Fewer stores and warm weather impact Reitman's Q3 results

Reitmans’s (RCL) third quarter net revenues decreased by 2.9 percent to 187.7 million Canadian dollars primarily due to 11 fewer stores and unfavourably warm autumn weather.

Comparable sales for the quarter under review decreased by 1.9 percent.

"The quarter was impacted by warmer weather delaying sales of fall apparel. However, we achieved a higher gross margin rate due to strong inventory control and a continued focus on being less promotional." said Andrea Limbardi, president and CEO of RCL.

"Aligned with our strategic objectives, menswear continued to perform exceptionally well at RW&CO and our customers responded positively to our fall collection in all three brands once the weather cooled," added Limbardi.

Gross margin increased 166 basis points to 57.3 percent while gross profit remained flat at 107.6 million Canadian dollars. Adjusted EBITDA decreased to 3.8 million Canadian dollars, while net earnings decreased to 2.1 million Canadian dollars.

Limbardi further said: "Our store count lowered in comparison to last year as we continue to optimize store locations to align with evolving customer needs. However, we opened three new stores in strategic markets during the quarter. Additionally, the third quarter saw the successful ongoing modernization of our distribution center handling system."