Reitmans Canada Limited narrows net loss in first quarter

Canadian specialty apparel retailer Reitmans (Canada) Limited [RCL] has announced its financial results for the first quarter ended May 2, 2026, revealing progress in narrowing its net loss amid an ongoing strategic transformation.

Net revenues for the Montreal-based company grew 0.8% to 160.1 million Canadian dollars during the quarter, compared with 158.9 million Canadian dollars for the first quarter ended May 3, 2025. This growth was achieved despite operating seven fewer stores year-over-year. Net revenues from brick and mortar retail stores increased by 2.9%, driven by locations not included in comparable sales that benefited from investments in new store concepts.

Improved retail performance

Comparable sales, which encompass both store and e-commerce net revenues, ticked up by 0.3%, primarily supported by higher sales dollars per transaction. Gross profit remained steady at 89.1 million Canadian dollars compared to 88.5 million Canadian dollars in the previous year, while the gross profit percentage held completely stable at 55.7%.

The company successfully reduced its selling, general and administrative expenses by 2.2% to 96.9 million Canadian dollars, down from 99.1 million Canadian dollars. This reduction was primarily achieved through workforce reductions executed as part of its strategic turnaround plan. Consequently, the net loss for the quarter narrowed by 37.0% to 6.3 million Canadian dollars, compared to a net loss of 10.0 million Canadian dollars in the first quarter of the prior year.

Strategic transformation gains traction

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) showed a significant 49.1% improvement, rising by 5.2 million Canadian dollars to negative 5.4 million Canadian dollars from negative 10.6 million Canadian dollars.

Andrea Limbardi, president and chief executive officer of RCL, stated: “RCL delivered an improved first quarter compared to last year, with solid progress shown across the business despite a challenging economic environment.” Limbardi noted that the rise in fuel costs continues to strain consumers, but noted that investments in the store network are yielding results.

As part of the optimization of its retail footprint, the company unveiled a new concept flagship store for its Reitmans banner at Carrefour Laval, near Montreal. Additionally, after the quarter-end, the company-owned banner RW&CO completed a transformation of its Toronto Eaton Centre location. The updated store has exceeded corporate expectations since its reopening on May 29, 2026.

As of May 2, 2026, the retailer maintained working capital of 126.0 million Canadian dollars, including cash reserves of 101.9 million Canadian dollars. The group reported no significant long-term debt outside of lease liabilities, with no amounts drawn from bank credit facilities. During the quarter, the business also purchased 235,600 Class A non-voting shares for cancellation under its normal course issuer bid, representing a total cash consideration of 0.5 million Canadian dollars. The company intends to seek regulatory approval to renew this share repurchase programme when it expires in August 2026.

RCL operates 387 stores across Canada under three distinct retail banners, consisting of 217 Reitmans locations, 85 PENN. locations and 85 RW&CO locations.