Release Date: April 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Reitmans (Canada) Ltd (RTMAF, Financial) reported a 200 basis point improvement in gross profit margin for the year, increasing from 54.2% to 56.2%.
- The company successfully implemented the SORTRAK inventory system at its Montreal distribution center, optimizing store inventory management.
- Reitmans (Canada) Ltd (RTMAF) ended the fiscal year with a strong cash position of $158.1 million and no long-term debt other than lease liabilities.
- The company has launched a new five-year strategy aiming to reach $1 billion in annual revenues by fiscal 2030, with a focus on organic growth.
- Reitmans (Canada) Ltd (RTMAF) plans to reinvest approximately $100 million in growth initiatives over the next five years, focusing on store renovations, expansions, and digital modernization.
Negative Points
- Net revenues for the fourth quarter were down 2.9% compared to the prior year, primarily due to a slightly lower store count.
- The company reported a net loss of $4.2 million for the fourth quarter, compared to breaking even in the same period last year.
- Adjusted EBITDA for the fourth quarter was negative $2.6 million, a decrease from $1.7 million in the prior year.
- Comparable sales, including e-commerce, decreased by 0.2% in the fourth quarter, impacted by unseasonably warm weather delaying winter apparel sales.
- SG&A expenses were down only 1.6% in the quarter, with higher software expenses and pension costs partly offsetting savings from lower e-commerce shipping costs.
Q & A Highlights
Q: Hi, Andrea. Thanks for taking the questions. Main question is just on SG&A expense as a percent of revenue and how you and your CFO view that and the trends versus competitors and where that number should be? Thank you.
A: Thanks, Jesse, and I appreciate the question. We see an opportunity with our SG&A. Our SG&A was a little lower than last year when we look at a 52-week comparable lens. Having said that, one of our focuses this year is to dive in deeper in our SG&A and see where we can find more efficiencies. It's part of our strategy when we talk about automating processes to drive further efficiencies and looking at it in a few other ways as well. So great question and something that's important to us for sure.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
