Reitmans Q4 sales up 11.4 percent, but profits narrow

Reitmans (Canada) Limited has reported an 11.4 percent increase in sales in the fourth quarter ended January 28, boosted by a 12.7 percent increase in comparable sales.

The company made net sales of 211.9 million dollars in the quarter, up from 190.2 million Canadian dollars a year earlier.

It said its strong comparable sales were due to “an increase in store and online traffic and customers' overall transaction value”.

On a less bright note, the company’s net profit narrowed to 27.5 million Canadian dollars in the quarter from 97.3 million Canadian dollars the prior year.

For the full year, net sales increased to 800.6 million Canadian dollars from 662 million Canadian dollars a year earlier, while its net profit narrowed to 77.7 million Canadian dollars from 158.3 million Canadian dollars.

“I am extremely proud of our team's performance in fiscal 2023 after exiting from the Companies' Creditors Arrangement Act in January 2022 with net sales up 20.9 percent over fiscal 2022,” said Reitmans CEO and president Stephen F. Reitman in a release.

He continued: “And despite near term headwinds related to the economic environment, which impacted our performance in the fourth quarter of 2023 and which may persist through the first part of fiscal 2024, we remain excited about our strong competitive positioning and ability to serve our customers, as we work towards delivering on our long-term growth aspirations.”