Reitmans second quarter net revenues increased by 0.9 million Canadian dollars or 0.4 percent to 215.5 million dollars despite operating 16 less stores. Comparable sales, which include e-commerce net revenues, increased by 3.5 percent.
The company said that although Canadian consumers continued to tighten discretionary spending, net revenues were maintained mainly through improved sales dollars and units per transaction.
Commenting on the second quarter results, Andrea Limbardi, president and CEO of Reitmans Canada said: “Our teams successfully navigated supply chain challenges and avoided late deliveries, which ensured our stores had the right inventory at the right time. All of that, in addition to being less promotional during the quarter, contributed to improved gross margins and higher profitability.”
Gross profit for the quarter grew by 7.6 million dollars to 127.3 million Canadian dollars and gross profit as a percentage of net revenues improved 330 basis points to 59.1 percent.
Net earnings increased by 2.3 million Canadian dollars or 17.2 percent to 15.7 million Canadian dollars or 32 cents basic and diluted earnings per share), while adjusted EBITDA increased by 4.2 million Canadian dollars or 21.9 percent to 23.4 million Canadian dollars.
“While the overall retail environment continues to be affected by economic uncertainty and logistics issues, we are well-positioned to drive profitable growth,” added Limbardi.