Canadian womenswear retailer Reitmans has reported its net earnings declined by 81.0% to C$14.8m ($10.7m) in financial year 2024 (FY24), from C$77.7m in FY23.
This sharp decline is largely due to the recognition of deferred income taxes in financial year 2023, a decrease in gross profit, and increased operating costs.
Go deeper with GlobalData
The retailer’s basic and diluted earnings per share also fell to C$0.30, a stark contrast to the C$1.59 reported in FY23.
During the year ending 3 February 2024, the net revenues of Reitmans saw a slight decrease of 1.1%, totalling C$794.7m in FY24, down from C$803.3m in FY23.
The company attributes this decline to lower average transaction values and heightened promotional activities.
Comparable sales, inclusive of e-commerce net sales, decreased by 3.2% during FY24.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe retailer saw its gross profit decrease to C$431.0m in FY24, down by C$20.4m when compared with C$451.4m for FY23.
Consequently, gross profit as a percentage of net revenues also dropped to 54.2% from 56.2%.
Its adjusted return on assets for FY24 was C$22.0m, a decrease from C$45.7m in FY23 while adjusted earnings before interest, taxes, depreciation, and amortisation fell to C$29.2m from C$57.0m in the previous year.
In the fourth quarter of FY24, Reitmans reported no net earnings, a significant downturn from the $27.5m net earnings in the same quarter of the previous year.
However, net revenues for the quarter increased by 3.8% to C$221.0m, and gross profit saw a rise of C$5.4m to C$114.9m.
Reitmans president and CEO Andrea Limbardi said: “Results from operating activities for the fourth quarter of fiscal 2024 and the full fiscal 2024 year were amongst the best for RCL in a decade, even after excluding the extra week of fiscal 2024 and an unfavourable foreign exchange impact.
“Having come off an exceptional year in fiscal 2023, driven by post-Covid demand, fiscal 2024 was a year adjusting to a new reality in consumer shopping behaviour.”
