Canadian clothing retailer Reitmans has announced a 5.7% increase in gross profit for the first quarter (Q1) of the fiscal year 2025 (FY25), reaching C$93.9m ($68.3m), up from C$88.8m in the same quarter of the previous year.
The retailer's gross profit margin also saw an improvement, rising to 56.7% of net sales compared to 53.6% in Q1 FY24.
This improvement is largely due to a strategic reduction in promotional activities and an optimised product mix.
During the quarter ending 4 May 2024, net revenues of Reitmans remained steady at C$165.7m, mirroring figures from the first quarter of 2024.
This was achieved through higher sales transactions, counterbalancing the impact of Canadian consumers' reduced discretionary spending and the closure of 14 stores.
However, comparable sales, including e-commerce, fell by 4.6% due to a decline in online traffic.
Despite this, results from operating activities showed significant improvement to C$1.2m from C$3.6m in the previous year.
The retailer posted a net loss of C$1.5m ($1.08m), a notable improvement from a net loss of C$3.8m in the first quarter of 2024.
Its loss per share also improved, coming in at $0.03, better than the $0.08 loss per share recorded in 2024.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Reitmans turned positive at C$0.9m, a $2.1m improvement primarily due to the increased gross profits.
Reitmans president and CEO Andrea Limbardi said: "We had a good start to fiscal 2025 with stable revenues and improved gross profit margins despite the challenging economic environment that persisted in what is typically our softest quarter of the year.
"Particularly notable contributions to the quarter were the Reitmans 'Paris' collection and The Birds Papaya collaboration both contributing to bringing exceptional styles to our customers at accessible price points.
“We are also pleased with the continued successful menswear business growth at RW&CO giving men great choices for elevated styles.”
