Home / Knowledge / News / Apparel/Garments / Reitmans sales marginally down 1.9% in FY'13
Reitmans sales marginally down 1.9% in FY'13
09
Apr '13
The fiscal year ended February 2, 2013 ("fiscal 2013") includes 53 weeks instead of the normal 52 weeks. The inclusion of an extra week occurs every fifth or sixth fiscal year due to the Company's floating year-end.

Sales for fiscal 2013 decreased 1.9% to $1,000,513,000 as compared with $1,019,397,000 for the year ended January 28, 2012 ("fiscal 2012"). This decrease in sales is due primarily to a net reduction of 31 stores in fiscal 2013 and a same stores sales1 decrease of 2.0% partially offset by an additional week of sales. 

The Company experienced lower store traffic in a challenging retail environment and was impacted by a disruption in the planned flow of inventory to stores as described below.  The Company's gross margin for fiscal 2013 decreased to 62.8% from 64.4% for fiscal 2012. 

Net earnings for fiscal 2013 decreased 44.0% to $26,619,000 ($0.41 diluted earnings per share) as compared with $47,539,000 ($0.72 diluted earnings per share) for fiscal 2012.  For fiscal 2013, adjusted EBITDA1 decreased by $35,837,000 or 28.3% to $90,951,000 as compared with $126,788,000 for fiscal 2012.

Sales for the fourth quarter of fiscal 2013 increased 3.0% to $267,659,000 as compared with $259,954,000 for the fourth quarter of fiscal 2012.  This increase in sales is due to an additional week of sales partially offset by a reduction in the number of stores and a same store sales1 decrease of 1.5%.  The fourth quarter sales of fiscal 2013 were impacted by a difficult retail environment.

The Company's gross margin for the fourth quarter of fiscal 2013 decreased to 59.2% from 60.4% for the fourth quarter of fiscal 2012.  The Company recorded a net loss for the fourth quarter of fiscal 2013 of $1,080,000 ($0.01 diluted loss per share) as compared with a profit of $4,674,000 ($0.07 diluted earnings per share) for the fourth quarter of fiscal 2012.

This loss reflects operational losses of approximately $1,200,000, including start-up expenses, directly relating to the new Thyme Maternity boutiques initiative in the Babies"R"Us stores in the United States. Adjusted EBITDA1 decreased by $8,881,000 or 40.3% to $13,140,000 as compared with $22,021,000 for the fourth quarter of fiscal 2012.

Management is disappointed with the results for fiscal 2013 and has taken action in the merchandising and marketing efforts of each of its banners to improve sales and profitability.  Additionally, the Company has undertaken an initiative to improve efficiencies and reduce overhead across head office and field activities.

During the year, the Company opened 54 new stores and closed 85.  Accordingly, at February 2, 2013, there were 911 stores in operation, consisting of 361 Reitmans, 146 Smart Set, 73 RW & CO., 72 Thyme Maternity, 153 Penningtons, and 106 Addition Elle, as compared with a total of 942 stores as at January 28, 2012. In addition, there were 20 Thyme Maternity boutiques ("shop-in-shop") in select Babies"R"Us locations in Canada and 154 boutiques in Babies"R"Us stores in the United States.

Reitmans

Must ReadView All

Courtesy: H&M

Apparel/Garments | On 30th Mar 2017

H&M group's sales increase 7% in 3 months to Feb '17

The H&M group's sales including VAT amounted to SEK 54,369 million...

Textiles | On 30th Mar 2017

Vietnam’s textile & garment exports earn $4bn in Jan-Feb

Vietnam earned $4 billion from textile and garment exports in the...

Textiles | On 30th Mar 2017

India Inc should work for July 1 GST roll out: Fin sec

The Goods and Services Tax (GST) will take India into a very exciting ...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search