Same store sales drop at clothing retailer Reitmans
Reitmans (Canada) Limited announces results of Year-End January 29, 2011.
Sales for the year ended January 29, 2011 increased 1.3% to $1,070,277,000 as compared with $1,056,527,000 for the year ended January 30, 2010. Same store sales decreased 0.1%. Earnings before interest, taxes, depreciation and amortization and investment income increased 15.2% to $182,604,000 as compared with $158,488,000 last year.
The Company's gross margin increased from 64.2% to 67.2% in the year ended January 29, 2011, primarily due to the strengthening of the Canadian dollar vis-à-vis the US dollar. Net earnings increased 29.4% to $87,021,000 or $1.29 diluted earnings per share as compared with $67,236,000 or $0.98 diluted earnings per share last year.
Sales for the fourth quarter ended January 29, 2011 increased 0.5% to $269,484,000 as compared with $268,120,000 for the fourth quarter ended January 30, 2010. Same store sales for the fourth quarter decreased 0.6%. For the fourth quarter ended January 29, 2011, EBITDA decreased 15.4% to $31,582,000 as compared with $37,317,000 for the same period last year. The Company's gross margin decreased slightly from 65.0% to 64.7% for the fourth quarter ended January 29, 2011.
An improvement in the gross margin attributable to the strength of the Canadian dollar in the fourth quarter ended January 29, 2011 was offset by a reduction due to increased promotional activity. Net earnings for the fourth quarter ended January 29, 2011 decreased 19.1% to $11,401,000 or $0.17 diluted earnings per share as compared to $14,088,000 or $0.21 diluted earnings per share for the same period last year.
During the year, the Company opened 31 new stores and closed 40. Accordingly, at January 29, 2011, there were 968 stores in operation, consisting of 364 Reitmans, 158 Smart Set, 67 RW & CO., 75 Thyme Maternity, 22 Cassis, 161 Penningtons and 121 Addition Elle, as compared with a total of 977 stores as at January 30, 2010.
At the Board of Directors meeting held on March 30, 2011, a quarterly cash dividend (constituting eligible dividends) of $0.20 per share on all outstanding Class A non-voting and Common shares of the Company was declared, payable April 28, 2011 to shareholders of record on April 15, 2011.
Non-GAAP Financial Measures
In addition to discussing earnings measures in accordance with generally accepted accounting principles, this press release provides earnings before interest, taxes, depreciation and amortization and investment income as a supplementary earnings measure. Depreciation and amortization includes the write-off of capital assets. The Company also discloses same store sales, which are defined as sales generated by stores that have been open for at least one year.
The Company believes these measures provide meaningful information on the Company's performance and operating results. However, readers should know that these non-GAAP financial measures have no standardized meaning as prescribed by GAAP and may not be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation.
Reitmans (Canada) Limited is one of the largest publicly-owned retail companies in Canada, it still operates with a strong family culture.
Reitmans (Canada) Limited