Home / Knowledge / News / Apparel/Garments / Comparable store sales decrease at Reitmans

Comparable store sales decrease at Reitmans

06
Sep '08
Sales for the six months ended August 2, 2008 decreased 0.9% to $517,820,000 as compared with $522,637,000 for the six months ended August 4, 2007. Comparable store sales decreased 4.7% in a challenging retail environment characterized by unseasonable weather conditions, reduced customer traffic and reduced consumer confidence.

Operating earnings before depreciation and amortization for the period increased 9.1% to $103,319,000 as compared with $94,691,000 last year. A stronger Canadian dollar and tight inventory management positively impacted operating margins. Higher depreciation expenses due to an increased number of stores in operation and lower investment income negatively affected earnings before tax.

Net earnings increased 6.7% to $53,821,000 compared to $50,461,000 while diluted earnings per share increased 8.6% to $0.76 per share compared to $0.70 per share for last year. The Company had 970 stores in operation at the end of this period compared to 935 stores at the same time last year.

Sales for the second quarter ended August 2, 2008 decreased 0.8% to $289,502,000, as compared with $291,942,000 for the second quarter ended August 4, 2007. Same store sales for the comparable 13 weeks decreased 4.5%. Operating earnings before depreciation and amortization (EBITDA(1)) for the period increased 6.7% to $63,982,000 as compared with $59,941,000 last year.

Net earnings and diluted earnings per share increased to $35,385,000 or $0.50 per share as compared to $32,077,000 or $0.44 per share for the same period last year.

The Company adopted the Canadian Institute of Chartered Accountants new standard relating to the accounting for inventory costs (section 3031 - Inventories) in the first quarter of fiscal 2009 retrospectively, without restatement of prior periods.

The adoption of this new standard resulted in an increase in operating earnings of $2,746,000 for the three month period ended August 2, 2008. In the first quarter of this year, this accounting change reduced operating earnings by $2,721,000 such that the net effect of this accounting change for the six month year to date period was a $25,000 increase in operating income.

Sales for the month of August (four weeks ended August 30, 2008), as a result of the continuing difficult retail environment, increased 0.7% with comparable store sales decreasing 2.3%.

During the second quarter, the Company opened 10 new stores comprised of 4 Reitmans, 2 RW & CO., 2 Thyme Maternity, 1 Penningtons and 1 Addition Elle; 4 stores were closed. Accordingly, at August 2, 2008, there were 970 stores in operation, consisting of 377 Reitmans, 164 Smart Set, 57 RW & CO., 75 Thyme Maternity, 14 Cassis, 163 Penningtons and 120 Addition Elle. An additional 21 stores are scheduled to open this year, 20 stores will be remodeled and 6 stores will be closed.

At the Board of Directors meeting held on September 4, 2008, a quarterly cash dividend (constituting eligible dividends) of $0.18 per share on all outstanding Class A non-voting and Common shares of the Company was declared, payable October 30, 2008 to shareholders of record on October 16, 2008.

Reitmans (Canada) Limited


Must ReadView All

Pic: Shutterstock

Textiles | On 26th Feb 2020

Turkey's textile industry employs 1.67 mn: minister

Turkey's textile and garment industry currently employs around 1.67...

Pic: UNCTAD

Textiles | On 26th Feb 2020

Barbados unveils one-stop investment guide

As Barbados prepares to host the 15th quadrennial conference of the...

Pic: ModCloth

Retail | On 26th Feb 2020

Go Global Retail acquires ModCloth; Tiger Capital finances

With financing provided by Tiger Capital Group, Los Angeles-based...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

The budget will give major impetus to textile and apparel consumption

Yash Agarwal, Hitansh Online

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Textile industry, Head honchos

Textile industry
Head honchos

RCEP was always going to be a double-edged sword

Saad Khaled Bari,

Saad Khaled Bari

Benetex Industries is a public ltd company established in year 1992 to...

Zennure Danisman,

Zennure Danisman

Since its inception in 1953, Orta Anadolu has been weaving a denim...

Spring Chang,

Spring Chang

A specialist in manufacturing printing machines, <b>Wenzhou Changs</b>...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Sven Ghyselinck, Devan Chemical

Sven Ghyselinck
Devan Chemical

Headquartered in Belgium and with offices in the United Kingdom, Portugal...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

Leave your Comments


February 2020

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


Advanced Search