Reitmans (Canada) Limited Reports Fourth Quarter and Fiscal 2026 Financial Results

Adjusted EBITDA improved by $4.8 million in the Fourth Quarter

MONTREAL, April 9, 2026 /CNW/ - Reitmans (Canada) Limited ("RCL" or the "Company") (TSXV: RET) (TSXV: RET-A), one of Canada's leading specialty apparel retailers, today reported its financial results for the fourth quarter and year ended January 31, 2026. Unless otherwise indicated, all comparisons are to the fourth quarter and year ended February 1, 2025.  All dollar amounts are in Canadian currency.

Highlights

• Net revenues grew 1.2% to $207.2 million for the quarter and 0.4% to $776.8 million for the year.
• Comparable sales¹, which include e-commerce net revenues, were up 0.4% for the quarter but were down 0.7% for the year.
• Gross profit % increased 300 basis points for the quarter but was down 30 basis points for the year.
• Selling General & Administrative (SG&A) expenses, excluding strategic transformation expenses, were relatively flat in the quarter and higher by $3.5 million for the year.
• Adjusted EBITDA¹ grew by $4.8 million to $2.2 million for the quarter but decreased $6.7 million to $18.7 million for the year, mostly due to the first quarter results.
• Net loss was $4.9 million for the quarter and $0.9 million for the year.

"RCL had a solid fourth quarter, with year-over-year growth in net revenues, gross profit margin, and adjusted EBITDA," said Andrea Limbardi, President and CEO of RCL. "Comparable sales were up 0.4%, but we achieved this with fewer promotions, as we performed particularly well during the peak Holiday moments. We continued to advance our five-year strategic plan, Designed for the Future, with the launch of our new brand websites on Shopify, as well as opening the first RW&CO's menswear–only pop-up store in Yorkdale Shopping Centre in Ontario and a Reitmans store in British Columbia. We also launched a significant initiative to reorganize our workforce, representing $5.5 million in strategic transformation expenses during the quarter, which we expect to drive improved productivity beginning in fiscal 2027."

"While our five-year strategy is still in its early days, we made substantial progress in fiscal 2026. We made significant investments in our footprint and brands, completing 13 new store openings, 2 additional relocations, 5 expansions, and refreshing 17 locations. We also closed 15 stores to sharpen our focus on more optimal locations. The opening of the RW&CO Saint–Bruno flagship marked an important step for the brand's elevated positioning, along with continued strong performance in menswear; Reitmans customers responded well to a continued shift in perception and the introduction of on–trend collections throughout the year; and PENN. introduced its new store experience sales model, which has since been rolled out across the entire chain."

"In fiscal 2027, RCL will continue to focus on disciplined execution, strengthening customer experience, and advancing its strategic investment in stores. Significantly, the Reitmans brand will open a new Carrefour Laval flagship location in April 2026. As we enter our 100^th year in business, and as our strategy progresses, RCL is evolving into a more resilient business and is positioning itself to deliver strong, sustainable growth in the years ahead."

Selected Financial Information

Fourth Quarter Overview

Net revenues increased by $2.4 million, or 1.2%, to $207.2 million, despite a lower store count year-over-year. Comparable sales¹, which include e-commerce net revenues, increased 0.4%, primarily due to less markdowns and promotional activity, resulting in higher transaction value.

Gross profit increased by $7.6 million to $113.8 million. Gross profit as a percentage of net revenues was 54.9%, which was 300bps higher than the same quarter in the prior year. The increase in gross profit and gross profit percentage was primarily due to less markdowns and promotional activity.

Adjusted EBITDA¹ increased by $4.8 million to $2.2 million. The increase was largely due to higher gross profit.

The Company incurred strategic transformation costs of $5.5 million related to personnel expenses and consulting fees in the quarter.

Net loss was $4.9 million compared to a loss of $4.2 million in the fourth quarter of the prior year.

On January 31, 2026, RCL had working capital¹ of $137.2 million, including cash of $151.0 million compared to working capital of $165.7 million, including cash of $158.1 million at the prior year end. As at January 31, 2026, and February 1, 2025, RCL had no long-term debt other than lease liabilities, and no amounts were drawn under the Company's bank credit facilities.

Conference Call

The Company will host a conference call on April 10, 2026, at 8:30 am Eastern Time to discuss its fourth quarter and full year financial results. Interested parties may join the conference call by dialing 1-833-752-3725 or 647-846-8584 approximately 15 minutes prior to the call to secure a line.

A live audio webcast of the call will be available at https://www.reitmanscanadalimited.com/events-presentations.aspx?lang=en and will be available for replay at this website for 12 months.

About Reitmans (Canada) Limited

Reitmans (Canada) Limited is one of Canada's leading specialty apparel retailers for women and men, with retail outlets throughout the country. The Company operates 388 stores under three distinct banners consisting of 218 Reitmans, 85 PENN., and 85 RW&CO.

For more information, visit www.reitmanscanadalimited.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

NON-GAAP Financial Measures

This press release discusses the following non-GAAP financial measures: adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), and working capital. In the third quarter of 2026, the Company began excluding strategic transformation expenses from Adjusted EBITDA. This press release also indicates that Adjusted EBITDA as a percentage of net revenues is considered non-GAAP financial ratio. The intent of presenting Adjusted EBITDA is to provide additional useful information to investors and analysts.

Adjusted EBITDA is currently defined as net (loss) earnings before depreciation, amortization, net impairment of non-financial assets, interest expense, interest income, income tax expense/recovery, and adjusted for the impact of certain items, such as strategic transformation expenses, pension windup-related costs, contract termination costs and a deduction of interest expense and depreciation relating to leases accounted for under IFRS 16, Leases. The Company began excluding strategic transformation expense from Adjusted EBITDA in the third quarter of 2026. Management believes that Adjusted EBITDA is an important indicator of the Company's ability to generate liquidity through operating cash flow to fund working capital needs and fund capital expenditures and uses this metric for this purpose. Management believes that Adjusted EBITDA as a percentage of net revenues indicates how much liquidity is generated for each dollar of net revenues. The exclusion of interest income and expenses, other than interest expense related to lease liabilities as explained hereafter, eliminates the impact on earnings derived from non-operational activities. The exclusion of depreciation, amortization and net impairment losses, other than depreciation related to right-of-use assets as explained hereafter, eliminates the non-cash impact and the exclusion of strategic transformation expenses, pension windup-related costs, and contract termination costs adjust the results to better reflect the on-going business. Strategic transformation expenses, which consist of employee termination benefits and consulting fees, are adjusted as they represent specific expenses related to restructuring efforts to evolve the Company's operating structure as part of the implementation of the Company's five-year strategic plan. These expenses are limited to the project's timeframe and occur before any ongoing benefits are achieved. Adjusting such expenses can also be useful in assessing financial performance across periods on a comparable basis. Under IFRS 16, Leases, the characteristics of some leases result in lease payments being recognized in net earnings in the period in which the performance or use occurs while other leases are recorded as right-of-use assets with a corresponding lease liability recognized, which results in depreciation of those assets and interest expense from those liabilities. Management is presenting its Adjusted EBITDA to reflect the payments of its store and equipment lease obligations on a consistent basis. As such, the initial addback of depreciation of right-of-use assets and interest on lease obligations are removed from the calculation of Adjusted EBITDA, as this better reflects the operational cash flow impact of its leases.

Working capital is defined as current assets less current liabilities.  Management believes that working capital provides information that is helpful to understand the financial condition of the Company. Due to the seasonality of the Company's business, it is more relevant to compare the working capital position at the same point in time.  

Reconciliation of NON-GAAP Financial Measures

The tables below provide a reconciliation of net (loss) earnings to Adjusted EBITDA:

Supplementary Financial Measures

The Company uses a key performance indicator ("KPI"), comparable sales, to assess store performance and sales growth. The Company engages in an omnichannel approach in connecting with its customers by appealing to their shopping habits through either online or store channels.  This approach allows customers to shop online for home delivery or to pick up in store, purchase in any of our store locations or ship to home from another store when the products are unavailable in a particular store.  Due to customer cross-channel behavior, the Company reports a single comparable sales metric, inclusive of store and e-commerce channels. Comparable sales are defined as net revenues generated by stores that have been continuously open during both of the periods being compared and include e-commerce net revenues. The comparable sales metric compares the same calendar days for each period. Although this KPI is expressed as a ratio, it is a supplementary financial measure that does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures used by other companies. Management uses comparable sales in evaluating the performance of stores and online net revenues and considers it useful in helping to determine what portion of new net revenues sales has come from sales growth and what portion can be attributed to the opening of new stores. Comparable sales is a measure widely used amongst retailers and is considered useful information for both investors and analysts. Comparable sales should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS Accounting Standards.

Forward-Looking Statements

All of the statements contained herein, other than statements of fact that are independently verifiable at the date hereof, are forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond the Company's control and are based on several assumptions which give rise to the possibility that actual results could differ materially from the Company's expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved.  Consequently, the Company cannot guarantee that any forward-looking statement will materialize, or if any of them do, what benefits the Company will derive from them. Forward-looking statements are provided in this press release for the purpose of allowing investors and others to get a better understanding of the Company's operating environment and management's expectations and plans as of the date of this press release. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose. Forward-looking statements are based upon the Company's current estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and currently expected future developments, as well as other factors it believes, are appropriate in the circumstances.

This press release contains forward-looking statements about the Company's objectives, plans, goals, expectations, aspirations, strategies, financial condition, results of operations, cash flows, performance, and prospects, opportunities and legal and regulatory matters. Specific forward-looking statements in this press release include, but are not limited to, statements with respect to the Company's belief in its strategies and its brands and their capacity to generate long-term profitable growth, plans to meet certain financial objectives, future liquidity, planned capital expenditures, status and impact of systems implementation, the ability of the Company to successfully implement its strategic initiatives and cost reduction and productivity improvement initiatives as well as the impact of such initiatives.  These specific forward-looking statements are contained throughout this press release and the Company's Management Discussion & Analysis ("MD&A") including those listed in the "Risk and Uncertainties " section of the MD&A. Forward-looking statements are typically identified by words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "strive", "will", "may" and "should" and similar expressions, as they relate to the Company and its management.  Forward-looking statements are based on information currently available to management and on estimates and assumptions, including assumptions about future economic conditions and courses of action.  Examples of material estimates and assumptions and beliefs made by management in preparing such forward looking statements: management's belief in its strategies and its brands and their capacity to generate long-term profitable growth, significant sales growth in RW&Co. both in stores and online, increased market share for both Reitmans and PENN., stability in the current market environment, changes in laws, rules, regulations and global standards, the Company's competitive position in its industry, the Company's ability to keep pace with changing consumer preferences, the absence of public health related restrictions impacting client shopping patterns or incremental direct costs related to health and safety measures, the Company's ability to execute on its capital expenditure plan, including at its distribution centre in Montreal, and the Company's ability to retain and recruit exceptional talent.

Numerous risks and uncertainties could cause the Company's actual results to differ materially from those expressed, implied or projected in the forward-looking statements. Please refer to the "Risk and Uncertainties" section of the Company's MD&A for fiscal 2026.

The reader should not place undue reliance on any forward-looking statements included herein. These statements speak only as of the date made and the Company is under no obligation and disavows any intention to update or revise such statements as a result of any event, circumstances or otherwise, except to the extent required under applicable securities law.

The Company's complete financial statements including notes and the Company's MD&A for fiscal 2026 are available online at www.sedarplus.ca.

SOURCE Reitmans (Canada) Ltd

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