Ms. Andrea Limbardi reports

REITMANS (CANADA) LIMITED REPORTS FOURTH QUARTER AND FISCAL 2026 FINANCIAL RESULTS

Reitmans (Canada) Ltd. (RCL) has released its financial results for the fourth quarter and year ended Jan. 31, 2026. Unless otherwise indicated, all comparisons are with the fourth quarter and year ended Feb. 1, 2025. All dollar amounts are in Canadian currency.

Highlights:

• Net revenues grew 1.2 per cent to $207.2-million for the quarter and 0.4 per cent to $776.8-million for the year.
• Comparable sale, which include e-commerce net revenues, were up 0.4 per cent for the quarter but were down 0.7 per cent for the year.
• Gross profit per cent increased 300 basis points for the quarter but was down 30 basis points for the year.
• Selling, general and administrative (SG&A) expenses, excluding strategic transformation expenses, were relatively flat in the quarter and higher by $3.5-million for the year.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) 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 $900,000 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 chief executive officer of RCL. "Comparable sales were up 0.4 per cent, 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 work force, 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, two additional relocations, five 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 100th 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."

Fourth quarter overview

Net revenues increased by $2.4-million, or 1.2 per cent, to $207.2-million, despite a lower store count year over year. Comparable sales, which include e-commerce net revenues, increased 0.4 per cent, 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 per cent, which was 300 basis points 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 EBITDA 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 with a loss of $4.2-million in the fourth quarter of the prior year.

On Jan. 31, 2026, RCL had working capital of $137.2-million, including cash of $151-million, compared with working capital of $165.7-million, including cash of $158.1-million at the prior year-end. As at Jan. 31, 2026, and Feb. 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 a.m. Eastern Time to discuss its fourth quarter and full-year financial results. Interested parties may join the conference call by dialling 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 on the company's website and will be available for replay at this website for 12 months.

About Reitmans (Canada) Ltd.

Reitmans (Canada) 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 stores, 85 Penn. stores, and 85 RW&CO stores.

We seek Safe Harbor.