Reitmans reports wider first-quarter net loss, slight dip in sales

MONTREAL – Reitmans (Canada) Ltd. has reported a wider net loss for the first quarter, along with lower same-store sales.

The clothing retailer (TSX:RET.A) posted a loss Tuesday of $2.6 million, or four cents per share, compared with a loss of $119,000, or nil per share, during the same period a year earlier.

Sales were more-or-less flat at $217 million, while same-store sales decreased 3.5 per cent compared to the year-earlier, as consumers reined in their discretionary spending and unseasonable weather affected results.

Earlier this year, Reitmans launched a review geared toward improving efficiency and costs.

The retailer cut its workforce, resulting in severance costs of about $1 million during the quarter, but the job cuts are expected to result in annualized savings of $3 million.

Reitmans had 909 stores at the close of the quarter including 359 Reitmans, 145 Smart Set, 73 RW & Co., 72 Thyme Maternity, 157 Penningtons and 103 Addition Elle stores.

In addition, the were 20 Thyme Maternity boutiques in select Babies”R”Us locations in Canada and 154 in the United States.