Bullboard - Stock Discussion Forum Reitmans Ord Shs V.RET.A

Primary Symbol: V.RET Alternate Symbol(s): RTMAF | RTMNF

Reitmans (Canada) Limited is a Canada-based women's specialty apparel retailer with retail outlets throughout Canada. The principal business activity of the Company is the sale of women’s wear. The Company operates through the sale of women’s specialty apparel to consumers through its retail banners. The Company operates under three banners: Reitmans, Penningtons and RW&CO. Reitmans is a... see more

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TSXV:RET - Post Discussion

Reitmans Ord Shs > Older commentary from April 2023/Trevor Rose (5i Research)

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Post by RedeyeGarf2 on Jul 23, 2023 10:35am

Older commentary from April 2023/Trevor Rose (5i Research)

WEAKNESS

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

There are no analysts/estimates for RET.A, insiders owns around 57% of the company. 4Q sales increased by 11.4%.
Marketing helped store traffic but higher costs and macro headwinds hurt the quarter.
Comparable sales rose 12.7%, with e-commerce sales 34% of the total. The 4Q profit was also impacted by higher incentive awards to staff.
After a huge run-up, reality has set into the stock, and it is down sharply from its high in February.
Comp. sales numbers are good, but we would like to see some more cost control here.
The valuation is cheap and the balance sheet is fine and the trailing twelve-month cash flow of $150M is quite solid.
We think the company could be trading around 8x – 10x P/E.
We consider the name to be highly volatile.
After the big drop we would be more comfortabele entering while being mindful of its size risks.
That being said, we would prefer to see another couple of quarters to see if costs can get under control better.

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