Post by
TheCount11 on Apr 13, 2023 12:01pm
Thoughts on Q4
The fourth quarter wasn't profitable on an operating basis from 2013 to 2020 (except 2015 where small profit).
Results from operating activities from continuing operations for the fourth quarter of 2022 were $96.1 million.
As I have been saying the fourth quarter is different from other quarters. That holiday dress is for the holidays. The spring or summer dress doesn't have a hard cut off date. Selling fashion isn't like selling Coke.
Before e-commerce grew (with a generous return policy) the 4th quarter was profitable for Reitmans. Look at 2004 to 2012.
Once Reitmans management reviews their return policy to favor in store returns Q4 will likely on average be positive.
You have to look past the next quarter and not be short sighted to realize that an inverted yield curve with a recession is great for a company with a lot of cash and no debt vs companies with debt and no cash.
It was easy to set up an e-commerce apparel company when money was free and the focus was revenues not profits. Many things have changed that benefit Reitmans IF management takes advantage of them.
Comment by
filoux004 on Apr 13, 2023 12:19pm
Expect a strong close...every small cap Portfolio manager has this on their radar. An uplistibg to the TSX us in the cards with these strong financials. DD and glta
Comment by
TheCount11 on Apr 13, 2023 12:32pm
PS counter intuitively the best time to invest in right company is when their industry consolidates during a recession. Coming out of the recession there is growth and less competition.
Comment by
Torontojay on Apr 13, 2023 12:35pm
Yup. The strong get stronger. It pays to have a lot of cash in the bank and eventually the investment community will find out about it.