Reitmans Ord Shs V.RET

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

Consumer Cyclical

Reitmans (Canada) Limited is a Canada-based specialty apparel retailer for women and men, with retail outlets throughout the country. The principal business activity of the Company is the sale of women’s wear. The Company operates three different brands: Reitmans, Penningtons and RW&CO. The Reitmans banner is a specialty fashion destination. The Reitmans has an online presence and store locations across the country. Penningtons is a destination for plus-size fashion, ranging from sizes 14 to 32. Penningtons operates stores across Canada, as well as an ecommerce site at penningtons.com. RW&CO. operates stores averaging 4,500 square feet in premium locations in shopping malls, as well as on their e-commerce site. Specializing in menswear and womenswear, the brand delivers versatile, well-crafted collections and brand experiences. It operates approximately 391 stores under three distinct banners consisting of 226 Reitmans, 85 Pennington, and 80 RW&CO.

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Reitmans Ord Shs > RET - not generating as much cash flow as thought?

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Comment by savyinvestor333on May 16, 2022 12:27pm

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Post# 34686516

RE:RET - not generating as much cash flow as thought?

You need to read the Seventh Monitor's Report. They clearly state they expected negative cash flow of around $20 million for the 20 weeks ending Jan 29 and explain why. January is always a slow month plus they pay for all the spring clothes.

Mephistopheles3 wrote: Hey guys, I was getting the info ready to do a proper DCF analysis on Reitman's when I noticed that unless I made some typos or errors, but free cash flow from ongoing operations is not as good as I was originally thinking or as they were disclosing as adjusted earnings. I was trying to ignore all restructuring costs / recoveries and just do the basic gross profit, SG&A, capex and pmt lease liabilities.

One thing to keep in mind is that there is $22.7 million of CEWS grants in the year which are non-recurring so I pulled that out, which includes a heavy amount in Q4-21. I am showing that they actually had negative cash flow in the last quarter when you normalize it.

Analysis shown in the picture below - let me know what you think.

FCF by quarter