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Reitmans Ord Shs V.RET

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

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.


TSXV:RET - Post by User

Comment by TheCount11on May 16, 2022 1:36pm
83 Views
Post# 34686758

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

RE:RET - not generating as much cash flow as thought? Yeah I have been saying that for a while. 

Using your numbers look at depreciation $47.6 vs capital expenditures $15.2

Hard to know what proper CapEx number should be but you could drive a truck through the difference.

Calculating a meaningful FCF is almost impossible due to one time costs and benefits in 2021. 

I believe investors need a model of the business and how working capital changes based on that.  Ie given most ecommerce is fulfilled from the warehouse and there are less stores there should be less working capital required per dollar of gross profit.  CapEx also decreases per dollar of gross profit as there are less stores to maintain and refresh while some revenue from closed stores is recaptured at open stores.  Less stores also means less labour and distribution costs.
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