RE:RE:RE:RE:RET vs RET.AA lot of retail insiders think Reitmans is a dead brand. A brand is not dead when its does 353M in gross profit at a 53% margin while management is distracted by bankruptcy. If this year ends up with gross margins under 55% I will be very disappointed. In the past when gross margins were under 55% the company was generally not profitable. I should be profitable above 53% now based on Q4 adjusting for one time costs and benefits.
Covid offered retailers cover as we can't compare year to year and get meaningful results. 2020 and 2021 allowed retailers to focus on profitability rather than growth. My big bet on Reitmans was their almost bulletproof customer base and strong balance sheet. Inflation actually plays in RET favour as they own their warehouse and can pass along price increases. When I analyzed retail Reitmans really jumped out as a company that would be less promotional in 2022 vs 2019. So far that thesis is not playing out.