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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 Torontojayon Feb 16, 2023 10:49am
85 Views
Post# 35289822

RE:RE:RE:RE:RE:RE:My two cents

RE:RE:RE:RE:RE:RE:My two cents

A few points out I'd like to talk about.

First, I like to work with a margin of safety in my cash flow analysis. It is better to err on the conservative side even if it's pessimistic than to be overly ambitious and disappointed if your numbers fall short. I cannot tell you how often this has happened to me. 

Second point I'd like to mention is the threat of a looming recession/job losses and it's impact on retail. Forward looking cash flows can be a lot different than backward looking indicators. 

Third point is that trailing 12 month cash flow indicators may not be a sustainable number to use in your cash flow analysis. There is pent up demand from store closures during the lockdown which has increased the demand for their goods. This type of revenue/cash flow per store may or may not repeat in future years. I hope it does but I won't use trailing 12 month figures as a sustainable cash flow figure. I'll err on the conservative side. 


 

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