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

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Post by RedeyeGarf2on Jul 23, 2023 10:35am

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Post# 35553337

Older commentary from April 2023/Trevor Rose (5i Research)

WEAKNESS

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

There are no analysts/estimates for RET.A, insiders owns around 57% of the company. 4Q sales increased by 11.4%.
Marketing helped store traffic but higher costs and macro headwinds hurt the quarter.
Comparable sales rose 12.7%, with e-commerce sales 34% of the total. The 4Q profit was also impacted by higher incentive awards to staff.
After a huge run-up, reality has set into the stock, and it is down sharply from its high in February.
Comp. sales numbers are good, but we would like to see some more cost control here.
The valuation is cheap and the balance sheet is fine and the trailing twelve-month cash flow of $150M is quite solid.
We think the company could be trading around 8x – 10x P/E.
We consider the name to be highly volatile.
After the big drop we would be more comfortabele entering while being mindful of its size risks.
That being said, we would prefer to see another couple of quarters to see if costs can get under control better.