Reitmans Ord Shs V.RET

Congrats Reitmans management and employees!

[TheCount11]

It was a hell of a year! Company has exited bankruptcy with a pristine balance sheet and much better sales per foot with 404 stores. Enjoy and celebrate it!

I got caught up in all the exciment around a stellar Q2, Q3 and 10th monitor report.  Q4 was very decent but I expected them to hit it out of the park with an EPS of $0.44 and revenues between 200M and 210M.  Was I too optimistic? In retrospect there was some wishful thinking on my part around demand forecasting, inventory and margins while management was exiting bankruptcy.  The Q4 50.6% GM will likely be better next year.
 

I still think $660M in revenues with $54M in profits is doable this year as its an 8% profit margin with no revenue growth. Competitors are upping prices so this means less units need to be sold just less crazy discounts / promotions.  Shareholders have been on a roller-coaster over the last couple of years and its time that management puts a NCIB in place to show they are good capital allocaters with the stock trading under $2.

[Shredder415]

Right there with you. Captial allocation will continue to be the big question mark holding the stock back. Also, fighting an uphill battle against investors not wanting to own retail heading into a possible recession. 

[TheCount11]

I personally don't get why NCIB is not already in place.  Reitmans share buybacks will boost both EPS and tangible book value but lower growth.  I don't think growth should be an objective heading into a slowdown. I don't see how traders think this will be a $4 stock without an NCIB then an uplisting.  Fund managers got burnt holding RET exactly 2 years ago.  Who

[splurge]

I think you need cash to buy back stock. splurge

[TheCount11]

I think there is cash to buy back stock.   TheCount