Reitmans reports $3.2 million net loss; sales steady despite store closures

MONTREAL — Reitmans Ltd. says it had a net loss of $3.2 million in the last quarter in an improvement from the $6.6 million net loss in the same quarter a year earlier.

The clothing retailer says the smaller losses for the quarter ending May 5, which amounted to five cents per share, came from a longer quarter, a foreign exchange boost, and reduced store operating costs.

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Reitmans says sales were $207.6 million in the quarter, compared with $207.1 million a year earlier despite a net reduction of 32 stores, while promotional costs were up on increased activity.

Online sales jumped 21.9 per cent in the quarter while store sales dropped 3.9 per cent. Overall sales were also boosted by about $8.8 million in the quarter because the first quarter ended a week later than last year's.

The company said in March it would close its 17 Hyba athletic clothing stores by next February and move the brand into the company's existing Reitmans stores.

Reitmans operates 637 stores including 269 Reitmans, 121 Penningtons, 89 Addition Elle, 80 RW & CO., 62 Thyme Maternity and the Hyba stores slated for closure.

Companies in this story: (TSX:RET)

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