MONTREAL - Reitmans (TSX:RET.A) has posted a big decrease in second-quarter earnings as the retailer's revenue fell 9.3 per cent along with a drop in same-store sales.
The operator of such banners as Reitmans, RW & Co., Penningtons and others says net income fell to $10.2 million or 16 cents per diluted share in the three months ended Aug. 3.
That compared with net earnings of $27.6 million or 42 cents in the three months ended July 28 last year.
Revenue fell to $253.4 million from $279.5 million in the year-earlier period as same-store sales, an important metric in the retail industry, contracted 6.8 per cent.
During the quarter the company opened three new stores — one Reitmans, one RW & Co. and one Penningtons — and closed a dozen, including three Reitmans locations, four Smart Set and five Penningtons stores.
At the end of the quarter there were 900 stores in operation — 357 Reitmans, 141 Smart Set, 74 RW & CO., 72 Thyme Maternity, 153 Penningtons and 103 Addition Elle — down from 918 stores a year earlier. In addition, it has 21 Thyme Maternity boutiques in select Babies R Us locations in Canada and 158 boutiques in Babies R Us stores in the United States.
© Copyright 2013