Reitmans (canada) Limited · TSXV:RET
Reitmans (canada) — Q1 2025 Earnings Presentation
22 slides from Reitmans (canada)'s earnings presentation, Jun 19, 2024
Slide 1: Q1 2025 Earnings Call
Q1 2025 Earnings Call June 19, 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Reitmans (Canada) Limited (the "Company”) with respect to future business activities and operat
Slide 3: Q1 2025 General Overview
Q1 2025 GENERAL OVERVIEW Andrea Limbardi President and Chief Executive Officer 3
Slide 4: My Background – Andrea Limbardi
My Background – Andrea Limbardi Formerly President of Indigo • 21 years at Indigo in roles related to Strategy, Digital, Marketing, and Operations. President of Indigo. Founder of Thoughtfull.co • Curated marketplace of the most giftable products, experiences and services MBA from Concordia Universi
Slide 5: RCL's Brands
RCL’s Brands Leading Women’s brand Canada’s premier destination Lifestyle brand catering to men offering unique superior style, for plus-size fashion – where and women who are the quality, fit, and value. style and fit are unparalled. trendsetters amongst their peers. 227 stores 85 stores 80 stores
Slide 6: My Early Impressions
My Early Impressions One of the best-kept secrets in Canadian apparel retail industry • Need to bring to life and to market our strong value propositions for each brand Why we win • Unmatched quality, style and fit at the most accessible prices Fine-tuning growth plans in coming months • Leveraging
Slide 7: Quarterly Overview—Q1 2025
Quarterly Overview—Q1 2025 • Stable revenues and improved margins despite higher interest rates and [Opportunity for image from the inflationary pressures negatively affected denim event] consumer spending • Notable contributions from Reitmans’ fashion denim collection campaign, Birds Papaya collabo
Slide 8: Quarterly Overview—Q1 2025
Quarterly Overview—Q1 2025 • Continued focus on long-term strategic roadmap and modernization of digital technology and distribution centre [Opportunity for image from the Birds Papaya collaboration or the men's casual business collection in • Benefited from the new robotics system RW&CO] for the di
Slide 9: Capital Allocation Priorities
Capital Allocation Priorities • Invest in store renovations and new Historical Store Count(1) openings 500 • Modernization – digital technology and 80 infrastructure (i.e. distribution centre) 400 78 77 80 81 80 300 111 92 • Forecasting capital expenditures of $32 90 91 86 85 million for FY 2025 ($6
Slide 10: Q1 2025 Financial Results
Q1 2025 FINANCIAL RESULTS Richard Wait, CPA Executive Vice-President and Chief Financial Officer 10
Slide 11: Net Revenues
Net Revenues • Net revenues remained stable 180 165.7 165.7 despite having 14 less stores, as 160 sales dollar per transaction improved 140 120 • Comparable sales(1) were down 4.6% 100 primarily due to lower online traffic 80 60 40 • Retail store activity accounted for 20 75.4% of net revenues in Q1
Slide 12: Gross Profit and SG&A Expenses
Gross Profit SG&A(1) Expenses 100 93.9 100 92.4 95.1 88.8 80 80 60 60 40 40 20 20 0 0 Q1 2024 Q1 2025 Q1 2024 Q1 2025 In millions of C$ In millions of C$. • Gross profit margin improved 310 bps to 56.7% • Rent increases in Q1 were approximately 9% over LY • Improvement due to lower promotional activ
Slide 13: Net Loss, Adjusted EBITDA, ROA
Net Loss Adjusted EBITDA(1) ROA(2) Q1 2024 Q1 2025 Q1 2024 Q1 2025 0 1 0.9 0 -1 0 -1.2 -1.5 Q1 2024 Q1 2025 -2 -1 -1.2 -3 -4 -2 -4 -3.6 -3.8 In millions of C$ In millions of C$. In millions of C$. • Loss per share were $(0.03) vs • Improvement of $2.1 million • Improvement of $2.4 million $(0.08) a
Slide 14: Solid Financial Position
Solid Financial Position Working Capital(1) $98.9M 153.4 Strong cash position provides flexibility 139.7 $127.6M Well-positioned inventory level Q1 2024 Q1 2025 $115M In millions of C$ Undrawn revolving credit facility (1) This is a non-GAAP financial measure. See the Appendix on page 20 for a calcu
Slide 15: Outlook
OUTLOOK Andrea Limbardi President and Chief Executive Officer 15
Slide 16: Outlook
Outlook • Key competitive advantages will enable RCL to navigate through uncertain macroeconomic environment • Focused on driving long-term profitable growth through omnichannel strategy • Key initiatives for fiscal 2025 • Continued development of 3D design capabilities • New point of sale system •
Slide 17: Reitmans, Penningtons, RW&CO.
Reibuang PENN, RW&CO.
Slide 18: Appendix
APPENDIX 18
Slide 19: Non-GAAP Financial Measures and Supplementary Financial Measures
Non-GAAP Financial Measures and Supplementary Financial Measures This presentation makes reference to certain non-GAAP measures. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. They are therefore unlikely to be comparable to similar me
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 20
Slide 21: Supplementary Financial Measures
Supplementary Financial Measures The Company uses a key performance indicator (“KPI”), comparable sales, to assess store performance and sales growth. The Company engages in an omnichannel approach in connecting with its customers by appealing to their shopping habits through either online or store
Slide 22: Reitmanscanadalimited.com
reitmanscanadalimited.com