Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, April 10, 2015

Article Excerpt

REITMANS (CANADA) LTD., $7.48, symbol RET.A on Toronto, shot up over 15% this week after reporting a return to profitability in the latest quarter. Reitmans owns 823 women’s clothing stores across Canada, including 341 Reitmans stores, 139 Penningtons, 105 Addition Elle, 76 RW & Co., 68 Thyme Maternity and 94 Smart Set locations. It also has 21 Thyme Maternity boutiques in some Canadian Babies “R” Us locations. In the three months ended January 31, 2015, Reitmans’ sales fell 1.8%, to $236.3 million from $240.7 million a year earlier. Sales declined because the company closed 55 less-profitable stores. Same-store sales gained 2.1%. However, the store closures helped Reitmans earn $4.4 million, or $0.07 a share, in the latest quarter. A year ago, it lost $2.6 million, or $0.04. Earnings also benefited from cost-cutting measures, including layoffs at the company’s head office. The retailer’s balance sheet remains strong: it holds cash of $197.3 million, or $3.06 a share, and its long-term debt is just $3.6 million…