Topic: How To Invest

Stock Pickers Digest Hotline – Friday, June 2, 2017

Article Excerpt

REITMANS (CANADA) LTD., $4.55, symbol RET.A on Toronto, owns 669 women’s clothing stores across Canada. Those outlets are divided among several brands: Reitmans (283 stores), Penningtons (126), Addition Elle (96), RW & Co. (84), Thyme Maternity (61) and Hyba (19). The company has now closed all of its Smart Set stores and its 18 Thyme Maternity boutiques (located in Babies “R” Us stores) across Canada. For the first quarter ended April 29, 2017, sales rose 1.8%, to $207.1 million from $203.5 million a year earlier. Revenue increased despite the closure of 81 stores over the last year. Same-store sales gained 5.4%. Overall, sales through physical locations rose 1.2%, while e-commerce sales jumped 55.5%. In the quarter, the retailer lost $6.6 million, or $0.10 a share, compared to its loss of $6.0 million, or $0.09 a share, a year earlier. The latest quarter is typically the slowest for Reitmans, and typically generates losses. Reitmans’ balance sheet remains strong: the company holds cash and securities of $146.7…