Reitmans Canada reports Q4 revenue growth amid strategic transformation

Canadian specialty apparel retailer Reitmans (Canada) Limited (RCL) has reported a 1.2 percent increase in net revenues for the fourth quarter ended April 10, 2026. The Montreal-based group achieved 207.2 million Canadian dollars (150 million dollars) in revenue during the period, despite operating with a lower store count than the previous year.

The company attributed the growth to disciplined promotional activity, particularly during peak holiday periods. Comparable sales, which include e-commerce net revenues, rose by 0.4 percent in the fourth quarter. For the full year, net revenues saw a slight increase of 0.4 percent to 776.8 million Canadian dollars, though annual comparable sales declined by 0.7 percent.

Margin expansion driven by reduced markdowns

RCL saw a significant improvement in its gross profit, which rose by 7.6 million Canadian dollars to 113.8 million Canadian dollars. Gross profit as a percentage of net revenues reached 54.9 percent, representing an increase of 300 percentage points compared to the same quarter in the prior year.

This margin expansion was primarily the result of higher transaction values as the retailer relied on fewer markdowns. Adjusted EBITDA for the quarter grew by 4.8 million Canadian dollars to reach 2.2 million Canadian dollars. However, the full-year adjusted EBITDA decreased by 6.7 million Canadian dollars to 18.7 million Canadian dollars, a result largely impacted by performance in the first quarter.

Strategic transformation and workforce reorganisation

The group reported a net loss of 4.9 million Canadian dollars for the quarter, compared to a loss of 4.2 million Canadian dollars in the fourth quarter of the prior year. This result was influenced by 5.5 million Canadian dollars in strategic transformation expenses.

These costs relate to a significant initiative to reorganise the workforce and consulting fees under the five-year strategic plan, ‘Designed for the Future’. President and chief executive officer of RCL, Andrea Limbardi, stated that these investments are expected to drive improved productivity beginning in fiscal 2027.

“We continued to advance our five-year strategic plan with the launch of our new brand websites on Shopify,” Limbardi said. The CEO also noted the opening of the first menswear-only pop-up store for RW&CO in Yorkdale Shopping Centre and a new Reitmans location in British Columbia.

RCL carries out portfolio optimisation

Throughout fiscal 2026, the company actively managed its physical footprint by opening 13 new stores, relocating two, and expanding five locations. The group closed 15 stores during the year.

Specific brand developments included a new store experience model for PENN. and the opening of an elevated flagship for RW&CO in Saint-Bruno. Looking ahead to fiscal 2027, the Reitmans brand is scheduled to open a new flagship at Carrefour Laval in April 2026.