Reitmans reports drop in Q2 sales, profit

Reitmans (Canada) Limited has reported a 7.5 percent drop in revenue in the second quarter as its profits narrowed.

The specialty apparel retailer generated revenue of 213.2 million Canadian dollars in the three months to July 29, down from 229.2 million Canadian dollars a year earlier.

The company said it was impacted by higher promotional activity as Canadian shoppers “cautiously managed their discretionary spending budgets”.

Its profit in that period narrowed to 13.4 million Canadian dollars from 37.3 million Canadian dollars.

CEO Andrea Limbardi said in a statement: “We saw positive customer response in our second quarter with traffic and conversion remaining relatively stable in our stores despite the challenging economic environment.

“Additionally, RCL has a strong balance sheet and cash flows from operations in the quarter contributed to the strength in financial position.”