Reitmans (TSX:RET) shares slid 25% to $3.20 on Friday after the women's specialty apparel retailer announced that its fiscal 2023 net earnings from continuing operations fell to $77.7 million from $143.2 million last year, which the company attributed primarily to factors such as an increase in overall operating costs as well as lower restructuring recoveries.
Reitmans (TSX:RET) did, however, see its net sales for the period increase by 20.9% year over year to $800.6 million, while its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year rose to $57.0 million from $38.6 million during fiscal 2022.
“I am extremely proud of our team's performance in fiscal 2023 after exiting from the Companies' Creditors Arrangement Act in January 2022 with net sales up 20.9% over fiscal 2022,” Reitmans (TSX:RET) CEO Stephen Reitman said in a statement.
“And despite near term headwinds related to the economic environment, which impacted our performance in the fourth quarter of 2023 and which may persist through the first part of fiscal 2024, we remain excited about our strong competitive positioning and ability to serve our customers, as we work towards delivering on our long-term growth aspirations,” he added.
Reitmans also noted that its store traffic increased 47.6% year over year while its e-commerce traffic rose 8.9%, which the company said was the result of pent-up demand for work and social gathering apparel following the pandemic lockdown combined with its “compelling” marketing campaigns.
Reitmans added that it successfully mitigated difficult economic headwinds and supply chain delays by closely managing logistics and inventory levels throughout fiscal 2023.
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