Reitmans (Canada) Limited (TSX: RET.A) is a Toronto-based company engaged in the sale of women’s specialty apparel at retail. The company operates six retail banners, which include Reitmans, Penningtons, Addition Elle, RW & Co., Thyme Maternity and Smart Set.
RET.A shares have tumbled in trading today even as the company announced a dividend payment. The company declared a quarterly cash dividend of $0.05 per share on all outstanding Class A non-voting and Common shares. However, RET.A shares were down almost 19% to $4 in late trading today. RET.A currently offers a dividend yield of 4.87%.
RET.A shares fell as investors were disappointed with the company’s year-end results, which were also announced today. Reitmans reported that its sales for the year ended January 30, 2016 were $937.2 million, compared to $939.4 million reported for the year ended January 31, 2015. Same-store sales though increased 5.1%. However, much of the increase was due to e-commerce, which registered growth of 69.1%.
Reitmans’ gross margin for the year was also squeezed. Gross margin came in at 56.2%, compared to 60.4% reported in the previous year. Net loss for the year was $24.7 million, or $0.39 per basic and diluted share, compared to net earnings of $13.4 million, or $0.21 per basic and diluted share reported in the previous year.
