Reitmans earnings flat for 1st quarter

Shares of Reitmans (Canada) Ltd. slipped almost seven per cent on Wednesday after the clothing retailer posted flat first-quarter income.

On the TSX, Reitmans stock closed down $1.27 at $16.99.

Earlier, the company said it made $18.4 million, or 26 cents a share, in the first quarter, essentially unchanged from the same quarter a year earlier.

The company's sales for the first quarter slipped one per cent to $228.3 million from $230.7 million of the previous year.

Same-store sales — a closely watched figure of sales at stores open at least 12 months — was off 4.8 per cent "in a challenging retail environment characterized by unseasonable weather conditions, reduced customer traffic and reduced consumer confidence."

The company's operating earnings rose 13.2 per cent to $39.3 million from $34.8 million on the strength of the higher Canadian dollar and tight inventory management.

Reitmans had 964 stores in operation, as of May 3:

375 Reitmans164 Smart Sets55 RW & Co.73 Thyme Maternity14 Cassis162 Penningtons121 Addition Elle

The company plans to add 32 stores this year, while 18 stores will be remodelled and 14 stores will be closed.

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