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By
Reuters
Published
Dec 1, 2011
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Cautious consumer spending squeezes Reitmans Q3 profit

By
Reuters
Published
Dec 1, 2011

Women's apparel retailer Reitmans (Canada) Ltd posted a lower third-quarter net income, hurt by weak demand amid concerns over economic conditions.

The Montreal-based retailer, which opened 14 new stores in the quarter, posted a 2.3 percent drop in same-store sales in November.

August-September net income fell to C$10.6 million, or 16 Canadian cents a share, from C$20.7 million, or 31 Canadian cents a share, a year ago.

Quarterly sales fell 3.2 percent to C$254.1 million as a result of weaker customer traffic due to high personal debt levels amongst customers, the company said in a statement.

Shares of the company closed at C$14.87 on Wednesday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Maju Samuel)

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