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By
Reuters
Published
Jun 3, 2009
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Economic downturn squeezes Reitmans profit

By
Reuters
Published
Jun 3, 2009

TORONTO, June 3 (Reuters) - Reitmans (Canada) Ltd (RET.TO) reported a 58 percent drop in first-quarter profit on Wednesday 3 June as consumers cut back spending in the economic downturn.


Reitman's Summer Dresses 2009

The Montreal-based women's clothing retailer, whose banners include Reitmans, Smart Set and Penningtons, said it earned C$7.8 million, or 11 Canadian cents a share, in the quarter ended May 2, down from C$18.4 million, or 26 Canadian cents a share, a year earlier.

Overall sales rose 1.5 percent to C$231.7 million. However same store sales -- the performance of stores open for at least a year -- slid 0.8 percent.

Reitmans blamed the softer same store sales on the weak economy as consumers cut back on discretionary spending.

($1=$1.10 Canadian) (Reporting by Scott Anderson; editing by Rob Wilson)

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