MONTREAL – Clothing retailer Reitmans (Canada) Ltd. reports its net profits were cut nearly in half in the third quarter as sales fell more than three per cent.
The Montreal company said late Wednesday it earned about $10.6 million or 16 cents a share for the three months ended Oct. 29, the third quarter of the company’s 2012 fiscal year.
That was down from $20.7 million or 41 cents a year ago.
Sales in the third quarter dropped 3.2 per cent to $254.1 million from $262.5 million.
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Reitmans said its business was impacted “by weaker customer traffic as consumers were faced with higher personal debt levels, high commodity costs and concern over economic conditions.”
In October, the company said it will close 25 of its Cassis brand stores catering to fashionable women over 40 because they weren’t pulling in enough shoppers.
The Cassis stores will be converted to the Reitmans, Smart Set and Addition Elle banners and some may be converted to RW&Co., which sells both men’s and women’s clothes.
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Reitmans (TSX:RET) will start converting the stores in its first fiscal quarter of 2013 and it may last into the following quarter.
Reitmans, which employs about 10,000 people around the country, also operates under the banners of Thyme Maternity, Penningtons in addition to its other brands.
At the end of January, the retailer operated 968 stores across Canada.
Cassis was the newest banner in the Reitmans group and catered to the 40-something woman, selling both urban casual and career clothing. Cassis had stores mainly in Alberta, Ontario, Quebec and New Brunswick.
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