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Reitmans (Canada) (TSXV:RET.A) Operating Margin % : 9.98% (As of Jul. 2024)


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What is Reitmans (Canada) Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Reitmans (Canada)'s Operating Income for the three months ended in Jul. 2024 was C$21.5 Mil. Reitmans (Canada)'s Revenue for the three months ended in Jul. 2024 was C$215.6 Mil. Therefore, Reitmans (Canada)'s Operating Margin % for the quarter that ended in Jul. 2024 was 9.98%.

The historical rank and industry rank for Reitmans (Canada)'s Operating Margin % or its related term are showing as below:

TSXV:RET.A' s Operating Margin % Range Over the Past 10 Years
Min: -15.28   Med: 0.72   Max: 6.39
Current: 3.51


TSXV:RET.A's Operating Margin % is ranked worse than
50.95% of 1105 companies
in the Retail - Cyclical industry
Industry Median: 3.61 vs TSXV:RET.A: 3.51

Reitmans (Canada)'s 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Reitmans (Canada)'s Operating Income for the three months ended in Jul. 2024 was C$21.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2024 was C$27.9 Mil.


Reitmans (Canada) Operating Margin % Historical Data

The historical data trend for Reitmans (Canada)'s Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Reitmans (Canada) Operating Margin % Chart

Reitmans (Canada) Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.35 -15.28 6.39 5.83 2.88

Reitmans (Canada) Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.79 3.69 0.23 -0.73 9.98

Competitive Comparison of Reitmans (Canada)'s Operating Margin %

For the Apparel Retail subindustry, Reitmans (Canada)'s Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Reitmans (Canada)'s Operating Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Reitmans (Canada)'s Operating Margin % distribution charts can be found below:

* The bar in red indicates where Reitmans (Canada)'s Operating Margin % falls into.



Reitmans (Canada) Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Reitmans (Canada)'s Operating Margin % for the fiscal year that ended in Jan. 2024 is calculated as

Operating Margin %=Operating Income (A: Jan. 2024 ) / Revenue (A: Jan. 2024 )
=22.925 / 794.688
=2.88 %

Reitmans (Canada)'s Operating Margin % for the quarter that ended in Jul. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jul. 2024 ) / Revenue (Q: Jul. 2024 )
=21.508 / 215.571
=9.98 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Reitmans (Canada)  (TSXV:RET.A) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Reitmans (Canada) Operating Margin % Related Terms

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Reitmans (Canada) Business Description

Traded in Other Exchanges
Address
155 Wellington Street West, 40th Floor, Toronto, ON, CAN, M5V 3J7
Reitmans (Canada) Ltd is an apparel retailer based in Canada. Its main business is the sale of ladies' specialty apparel to consumers. The product offering comprises Tops, Bottoms, Dresses, Coats and Jackets, Blazers, Lingerie and Sleepwear, among others. It also sells accessories such as Scarves, Bags, Belts, Sunglasses and others. The company operates an e-commerce website shopping for all its banners. Some of its revenue sources are from the sale of merchandise, customer loyalty award programs and sale of gift cards. The group offers its products through the retail banners of Reitmans, Penningtons and RW & CO. The Company's operating segments, operate in the women apparel business, in Canada.

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