Reitmans (Canada) Ltd.'s reported a 58 per cent drop in first-quarter profit on Wednesday as consumers cut back spending in the economic downturn.
The Montreal-based women's clothing retailer, whose banners include Reitmans, Smart Set and Penningtons, said it earned $7.8-million, or 11 cents a share, in the quarter ended May 2, down from $18.4-million, or 26 cents a share, a year earlier.
Overall sales rose 1.5 per cent to $231.7-million. However same store sales - the performance of stores open for at least a year - slid 0.8 per cent.
Reitmans blamed the softer same store sales on the weak economy as consumers cut back on discretionary spending.