BMTC Group Records Third Quarter Loss for 2023

BMTC Group, parent company to Quebec’s largest full-line furniture retailer, recorded a net loss for its fiscal third quarter as revenues fell dramatically in the wake of inflationary pressures on almost everything consumers buy and rising interest rates on their debts.

For the three months ending Oct. 31, BMTC reported revenues of $140.1 million, a 20.2 per cent decrease from the $175.6 million sold in the comparable period a year ago.

Unlike this country’s other publicly traded furniture companies — Leon’s Furniture Ltd., Sleep Country Canada Holdings and Dorel Industries — BMTC’s fiscal year ends Jan. 31.

The company declared a net loss of $8.5 million or 25 cents per share for the period, reversing the comparable period’s net gain of $13.8 million or 42 cents per share.

For the nine months also ending Oct. 31, revenues were $444.3 million, down 22.1 per cent from $570.2 million for the same period a year ago.

Net earnings were $32.9 million or $1 per share, compared to $28.9 million or 87 cents per share, an uptick of 14.9 per cent on a per share basis.

During its fiscal first quarter, BMTC sold its Montreal distribution centre for $66.5 million, resulting in an after-tax of $51 million or $1.54 per share.

This past May, BMTC converted its retail operations — both online and brick-and-mortar — to the Tanguay banner, renovating all Brault & Martineau and three of its existing EconoMax stores. The company also created a secondary banner, Liquida Tanguay L’Entrepôt, specializing in clearance items as well as new entry-level products.

The company also closed five EconoMax stores, those in Kirkland, Sainte-Thérèse, Brossard, Ste-Eustache and LaSalle, reducing its total store count to 25 from 32 at the end of its last fiscal year.

In its report to shareholders, senior management said the decision to convert was made “to provide a better product and service offering as a unique customer experience in its market.”

The total cost of the conversation is valued at $28 million, at least half of which was charged to the fiscal third quarter, with the balance to be absorbed in the fiscal year that ends next January.

BMTC also created a new subsidiary, which in partnership with Urbania, will develop its property in Laval, and build a five-tower apartment complex with approximately 1,200 units. A similar project is planned for company-owned real estate in Sainte-Thérèse, too.

In her report to shareholders, BMTC president and CEO Marie-Berthe Des Groseillers said the company is focusing on growing online sales through the improvement of its digital platform, particularly its live chat initiative. This is essential to BMTC’s drive to increase its market share.

Des Groseillers admitted it is increasingly difficult to predict the level of future consumer spending, acknowledging it will be tough to generate the sales and earnings seen during the pandemic.

“This is partly explained by the high rate of inflation in terms of the cost of food, the cost of gas and the rise in interest rates, which has a direct impact on consumer spending,” she said.