HomeNews1Dollarama: Third-quarter profit and sales up compared with 2021

Dollarama: Third-quarter profit and sales up compared with 2021

Dollarama: Third-quarter profit and sales up compared with 2021

Dollarama Inc. reported its third-quarter profit and sales rose compared with a year ago and raised its comparable-store sales growth guidance.

The retailer says it earned $201.6 million or 70 cents per diluted share for the 13-week period ended Oct. 30 compared with a profit of $183.4 million or 61 cents per share in the same quarter last year.

Sales for the quarter totalled $1.29 billion, up from $1.12 billion a year earlier.

Comparable-store sales rose 10.8 per cent as the number of transactions climbed 10.3 per cent and the average transaction size gained 0.4 per cent.

In its guidance for the year, Dollarama says it now expects comparable-store sales growth for its current financial year to be in a range of 9.5 to 10.5 per cent compared with earlier expectations for a range of 6.5 to 7.5 per cent.

The company also narrowed its guidance for its annual gross margin as a percentage of sales to a range of 43.1 to 43.6 per cent compared with earlier expectations for a range of 42.9 to 43.9 per cent.

“Our strong performance across our key metrics year to date speaks to our commitment to providing the best year-round value on the everyday products we offer, combined with a convenient and consistent shopping experience. As inflationary pressure on the consumer persists, we expect strong demand for consumable products to continue stimulating topline growth through to the end of the fiscal year. We aim to stay true to our compelling value proposition and to meet and exceed the expectations of our customers from coast to coast,” said Neil Rossy, President and CEO.

“Subsequent to quarter end, we were pleased to enter into an agreement for the purchase of industrial properties adjacent to our existing centralized logistics operations. This will provide us with additional flexibility to support our long-term logistics needs as we pursue our target of 2,000 Dollarama stores in Canada by 2031,” added Mr. Rossy.

This article is reported by the Canadian Press.