News Column

Dollarama says profit, sales up despite impact of bad winter weather

June 12, 2014

The Canadian Press

MONTREAL - Dollarama Inc. (TSX: DOL) says sales rose by almost 12 per cent to $501.1 million in the first quarter, despite challenging weather conditions that affected consumer traffic to stores during the winter and spring.

Sales were up from $448.1 million in the year-ago period, and contributed to a net profit of $53.2 million, up from $45.6 million in the same quarter last year.

On a per share basis, the earnings for the first quarter ended May 4 amounted to 78 cents, up from 62 cents last year.

The discount retailer said the positive results were driven by the addition of new stores over the past twelve months, strong Easter sales and continued sales growth.

In the quarter, 62 per cent of sales originated from products priced higher than $1, compared to 58 per cent in the corresponding quarter last year.

"We are satisfied with the growth reflected in our first quarter results given the continuing adverse impact of difficult weather conditions on store traffic this winter and spring," said Dollarama chairman and chief executive Larry Rossy.

"Our Easter sales were very good and, with the opening of 25 net new stores during the quarter, we remain on track to expand our store network across Canada by 70 to 80 net new stores this year."

Dollarama is Canada's leading dollar store operator with 899 locations across the country.

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Source: Canadian Press DataFile

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