Dollarama beat market revenue expectations for its fourth quarter, driven by a strong demand for affordable goods.
Revenue increased to $1.47 billion from $1.22 billion for the same period last year, beating market analyst expectations of $1.39 billion.
Comparable store sales grew 15.9 per cent in the quarter and 12.0 per cent for fiscal 2023. Sale increased by 20.3 per cent to $1,473.2 million.
“Our outstanding performance in Fiscal 2023, including a 12 per cent increase in comparable store sales and EPS growth of 27 per cent, further reinforces the relevance of our value retail concept for consumers, the enduring strength of our unique business model and our disciplined execution,” says Neil Rossy, president and CEO.
“I would like to recognize and thank every Dollarama team member – from our stores to our logistics operations and head office – for their continued commitment to providing consumers with convenience and the best relative value on every dollar they spend in our stores. In the context of continued macro-economic uncertainty and inflationary pressures on consumers, our priority is to maintain our value promise to Canadians from all walks of life in fiscal 2024.”
Outlook
Dollarama says it expects to benefit from strong demand for its “affordable everyday items in the context of continued inflationary pressures on consumers.” The discount chain says it expects demand trends will “normalize” through the second half of its fiscal year.
While Dollarama says it expects higher sales of lower-margin consumable products to carry over into fiscal 2024, “lower freight and logistics costs on imported goods are expected to positively impact gross margins. Wage pressures on SG&A are expected to be more substantial in fiscal 2024 compared to the prior year, partially offset by the positive impact of scaling as well as ongoing efficiency and labour productivity initiatives.”
