DLMAF - Dollarama stock dips despite earnings beat
2023-06-07 12:28:22 ET
Canadian discount retailer Dollarama ( OTCPK:DLMAF ) saw its shares dip on Wednesday even after topping Q1 expectations.
The Montreal-based retailer reported C$0.63 in earnings per share for the quarter alongside a 20.6% rise in revenue to C$1.29B. Analysts had anticipated C$0.59 in earnings per share on C$1.24B in revenue. Comparable store sales also rocketed 17.1% higher during the quarter as compared to Q1 2023.
“Canadians from all walks of life continue to respond positively to our compelling value proposition and affordable product mix. In the context of persistent inflationary pressure, we delivered a 17% increase in comparable store sales in the first quarter of Fiscal 2024,” CEO Neil Rossy said. “The first quarter also marked the opening of our 1,500th Dollarama store, a significant milestone as we pursue our target of 2,000 stores across Canada by 2031.”
A net total of 8 new stores were opened during Q1. Inventory levels decreased by about $20M from the end of the previous fiscal year.
Despite the strong report, shares of Dollarama ( OTCPK:DLMAF ) dipped about 2% during Wednesday’s trading.
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Dollarama stock dips despite earnings beat