2023-03-29 07:32:31 ET
Dollarama ( OTCPK:DLMAF ) topped earnings expectations on Wednesday as Canadian consumers apparently flocked to the discount retailer.
For the fiscal fourth quarter, the Montreal-based chain notched C$0.91 in earnings per share on C$1.47B in revenue. Analysts had anticipated C$0.85 in EPS on C$1.40B in revenue. Comparable store sales growth of 15.9% as compared to the prior year quarter also far outpaced the 9.57% consensus estimate and a 44.6% gross margin edged the 44.4% analyst expectation.
“Our outstanding performance in Fiscal 2023, including a 12% increase in comparable store sales and EPS growth of 27%, further reinforces the relevance of our value retail concept for consumers, the enduring strength of our unique business model and our disciplined execution,” CEO Neil Rossy said. “In the context of continued macroeconomic uncertainty and inflationary pressures on consumers, our priority is to maintain our value promise to Canadians from all walks of life in Fiscal 2024.”
Management expects comparable store sales growth of 5% to 6% in fiscal 2024 as the company opens 60 to 70 net new stores. Gross margin as a percentage of sales is expected to be in the range of 43.5% to 44.5%. Analysts had expected the company to add 66 new stores and forecast a gross margin of 43.7% for the full year.
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Dollarama tops earnings expectations as comp sales accelerate