Dollarama said that its first-quarter results were adversely affected by challenging weather conditions, but the company reported continued growth in sales and net earnings.
Canada's leading dollar store operator of 899 locations across the country reported sales for the quarter of $501.1 million, an 11.8% increase from $448.1 million in the prior-year periord. The increase in sales was driven by the growth in the number of stores in the past 12 months and strong Easter sales and continued organic sales growth driven by comparable store sales growth of 3.3%.
Comparable store sales growth for the quarter consisted of a 3.7% increase in average transaction size, partially offset by a 0.4% decrease in the number of transactions.
Net earnings increased to $53.2 million, or $0.78 per diluted share, compared to $45.6 million, or $0.62 per diluted share, for the corresponding period last year.
In the quarter, 62% of the company’s sales originated from products priced higher than $1 compared to 58% in the corresponding quarter last year. Debit card penetration also increased, as 42% of sales were paid with debit cards compared to 40% in the corresponding period of the previous fiscal 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. 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," said chairman and CEO Larry Rossy.