Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Dollarama continues its winning ways as it reports Q2 resultsWednesday, September 16, 2015 > 10:18:58
Dollarama's formula continues to pay off as it reported better-than-expected quarterly sales and profit results during the second quarter. Benefiting from a sales shift to somewhat higher priced items, Dollarama saw a 14 per cent sales increase in fiscal Q2.
• Dollarama’s net income increased to $95.5 million, or 74 cents per share, in the quarter ended August 2 from $68.9 million, or 51 cents per share, a year earlier.
• Total sales rose 14 per cent to $653.3 million. Analysts on average had expected a profit of 61 cents per share and sales of $562.9 million, according to Thomson Reuters I/B/E/S.
• The company reported that it saw a rise (from two-thirds to three-quarters) in the number of items sold for more than one dollar, which helped drive same store sales up by 7.9 per cent.
• The average value per transaction increased 6.2 per cent and the number of transactions rose 1.5 per cent.
• The store count has risen to 917 locations from 828 in Q2 last year.
• The company announced an increase in its quarterly dividend to 9 cents per share from 8 cents.
Notable Quote on why Dollarama isn't selling groceries:
"For me, the future is the present. I am very happy with our offering today. You have seen so many American dollar stores go to consumables, (and) I guess you can go to consumables, (but) we are not interested in doing that.
I think the grocery industry here is very mature and very competitive. I think the offering that we have today and the categories we have, are exactly what the customers expect and we don't want to transition our store into a grocery store, absolutely not. We like the margins we are making and (are) not favourable to the margins of the grocery industry".
– Larry Rossy, CEO, Dollarama