PEOPLE ARE BUYING MORE AT A GIVEN TIME.
why the industry is expected to continue growing,” said Neil Linsdell, an analyst with Industrial Alliance Securities, in a note to clients. Linsdell estimates the top six dollar store chains in Canada serve about 21,462 people per store; the top five U.S. chains serve about 11,293 people per store.
Dollarama operates 1,095 locations across Canada, and plans to open between 60 to 70 new outlets this year, bucking a widespread downsizing trend happening in broader retail.
For the period ended Jan. 29, earnings rose 17 per cent to $146.1 million, or $1.24 per share, up from $124.8 million, ($1), in the same period a year ago. Analysts had been anticipating earnings per share of $1.12, according to Thomson Reuters.
Sales climbed 11.5 per cent to $854.5 million, compared with $766.5 million a year ago.
Same-store sales, which strip out the impact of added square footage, climbed 5.8 per cent, while the average basket size at the till was 7.8 per cent higher than a year ago.
Rossy said executives are not focused on expanding Dollarama outside of Canada at this time.
“Canada remains our one and only priority,” he told analysts.