Canadian value retailer Dollarama, Inc. (DOL.TO) announced a notable increase in net earnings for the first quarter of fiscal 2025, rising to $215.8 million or $0.77 per share, compared to $179.9 million or $0.63 per share in the same period last year.
This performance surpassed the expectations of nine analysts surveyed by Thomson Reuters, who had projected earnings of $0.76 per share for the quarter. Typically, analyst estimates exclude special items.
Sales for the quarter saw an 8.6 percent increase, reaching $1.41 billion, up from $1.29 billion in the previous year's corresponding quarter. Comparable store sales grew by 5.6 percent, aligning with analysts’ revenue expectations of $1.41 billion for the quarter.
Looking forward to fiscal 2025, Dollarama anticipates comparable store sales growth to be in the range of 3.5 to 4.5 percent.
In addition, Dollarama disclosed an increase in its equity interest in the Latin American value retailer Dollarcity by 10 percent, bringing its total equity stake to 60.1 percent. The company's expansion now includes operations in Mexico.
The long-term store target for Dollarcity has been revised upward from 850 stores by 2029 to 1,050 stores by 2031 across its current four markets.
Furthermore, Dollarama's board of directors has approved a quarterly cash dividend of $0.0920 per common share. This dividend is scheduled for payment on August 2, 2024, to shareholders recorded by the close of business on July 5, 2024.
