Dollarama’s Q4 profits rise, founder and chairman to retire
Dollarama’s strong fourth quarter not only beat expectations — it marks the end of an era as the company’s founder sets to retire.
Larry Rossy, the company’s founder and chairman, announced that he will step down from the board after the June 7 annual meeting. He will remain chairman emeritus of the Montreal-based company. Stephen Gunn, who has been Dollarama’s lead director since 2009, will take over as chairman of the board. Rossy passed the baton as CEO of the company to his son, Neil Rossy, two years ago.
The company’s patriarch transitioned the company from a small Que-bec-based family chain to the dollar-store concept in 1992. Dollarama went public in 2009.
The news came amid the company reporting its fourth quarter earn-ings. For the quarter ended Jan. 28, net income grew 11.6% to (C) $162.8 million (Canadian dollars). Earnings per share increased by 16.9%, to (C) $1.45 from (C) $1.24.
Sales rose 9.8% to (C)$938.1 million, and comparable store sales grew 5.5%, compared to 5.8% growth the previous year.
During the quarter, the company opened 25 new stores, compared to 26 stores the same period a year prior.
For the fiscal year, net income was(C) $519.4 million, up from (C) $445.6 million a year ago. Sales increased 10.2% to (C) $3.27 billion, and comparable store sales grew 5.5%, compared to 5.8% growth the previous year.
For the year, the company opened 65 net new stores, which was in line with the company’s guidance range confirmed in December 2017.
Looking ahead, Dollarama will increase the size of its distribution center located in the Town of Mount Royal, Quebec, by approximate-ly 50%. Upon completion, which is planned for the end of fiscal 2020, the building will total 500,000 sq. ft.
The expansion will support the company’s long-term growth strategy and its goal of operating 1,700 stores by 2027. The distribution center will continue to operate throughout the construction phase.
The company will also purchase the distribution center, which was previously leased from an entity controlled by the Rossy family. No external financing was required to complete these transactions. This purchase will enable the company to own its expanded distribution operations in their entirety.
In addition to expanding its distribution center, in fiscal 2019, the company also plans to open between 60 and 70 new locations across Canada.
Larry Rossy, the company’s founder and chairman, announced that he will step down from the board after the June 7 annual meeting. He will remain chairman emeritus of the Montreal-based company. Stephen Gunn, who has been Dollarama’s lead director since 2009, will take over as chairman of the board. Rossy passed the baton as CEO of the company to his son, Neil Rossy, two years ago.
The company’s patriarch transitioned the company from a small Que-bec-based family chain to the dollar-store concept in 1992. Dollarama went public in 2009.
The news came amid the company reporting its fourth quarter earn-ings. For the quarter ended Jan. 28, net income grew 11.6% to (C) $162.8 million (Canadian dollars). Earnings per share increased by 16.9%, to (C) $1.45 from (C) $1.24.
Sales rose 9.8% to (C)$938.1 million, and comparable store sales grew 5.5%, compared to 5.8% growth the previous year.
During the quarter, the company opened 25 new stores, compared to 26 stores the same period a year prior.
For the fiscal year, net income was(C) $519.4 million, up from (C) $445.6 million a year ago. Sales increased 10.2% to (C) $3.27 billion, and comparable store sales grew 5.5%, compared to 5.8% growth the previous year.
For the year, the company opened 65 net new stores, which was in line with the company’s guidance range confirmed in December 2017.
Looking ahead, Dollarama will increase the size of its distribution center located in the Town of Mount Royal, Quebec, by approximate-ly 50%. Upon completion, which is planned for the end of fiscal 2020, the building will total 500,000 sq. ft.
The expansion will support the company’s long-term growth strategy and its goal of operating 1,700 stores by 2027. The distribution center will continue to operate throughout the construction phase.
The company will also purchase the distribution center, which was previously leased from an entity controlled by the Rossy family. No external financing was required to complete these transactions. This purchase will enable the company to own its expanded distribution operations in their entirety.
In addition to expanding its distribution center, in fiscal 2019, the company also plans to open between 60 and 70 new locations across Canada.