Dollarama sees green in Q1; plans new stores

Dollarama Inc. got fiscal 2017 off to a strong start.



Dollarama Inc. reported sharp increases in profit and revenue during the first quarter of fiscal 2017, and intends to open a net of 60-70 new stores by end of the year.



Net earnings soared 28% to $83.2 million from $64.8 million the same quarter a year earlier. Improvement of the gross margin and lower selling, general and administrative (SG&A) expenses as a percentage of sales helped drive net earnings growth.



Sales increased by 13% to $641.0 million, compared to $566.1 million in the corresponding period of the previous fiscal year. The increase in sales was driven growth to 1,038 stores from 972 stores, as well as same-store sales growth of 6.6%.



In this quarter, 60.5% of Dollarama’s sales originated from products priced higher than $1.25, compared to 55.8% in the corresponding quarter the previous year.



"Fiscal 2017 is off to a strong start with strong sales growth, reflecting the positive customer response to our merchandising strategies and our constant commitment to enhancing the in‑store shopping experience,” said Neil Rossy, president and CEO of Dollarama. “We are also reaping the benefits of our various technology investments in the form of productivity improvements. The pace of new store openings should accelerate throughout the year and our plan remains to open 60 to 70 net new stores by fiscal year end.”