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Industry NewsDollarama sales up 5.5% in fiscal 2022 Q3

Dollarama sales up 5.5% in fiscal 2022 Q3


Dollarama Inc. sales increased 5.5 per cent to $1,122.3 million in its fiscal 2022 third quarter. Comparable store sales increased 0.8 per cent and above 7.1 per cent growth in the prior, and averaged 3.9 per cent per year over a two-year period.

“We delivered a solid performance across key metrics in the third quarter of Fiscal 2022. We are pleased with our comparable store sales growth, both year-over-year following exceptionally strong seasonal sales in the same quarter last year, and on a two-year average basis. We also generated strong EPS growth and an industry-leading gross margin despite the various headwinds impacting the retail sector,” says president and CEO Neil Rossy.

“Our teams have worked nimbly to ensure that we entered the fourth quarter with well-stocked stores offering compelling value on everyday and seasonal goods to Canadians from all walks of life ahead of the holidays. Our ability to adapt in the second year of the pandemic in what continues to be a complex environment further reinforces the resilience of our unique business model, the relevance of our brand and strong value proposition to Canadian consumers.

According to industry analysts, Dollarama is expected to continue to perform well for investors. According to online stock analyst, “Dollarama’s earnings growth are expected to be in the teens in the upcoming year, indicating a solid future ahead.”

Sales for the third quarter of fiscal 2022 increased by 5.5 per cent to $1,122.3 million, compared to $1,064.2 million in the corresponding period of the prior fiscal year. This increase is attributable to the growth in the total number of stores over the past twelve months, from 1,333 on November 1, 2020, to 1,397 stores on October 31, 2021, and to an increase in comparable store sales driven by strong Halloween sales.

Comparable store sales consisted of a 2.8 per cent decrease in average transaction size and a 3.7 per cent increase in the number of transactions, which Dollarma says reflects a gradual reversal in consumer shopping patterns compared to the prior year. Over a two-year period, comparable store sales growth for the third quarter averages 3.9 per cent per year.

Outlook and COVID-19 impact

Dollarama says it remains difficult to forecast, so in its reporting it has limited guidance to its fiscal 2022. It expects to open 60 to 70 stores in the period and estimates capital expenditure will be between $160.0 million to $170.0 million.



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