Dollarama sales increased 2 per cent to $844.8 million for the first quarter of Fiscal 2021 compared to $828.0 million in the same quarter last year.
While the increase beat analysts’ estimates, which predicted sales would climb to $839.8 million, the company says sales growth was offset by increased costs from pandemic measures, including temporary store closures, reduced opening hours, limited customer access and a temporary 10 per cent wage increase for staff.
“Our first quarter results reflect the direct and indirect effects of COVID-19 while demonstrating that Dollarama adapted quickly to an unprecedented situation in order to serve Canadians from coast to coast. This was made possible by the dedication of our employees who adopted new work processes and safety measures, and our resilient business model," said Neil Rossy, president and CEO.
Comparable store sales excluding temporarily closed stores grew 0.7 per cent the Q1 2021. This include a 22.6 per cent basket increase and 17.6 per cent traffic decline in the quarter. As at June 8, 2020, 32 Dollarama stores were temporarily closed and 246 were operating with at least a 10 per cent reduction in opening hours.
Deemed an essential business, Dollarama saw higher demand for basic products, including cleaning supplies and packaged foods, in late March and early April, as most of its stores remained open.
Dollarama did not provide fiscal 2021 outlook, citing the COVID-19 pandemic.