Dollarama overall sales increased 13 per cent to $952.4 million in its fiscal 2022, first quarter, with comparable store sales growing by 5.8 per cent, but the company warned that continued uncertainty due to COVID-19 restrictions could impact its second quarter results.
"The Dollarama team continues to demonstrate its ability to adapt in order to serve Canadians safely and with purpose. Dollarama delivered another solid quarter, with a double-digit increase in sales, strong comparable store sales growth and industry-leading margins. This is despite additional COVID-19 restrictions implemented in early April, including measures directly impacting retailers across Ontario," stated Neil Rossy, president and CEO. "Despite the near-term impact of COVID-19 restrictions which remain in place, our solid momentum in the first two months of the first quarter reflects the relevance of our unique business model and compelling product offering to Canadian consumers from all walks of life," Neil Rossy added.
"I am also pleased with the progress we have made integrating sustainability initiatives company-wide over the last two years and amidst the pandemic, as outlined in our latest ESG report published this morning. We are proud of our achievements, committed to our goals, and motivated as a team to continue integrating ESG across our business and to meet the expectations of our stakeholders," concluded Neil Rossy.
The ongoing COVID-19 pandemic and various measures taken by provincial governments continued to impact consumer shopping patterns and Dollarama's results in the first quarter of fiscal 2022. Also, the comparable period in the prior year was marked by the onset of the pandemic, when the corporation experienced a surge in transactions in early March of 2020 as customers purchased higher volumes of consumables than historically, followed by a sharp decline in transactions as a result of increasingly strict measures imposed by public health authorities across Canada.
The increase in sales is attributable to the growth in the total number of stores over the past twelve months, from 1,301 stores on May 3, 2020 to 1,368 stores on May 2, 2021, and an increase in comparable store sales driven by higher sales of seasonal items, including Easter holiday and spring-summer products. This is compared to higher sales of consumable products and lower sales of seasonal items in the first quarter of Fiscal 2021 at the onset of the pandemic.