Dollarama’s revenue and same-store sales for the first quarter of Fiscal 2019 missed Wall Street estimates, thanks in part to a prolonged winter that kept shoppers from visiting its 1000 stores across Canada.
Same-store sales rose 2.6 per cent in the last quarter, well below the 4.7 per cent analysts had predicted. The long winter also impacted sales of Dollarama’s summer seasonal product assortment by several weeks.
U.S. dollar chain Dollar Tree has been moving into Canada and says it plans to open 1000 stores here, putting increasing pressure on Dollarama, which opened 10 new stores over the last quarter, below the 13 it opened in the same period a year ago.
Dollarama’s diluted net earnings per common share increased by 12.2 per cent, to $0.92, from $0.82 in the first quarter of fiscal 2018.
Net income rose to $101.6 M, or 92 cents per share in the first quarter ended April 29, from $94.7 M, or 82 cents per share, a year earlier.
Total sales rose to $756.1 M from $704.9 M.
Analysts had predicted Dollarama would report a profit of 93 cents per share and revenue of $776.7 M.
"Despite lighter than usual summer assortment sales in the first quarter due to poor weather, we delivered another solid performance and our underlying assumptions for the full year remain unchanged," said Dollarama president and CEO Neil Rossy.