Dollarama today reported increases in sales and net earnings for the second quarter of fiscal 2019, compared to the same period last year.
Sales rose 6.9 per cent to $868.5 million, above the $812.5 million recorded in Q2 2018. Comparable store sales grew 2.6 per cent over and above the 6.1 per cent growth recorded for Q2 2018.
“The rate of comparable store sales growth in the second quarter of Fiscal 2019 primarily reflects management’s decision to minimize price increases in order to deliver an even more compelling value proposition to consumers,” the company said in announcing the results. “Overall sales results were also impacted by lower sales of Canada Day seasonal and related souvenir products, sales of which were exceptionally strong in the second quarter of Fiscal 2018, driven by Canada 150 celebrations. Sales for the second quarter of Fiscal 2019 recaptured the weather related shortfall in summer seasonal product sales experienced in the first quarter of Fiscal 2019.”
Operating income increased 7.7 per cent to $206.7 million, or 23.8 per cent of sales, compared to 23.6 per cent of sales in the same period last year.
“With continued sales growth, strong margins, tight cost management and diluted earnings per share increasing over 13 per cent from the same period last year, we delivered a strong bottom line performance in the second quarter despite lower than historical comparable sales growth on the top line,” said president and CEO Neil Rossy. “Over six months into the fiscal year, we are on track for solid earnings growth in fiscal 2019 and sustained long term performance for the benefit of shareholders while maintaining our compelling value proposition to consumers.”
Dollarama opened eight net new stores in Q2, compared to 17 net new stores in the same period last year.
The company’s full announcement is available here.