Proactive Investors - Dollarama said it is raising its dividend by 28% as the Canadian dollar store chain reported higher-than-expected revenue and profit for the fourth quarter of fiscal 2023.
For the quarter ended January 29, 2023, the company posted a 20.3% increase in revenue to $1.47 billion from $1.23 billion in the year-ago quarter, ahead of the consensus analyst expectation per FactSet of $1.4 billion.
Net profit rose to $261 million, topping both last year’s $220 million and analysts’ expectation of $246 million.
Diluted earnings per share (EPS) rose 23% from $0.74 to $0.91, again exceeding expectations of EPS of $0.85.
For the full-year fiscal 2023, the company reported a 16.7% increase in revenue and a 26.6% increase in diluted EPS.
The company attributed its revenue jump in 4Q and for the full year to store number growth in the past 12 months, with 65 new stores opened bringing its total store count to 1,486, and the increase in comparable store sales, which rose by 15.9% in 4Q.
“Our outstanding performance in fiscal 2023, including a 12% increase in comparable store sales and EPS growth of 27%, further reinforces the relevance of our value retail concept for consumers, the enduring strength of our unique business model and our disciplined execution,” commented Dollarama CEO Neil Rossy.
Dollarama’s Toronto-listed shares had added 1.2% at C$79.42 on Wednesday morning.