Proactive Investors - Dollarama Inc (TSX:TSX:DOL) has reported first-quarter sales that beat expectations as it opened additional stores and more Canadians felt the pinch due to inflationary pressure.
The Canadian dollar store chain posted a 21% increase in sales to $1.29 billion for the quarter ended April 30, 2023, above the C$1.25 billion expected by analysts. Comparable store sales grew 17%, with 21 net new stores opened over the quarter.
Diluted earnings per share came in 29% higher at $0.63 and its board has approved a quarterly cash dividend of $0.0708 per common share.
"Canadians from all walks of life continue to respond positively to our compelling value proposition and affordable product mix,” the company’s president and CEO Neil Rossy said in a statement.
“In the context of persistent inflationary pressure, we delivered a 17% increase in comparable store sales in the first quarter of Fiscal 2024. The first quarter also marked the opening of our 1,500th Dollarama store, a significant milestone as we pursue our target of 2,000 stores across Canada by 2031.”
The company has kept its annual guidance ranges for fiscal 2024 unchanged.
Dollarama’s Toronto-listed shares added 3% to C$85.22 shortly after the market opened on Wednesday morning.