Dollarama Inc. (TSX: DOL) today reported a significant increase in sales, net earnings and earnings per share for the third quarter ended November 1, 2015. Diluted net earnings per share rose 41.8% to $0.78.
Compared to the Third Quarter of Fiscal 2015
- Sales increased by 13.0% to $664.5 million;
- Comparable store sales grew 6.4%, over and above 5.9% the previous year;
- Gross margin was 40.0% of sales compared to 36.8% of sales;
- EBITDA grew 34.8% to $154.8 million, or 23.3% of sales, compared to 19.5% of sales;
- Operating income grew 35.8% to $142.6 million, or 21.5% of sales, compared to 17.9% of sales; and
- Diluted net earnings per common share increased by 41.8%, from $0.55 to $0.78.
“We have done very well so far this year with managing the significant deterioration of the Canadian dollar through the use of foreign exchange contracts in order to hedge the cost of merchandise paid for in U.S. dollars. Certainly our pricing strategy has contributed to some of the uplift seen in the gross margin so far in Fiscal 2016. We expect our performance across key indicators, such as EBITDA margin and gross margin, to normalize and return to historical levels in Fiscal 2017, as we look to continually reinvest in the value proposition offered to our customers. Looking at store network development, we surpassed the 1000-store mark this quarter as anticipated. With 50 net new stores opened over the last three quarters, we remain on track to open a total of 70 to 80 net new stores by fiscal year end,” stated Larry Rossy, Chairman and Chief Executive Officer of Dollarama.
SOURCE Dollarama Inc.