- Dollarama reported a comparable sales increase of 4.9% for the first quarter, surpassing an estimated 3.31% growth.
- The company’s total sales reached C$1.52 billion, marking an 8.2% year-over-year increase, slightly above the expected C$1.5 billion.
- Gross margin improved to 44.2%, better than both the previous year’s 43.2% and the estimated 43.1%.
- EBITDA amounted to C$496.2 million, a 19% increase from the prior year, outperforming the estimate of C$450.8 million.
- Earnings per share rose to C$0.98, compared to C$0.77 last year, exceeding the estimated C$0.84.
- Net income was C$273.8 million, up 27% from last year and above the expected C$232 million.
- Dollarama operates 1,638 stores, a 4.4% increase from last year, slightly above the estimated 1,636 stores.
- The company attributes its strong fiscal start to solid Canadian growth, driven by sustained demand for consumables and positive seasonal product performance.
- Market sentiment includes 10 buy ratings, 5 hold ratings, and 1 sell rating.
A look at Dollarama Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts are optimistic about Dollarama’s long-term prospects, with a Smartkarma Smart Score indicating a positive overall outlook for the company. Among the factors contributing to this positive assessment are high Momentum and Growth scores, along with solid ratings for Resilience. These scores suggest that Dollarama is well-positioned to sustain its growth trajectory and adapt to changing market conditions over the long term.
Dollarama Inc., an online marketplace catering to customers in Canada, offers a wide range of products from cleaning supplies to electronics. Despite moderate scores in Value and Dividend categories, the company’s strong performance in Growth and Momentum underscores its potential for continued success. With a diverse product offering and delivery services, Dollarama appears to be on a solid path for future growth and market resilience.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
