- Comparable sales grew by 5.6%, missing the estimate of 5.69% and significantly down from last year’s 17.1% growth.
- Sales matched the estimate at C$1.41 billion, representing an 8.6% year-over-year increase.
- Gross margin stood at 43.2%, beating the estimate of 43% and improving from 42.2% last year.
- EBITDA reached C$417.7 million, up 14% year-over-year and surpassing the estimate of C$409 million.
- Earnings per share (EPS) were C$0.77, which is higher than last year’s C$0.63 and above the estimate of C$0.74.
- Net income was C$215.8 million, a 20% increase from the previous year, beating the estimate of C$206.8 million.
- Total number of stores reached 1,569, just one short of the estimate of 1,570.
- The company attributes sales growth to higher demand for core consumables and other everyday essentials.
- Analysts’ consensus: 6 buy ratings, 6 hold ratings, and 0 sell ratings.
A look at Dollarama Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
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 strong momentum score of 5 indicating positive market sentiment towards the company. Dollarama’s growth potential is rated highly at 4, reflecting expectations for expansion and development in the future. However, the company scores lower on value, dividend, and resilience with scores of 2, suggesting areas for improvement in terms of value proposition, dividend payouts, and ability to withstand economic fluctuations.
Dollarama Inc. is an online marketplace based in Canada offering a wide range of products and delivery services. With a favorable growth outlook and strong momentum, the company is positioned for continued success in the market, although attention may be needed to enhance value, dividends, and resilience in order to further strengthen its overall performance and attractiveness to investors.
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.
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