- Dollarama’s comparable sales grew by 3.3%, surpassing the estimated growth of 3.05%, though lower than last year’s 11.1% increase.
- Total sales reached C$1.56 billion, marking a 5.7% year-over-year increase and meeting market expectations.
- The gross margin stood at 44.7%, slightly below last year’s 45.4%, and below the estimated 45%.
- EBITDA increased by 6.4% year-over-year to C$509.7 million, exceeding the forecast of C$507.8 million.
- Earnings per share (EPS) were consistent with the estimates at C$0.98, up from C$0.92 in the previous year.
- Net income rose by 5.7% to C$275.8 million, slightly missing the estimate of C$276.4 million.
- The company opened 18 net new stores, meeting expectations, bringing the total number of stores to 1,601, a 3.9% increase from last year.
- Management expressed satisfaction with the third-quarter financial results amid a market characterized by normalization and cautious consumer spending.
- Analyst recommendations for Dollarama stock included 8 buys, 4 holds, and 1 sell.
A look at Dollarama Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
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
Based on Smartkarma Smart Scores, Dollarama is positioned for strong long-term growth potential. With a Growth score of 4 and a Momentum score of 4, the company is showing favorable trends in both expansion and market performance. Additionally, its diverse product offerings in categories like cleaning, food, and electronics make it well-suited to meet various consumer needs.
While Dollarama’s Value and Dividend scores are at 2, indicating some room for improvement in terms of valuation and dividend payouts, its Resilience score of 2 suggests that the company may need to focus on enhancing its ability to weather economic uncertainties. Overall, Dollarama’s strong Growth and Momentum scores position it well for future success in the Canadian market.
### Dollarama Inc. operates as an online marketplace. The Company offers cleaning, school, office, home, kitchen, food, health, beauty, hardware, electronics, toys, and pets products, as well as provides delivery services. Dollarama serves customers in Canada. ###
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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