Dollarama Inc.
Looking for a new DOL-lar counter: CFO to accept a new opportunity
TSX: DOL | CAD 87.24 | Outperform | Price Target CAD 101.00
Sentiment: Neutral
News: DOL announced that CFO J.P. Towner intends to step down to pursue another career opportunity. Precise timing not included in the release, but from an investor perspective it is important to note that J.P. will remain through the filing of the Q2/F24 results in mid-September.
With our long history of DOL, we do not believe the change signals anything untoward at DOL, rather underscores the strength of Mr. Towner, who joined DOL in November of 2020 as future CFO, taking over officially on March 1, 2021, replacing prior CFO Michael Ross, who joined shortly after IPO.
• Neutral to share price: We are disappointed to see J.P. leave DOL as he quickly integrated into the long-tenured DOL executive team and was among the key players who were extremely effective in shepherding DOL and investor perception/understanding of the rapidly evolving retail backdrop through both the lengthy COVID and supply chain challenges of 2021 through to today. J.P. similarly and rapidly built strong relationships with the investment community in his role as the face of DOL for the street. We will miss J.P., and wish him all the best in his new role.
• Orderly transition: While no firm date was announced in the release, J.P. will remain at DOL for at least another two months, and while DOL runs a lean management team, we are confident that there will be strong hands on the wheel during the transition period.
• Expect DOL to attract extremely high-quality candidates for the CFO role: As one of Canada's major retailers and the only one of its size with a strong organic growth opportunity, we would expect the role to attract a high level of interest.