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Inflation's pressure on consumers helps Dollarama profits grow

Jonathon Brown Jonathon Brown, The Market Online
0 Comments| September 13, 2023

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  • Dollarama (TSX:DOL) stock has been on a roll lately and rose even further after its fiscal Q2 2024 results
  • The discount retailer’s reported sales had increased by 19.6 per cent to C$1,455.9 million, with a 15.5 per cent increase in comparable store sales
  • The fiscal 2024 guidance range for comparable store sales growth increased to between 10.0 per cent to 11.0 per cent for fiscal 2024, compared with between 5 per cent and 6 per cent estimated previously
  • Dollarama Inc. last traded at C$89.36 per share

Dollarama (TSX:DOL) stock has been on a roll lately and rose even further after its fiscal Q2 2024 results.

As inflation rises, consumers are looking for cheaper deals. The discount retailer reported sales had increased by 19.6 per cent to C$1,455.9 million, with a 15.5 per cent increase in comparable store sales. Operating income increased by 27.6 per cent to $366.8 million, or 25.2 per cent of sales.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 23.8 per cent to $457.2 million, or 31.4 per cent of sales, which represents an improvement of 1.0 per cent compared to the same period last year.

The fiscal 2024 guidance range for comparable store sales growth increased to between 10.0 per cent to 11.0 per cent for fiscal 2024, compared with between 5 per cent and 6 per cent estimated previously.

“Our performance year-to-date for this fiscal year reflects our differentiated ability to provide compelling value across our broad product mix and a consistent shopping experience,” the company’s president and CEO, Neil Rossy said in a news release. “Dollarama continues to deliver unparalleled value to a growing number of consumers seeking affordable everyday products at low price points, and we expect this strong demand to persist through the second half of the year in the current macro-economic context.”

Dollarama Inc. offers various assortment of general merchandise, consumable products, and seasonal items.

Dollarama Inc. last traded at C$89.36 per share. Dollarama stock has grown 5.6 per cent over the past three months and is up 15.8 per cent compared with this time last year.

Join the discussion: Find out what everybody’s saying about this stock on Dollarama’s Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.




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