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Dollarama’s 4th quarter sales, profits rise
April 9th, 2014
MONTREAL – Canadian dollar store operator Dollarama Inc. said its fiscal fourth quarter profit rose nearly 8% on higher sales, as the company increased its store count by 27 in the period.
The financial results topped analysts’ expectations.
Dollarama also said it had raised its quarterly dividend 14% to 16 cents a share.
On Wednesday the company reported net income of $83 million (US$76 million) in the three months ended February 2.
Sales rose about 4% to $582 million, despite the fact that the fourth quarter in fiscal 2014 had 13 weeks compared to 14 weeks a year earlier.
Sales were up even though the retailer was forced to temporarily close about 80 stores in December because of severe weather across central and eastern Canada.
The closures helped push down December same-store sales by 7.5%, the company said, though same-store sales rose 1.1% in the quarter.
Dollarama is Canada's largest operator of dollar stores, with 874 locations in all 10 provinces selling an array of general merchandise for $3 or less. The company purchases directly from more than 900 low-cost suppliers.