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    DOL   CA25675T1075


Delayed Toronto Stock Exchange  -  04:00 2022-06-24 pm EDT
74.95 CAD   +0.97%
06/10DOLLARAMA : Investor Presentation – Q1-FY2023
06/09BMO Maintains Outperform on Dollarama After Strong Q1, Forecasts FY SSS of 6%
06/09Scotiabank Notes Dollarama's Q1 Beat, Says Delivers Solid Operating Performance
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Dollarama says its new $5 price tag will help offset inflation and stock new products

03/30/2022 | 12:57pm EDT

Canada's largest dollar store is introducing a new $5 price tag as it looks to recoup higher costs and bring in new products.

Dollarama Inc. said Wednesday the roll out of additional price points up to $5 will help the retail chain maintain and enhance its product assortment and value.

"There will be a gradual ramp up starting mid-year and becoming more noticeable through the second half of the year," Neil Rossy, Dollarama president and CEO, said during a call with analysts.

"This brings additional flexibility to manage cost pressures in a heightened inflationary environment."

But the store is "extremely sensitive to this not simply being a markup tool," he added.

"It enables us to deepen our broad and compelling product assortment," Rossy said. "It allows us to bring in goods that we've never been able to buy because they weren't in our price range."

His comments came as the retailer raised its dividend and reported its fourth-quarter profit and sales rose compared with a year ago.

Dollarama hiked its quarterly dividend by 10 per cent to 5.53 cents per share, up from 5.03 cents per share.

The company reported a profit of $220 million or 74 cents per diluted share for the quarter ended Jan. 30 compared with a profit of $173.9 million or 56 cents per diluted share a year earlier.

Sales totalled $1.22 billion, up from $1.1 billion in the same quarter last year, helped by an increase in the number of stores and a 5.7 per cent uptick in comparable store sales.

Looking forward, Dollarama said it expects to benefit from a more upbeat sales environment in the coming months compared with the same period last year when pandemic restrictions limited non-essential shopping.

However, the company cautioned that supply chain and other inflationary pressures are expected to be felt more this year.

"Our procurement and logistics teams have been working relentlessly to ensure that stores are well-stocked, especially from a seasonal perspective," Rossy said.

The challenge isn't supply but rather getting goods into Dollarama's warehouses and on store shelves, he said.

"The supply is really very stable," Rossy said. "It's more a question of logistics challenges between the supply and the store and that involves mostly overseas challenges and port challenges (and) a little bit of trucking challenges."

Still, Dollarama has an ample buffer built into its business model, which means even if seasonal products arrive at the company's warehouses later than usual they will still hit store shelves on time, he said.

"We can cover these issues and mitigate those risks better than most," Rossy said.

Meanwhile, Dollarama said it expects its new warehouse in Laval, Que., to open by the end of its current fiscal year, increasing its storage capacity and supporting its long-term target of 2,000 stores in Canada by 2031.

Dollarama opened 24 net new stores in the quarter, for a total of 1,421 stores at the end of January.

This report by The Canadian Press was first published March 30, 2022.

Companies in this story: (TSX:DOL)

© 2022 The Canadian Press. All rights reserved., source Canadian Press DataFile

All news about DOLLARAMA INC.
06/10DOLLARAMA : Investor Presentation – Q1-FY2023
06/09BMO Maintains Outperform on Dollarama After Strong Q1, Forecasts FY SSS of 6%
06/09Scotiabank Notes Dollarama's Q1 Beat, Says Delivers Solid Operating Performance
06/09Dollarama Price Target Raised at RBC, TD
06/08TSX falls as investors await evidence of peak inflation
06/08Dollarama announces election of directors
06/08Dollarama adjusts product lines as stores set to introduce $5 maximum price
06/08TRANSCRIPT : Dollarama Inc., Q1 2023 Earnings Call, Jun 08, 2022
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Analyst Recommendations on DOLLARAMA INC.
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Sales 2023 4 795 M 3 712 M 3 712 M
Net income 2023 771 M 597 M 597 M
Net Debt 2023 1 772 M 1 371 M 1 371 M
P/E ratio 2023 28,2x
Yield 2023 0,11%
Capitalization 21 871 M 16 932 M 16 932 M
EV / Sales 2023 4,93x
EV / Sales 2024 4,55x
Nbr of Employees 14 230
Free-Float 96,1%
Duration : Period :
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Technical analysis trends DOLLARAMA INC.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 14
Last Close Price 74,95 CAD
Average target price 79,07 CAD
Spread / Average Target 5,50%
EPS Revisions
Managers and Directors
Neil George Rossy President, Chief Executive Officer & Director
Jean Philippe Towner Chief Financial Officer
Stephen K. Gunn Chairman
Nicolas Hien Chief Information Officer
Johanne Choinière Chief Operating Officer
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