Canadian discount retailer Dollarama (TSE: DOL) has reported strong quarterly financial results as a growing number of consumers shop at its stores.
The Montreal-based company, which is Canada’s largest chain of dollar stores, reported earnings per share of $1.05, which beat analysts’ consensus forecast of $0.99.
Revenue in the first quarter of $1.85 billion surpassed the $1.82 billion expected among analysts. Sales were up 21% from a year earlier.
Management attributed the strong results to a growing number of Canadians seeking out deals at its stores amid rising economic uncertainty.
“In Canada, our value proposition continued to resonate with consumers as affordability and everyday value remained top of mind in an uncertain economic environment,” said Dollarama CEO Neil Rossy on the company’s earnings call with analysts and media.
Dollarama said that it opened 81 new stores across Canada over the past year, including 28 new locations during this year’s first quarter.
Same-store sales across the company’s network rose 5.6% year-over-year in the latest quarter. The metric tracks Dollarama locations open for 12 months or longer.
Management declared a quarterly dividend of $0.12 per share, unchanged from the previous quarter. The company repurchased 1.9 million shares worth $339 million during the first quarter.
DOL stock has declined 5% this year to trade at $195.76 per share.
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