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Highlights
- Dollarama's net income increased to C$ 183.4 million, which means that the profit was 61 cents per share.
- Dollarama is one of the leading retail chains in Canada and it attracts customers for its discount offers throughout the year.
- The Board of Directors has approved to give a quarterly dividend of C$ 0.05 per unit to the shareholders.
Dollarama Inc. (TSX:DOL) says its sales increased by 5.5 per cent in the third quarter of the fiscal year 2022 in comparison to Q3 2021. Meanwhile, the comparable store sales surged by 0.8 per cent in Q3 2022, which was above 7.1 per cent growth in the same quarter of the previous year.
The Montreal-based company surpassed the analysts’ expectations for quarterly profit and that became possible due to high demand for its products on occasions like Halloween.
Dollarama's net income increased to C$ 183.4 million, which means that the profit was 61 cents per share for the period ended October 31. According to reports, the analysts were expecting the retail chain to earn a profit of 57 cents per share.
Total sales expanded to C$ 1.12 billion in Q3 2022 from C$ 1.06 billion in Q3 2021.
Dollarama's (TSX:DOL) financial performance: Key details
The retail chain has said that its operating income has recorded a surge of 11.4 per cent year-over-year (YoY) and it amounted to C$ 271.66 million in the third quarter of fiscal 2022.
Meanwhile, the earnings before interest, taxes, depreciation and amortization (EBITDA) was C$ 347 million, up 11.2 per cent YoY.
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Neil Rossy, Chief Executive Officer (CEO) and President at Dollarama said that the company performed well due to seasonal sales and the comparable store sales growth is commendable.
Also Read: This Canadian retail giant hiked its dividend by more than 10%! A buy?
The Board of Directors have approved giving a quarterly dividend of C$ 0.05 per unit to the shareholders and it will be payable on February 4 of next year.
Bottom line
Dollarama is one of the leading retail chains in Canada and it attracts customers for its discount offers throughout the year. It offers a wide variety of seasonal items, consumer products and general merchandise at low fixed prices.
Also Read: 5 Canadian retail stocks to buy as we head into holiday season
As Christmas and New Year is nearing, customers are expected to visit retail stores for party supplies, social events, decor, and get-togethers. Dollarama could benefit through seasonal sales.
