Montreal-based Dollarama posted double-digit sales gains for its fiscal fourth quarter and year, driven by comparable-store sales growth of 8.7% in Q4 and 12.8% in fiscal 2024.
The company, which operates 1,551 stores across Canada, said that total sales for the year were up 16.1% over year-ago results, to nearly $5.9 billion Canadian, or about $4.3 billion U.S. The company said the sales growth reflected new store openings and comp-store gains driven by strong performances across all categories, including consumables.
“Consumables continue to benefit from stronger than historical demand,” said Patrick Bui, chief financial officer, in a conference call with analysts.
Dollarama offers a broad selection of household and seasonal products priced at up to $5 per unit, including an assortment of CPG food products.
Net income for Q4, which ended Jan. 28, was up 23.9% compared with the year-ago quarter, to C$323.8 million (about US$238.3 million). Dollarama said its gross margins in the quarter benefitted from lower inbound shipping costs and lower logistics costs.
For the full fiscal year, net income totaled about C$1 billion (about US$743 million), an increase of about 26% over year-ago results.
“Over the last few years, Dollarama has truly solidified its position as an indispensable shopping destination for consumers across Canada,” said Neil Rossy, president and CEO, during the earnings call. “This is thanks to our ability to deliver compelling value and convenience year round on a broad range of everyday and seasonal products within our low fixed price point.”
The economic outlook remains uncertain, he said, although the company said it expects its sales growth to abate somewhat after back-to-back years of double-digit comp-store sales gains. Comp-store sales for the current year, fiscal 2025, are projected to grow 3.5% to 4.5%.
The company plans to add between 60 and 70 new Dollarama stores in Canada this year, after opening 65 last year.
In addition to its Canadian operations, Dollarama also has a 50.1% stake in Latin American discount chain Dollarcity, which operates 532 stores in El Salvador, Guatemala, Colombia, and Peru. Dollarcity opened 92 net new stores in calendar 2023, and it has a target of operating 850 locations by 2029.
