Retailer Dollarama reports Q1 profit down from year ago, but sales rise

Retailer Dollarama reports Q1 profit down from year ago, but sales rise
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MONTREAL — Dollarama Inc. reported its first-quarter profit fell compared with a year ago as it closed more than 100 stores and increased spending to help keep its employees and customers safe from the pandemic.

The retailer says it earned nearly $86.1 million or 28 cents per share for the quarter ended May 3 compared with a profit of $103.5 million or 33 cents per share in the same quarter a year earlier.

Sales totalled $844.8 million, up from $828.0 million a year ago.

The company said the rise in sales was attributable an increase in its total number of stores compared with a year ago and modest comparable store sales growth in the stores that were open, driven by things like cleaning products, health and hygiene essentials and food.

Excluding temporarily closed stores, Dollarama says comparable store sales grew 0.7 per cent. Including the temporarily closed stores, comparable store sales fell 2.4 per cent.

Dollarama said 1,197 stores were open at the end of the quarter and 104 were closed temporarily. However, the company said just 32 stores were closed temporarily as of Monday.

This report by The Canadian Press was first published June 10, 2020.

Companies in this story: (TSX:DOL)

 

 

 

The Canadian Press

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