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Dollarama 3Q Profit Beats Views on Sustained Consumer Demand

Is Dollarama (TSX:DOL) Stock a Buy After Earnings?

On Wednesday, Dollarama(TSX:DOL) unveiled its latest financial results and new growth targets. The low-cost retailer saw its sales in the fourth quarter fall short of analysts’ expectations as the company grapples with tougher public health measures due to the pandemic. Slight decline in profits, increase in sales For the fourth quarter ended January 31 – which included the critical holiday season – net income was $173.9 million, or $0.56 per share, down from $178.7 million, or $0.57 per share, a year ago. Sales totalled $1.10 billion, up 2.8%, thanks to the addition of new stores. Comparable sales, however, contracted by 0.2%. Overall, consumers spent more on each visit, which offset the drop in traffic.

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