Dollarama keeps bringing in the dollars, as the Montreal-based retailer remains determined to open 60 to 70 stores within the next year and hopes to open 500 more stores in Canada over the next eight years.
Dollarama recorded a 15.5% increase in comparable-store sales for its fiscal 2024 second quarter compared to the same period last year, according to its latest earnings report. It has revised its comparable store-sales growth figures announced earlier this year from 5% to 6% to 10% to 11%.
Dollarama, which sells low-priced items ranging from candy to tools to personal items in more than 1,500 outlets across Canada, also announced a 23.8% growth in its earnings before interest, taxes, depreciation and amortization, an improvement of 1% over the same period last year, according to the company's earnings report.
Sales increased during the most recent quarter by 19.6%, which the company attributed to increasing its store count from 1,444 locations as of July 31, 2022, to 1,525 stores as of July 30, 2023, as well as an increase in comparable store sales.
Dollarama also announced the purchase of three properties near its operations in the Town of Mont Royal for $88.1 million in cash. The three properties are contiguous and near Dollarama's operations and distribution centre. The company employs about 400 people at its Town of Mount Royal headquarters and has about 23,000 employees in total, according to its website.
Dollarama has been led since 2016 by CEO Neil Rossy, the great-grandson of Salim Rossy, who started the company after coming to Montreal from Lebanon and launching a department store in 1910.
Dollarama also maintains a 50.1% ownership stake in the Dollarcity chain, which operates 458 retail outlets in Latin America, including 272 in Colombia, 93 in Guatemala, 66 in El Salvador and 27 in Peru, which is an increase of 18 from the start of the year, according to the report.