Lockdowns Affect Dollarama Sales

Dollarama Inc. had sales of $1,103.7 million in the fourth quarter of its fiscal 2021 year, an increase of 3.6 per cent compared to sales of $1,065.2 million in the fourth quarter of fiscal 2020. Sales growth was driven by growth in the total number of Dollarama stores over the past 12 months (from 1,291 stores in February 2020 to 1,356 stores in January 2021). Lockdowns and stringent measures set out by provincial authorities negatively impacted in-store traffic and sales. Excluding temporarily closed stores, comparable store sales for the fourth quarter declined by 0.2 per cent compared to the previous year period, reflecting a 27 per cent increase in average transaction size and a 21.4 per cent decrease in the number of transactions. Gross margin was 45.5 per cent of sales in the quarter compared to 44.7 per cent the previous year. Earnings before taxes decreased by 0.7 per cent to $326.9 million, or 29.6 per cent of sales, compared to 30.9 per cent of sales in the prior-year fourth quarter. Net earnings were $173.9 million compared to $178.7 million.