Dollarama has revised upwards its store-opening plans as well as its fiscal forecast for 2017, after reporting better-than-expected results for the last year.
For the three months to 29 January 2017, operating profit jumped up 19.1% to C$210.7m, sales were up 11.5% to C$854.5m, and like-for-like sales grew by 5.8%. The results helped push its full-year operating profit up by 17.5% to C$645.5m, sales by 11.8% to C$2.96bn, and like-for-like sales by 5.8%.
Dollarama said the results were partially boosted by better than expected consumer acceptance of higher price points (C$3.50 to C$4), although CEO Neil Rossy noted that shoppers are “still fully focused on the C$1 and C$1.25 price points as much as possible.”
Dollarama ended the year with just under 1,100 outlets and said it now aims to have up to 1,700 outlets operational across Canada, up from its previous target of 1,400 stores. It said it will add 60-70 of those outlets in this fiscal year itself, and aims to reach its target within 8-10 years.
The company also said it now expects operating profit to grow by 22%-23.5% for this year, up from its previous forecast of 21.5%-23% growth.