Dollarama Q1 comparable store sales grew 0.7%Christian Fernsby ▼ | June 11, 2020
Dollarama reported its financial results for the first quarter ended May 3, 2020.
Dollarama Sales for the first quarter of Fiscal 2021 increased
Sales for the first quarter of Fiscal 2021 increased by 2.0% to $844.8 million, compared to $828.0 million in the corresponding period of the prior fiscal year.
The increase in sales is attributable to the growth in the total number of stores over the past twelve months, from 1,236 stores on May 5, 2019 to 1,301 stores on May 3, 2020, and to a modest comparable store sales growth in open stores, driven by higher sales of consumables, including household and cleaning products, health and hygiene essentials and food products.
Comparable store sales, excluding temporarily closed stores, grew 0.7% in the first quarter of Fiscal 2021.
This growth consisted of a 22.6% increase in average transaction size and a 17.9% decrease in the number of transactions as customers reduced the frequency of store visits but purchased larger quantities of goods at one time.
The low traffic in mall stores that remained open across the country negatively impacted comparable store sales growth for the quarter.
Comparable store sales, including closed stores, decreased by 2.4% compared to the corresponding quarter of the previous fiscal year.
This is compared to strong comparable store sales growth of 5.8% recorded in the same quarter a year ago.
Gross margin was 41.3% of sales in the first quarter of Fiscal 2021, compared to 42.1% of sales in the first quarter of Fiscal 2020.
Financing costs increased by $1.6 million, from $25.6 million for the first quarter of Fiscal 2020 to $27.2 million for the first quarter of Fiscal 2021. ■