Business
Dollarama reports continued strong sales and earnings growth for its first quarter ended May 2, 2010
Dollarama reports continued strong sales and earnings growth for its first quarter ended May 2, 2010
About this update from Dollarama Inc.
[{"type":"text","content":"\n\n\n\n Jun. 10, 2010 (Canada NewsWire Group) -- MONTREAL, June 10 /CNW Telbec/ - Dollarama Inc. ("Dollarama" or the "Corporation") (TSX: DOL) reported significant increases in sales and net earnings today for the first quarter ended May 2, 2010.\n\nFinancial and Operating Highlights\n\n(All comparative figures below and in the "Financial Results" section that follows, are for the 13-week period ended May 2 , 2010 compared to the 13-week period ended May 3, 2009. Throughout this news release, the term "Normalized" has been used to refer to financial results that have been adjusted to exclude certain non-recurring items. For a full explanation of the Corporation's use of the Non-GAAP measures, please refer to Note 1 of the Selected Consolidated Financial Information section of this news release.)\n\n\n >\n\n\n"We are pleased to report our first quarter results and strong store performance" said Larry Rossy, chief executive officer of Dollarama. "We continue to offer high quality goods and to renew our assortment of products at all price levels in an effort to satisfy our customers' needs and deliver outstanding value. We are equally committed to managing our operating costs to maintain our margins and increase shareholder value."\n\nFinancial Results\n\nFor the quarter ended May 2, 2010, we recorded sales of $311.9 million, a 14.1% increase over the quarter ended May 3, 2009. Sales growth was driven mainly by the net addition of 34 stores since the end of the first quarter ended May 3, 2009 and by comparable store sales growth of 8.6%, resulting from a 1.9% increase in number of transactions and a 6.6% increase in average transaction size.\nOur gross margin increased to 34.3% of sales as compared to 33.4% of sales for the quarter ended May 3, 2009, driven mainly by reduced transportation costs, improved logistics cost efficiencies and reduced shrink provision.\nGeneral, administrative and store operating expenses ("SG&A") increased $5.0 million, or 8.9%, from $56.8 million for the quarter ended May 3, 2009, to $61.8 million for the quarter ended May 2, 2010 due mainly to the net addition of 34 new stores since May 3, 2009 and to increased store wage rates. As a percentage of sales, SG&A expenses declined to 19.8% of sales for the quarter ended May 2, 2010 as c...