Q: Hi 5i,
Can you comment Dollarama earning? Would you add to an existing poaition on this dip or wait?
Thank you
Can you comment Dollarama earning? Would you add to an existing poaition on this dip or wait?
Thank you
5i Research Answer:
EPS of 98c matched estimates; Sales of $1.56B also matched. EBITDA of $509M beat estimates by 0.4%. Sales rose 5.7%, with 3.2% growth in same store sales. Consumables were strong but seasonal products were weaker than expected. 18 new stores were opened in the quarter. DOL also announced it is developing a new $47M logistics hub in western Canada. Guidance was maintained. The stock is off a bit today, but likely it is profit-taking after its (still) 49% gain this year. We would remain comfortable buyers.