In This Article:
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Q4 Revenue: Increased by 14.8% year-over-year to nearly $1.9 billion.
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Fiscal 2025 Revenue: Increased by 9.3% to more than $6.4 billion.
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Q4 Same-Store Sales Growth (SSS): 4.9%.
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Full Year Same-Store Sales Growth (SSS): 4.6%.
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Q4 Gross Margin: 46.8% of sales.
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Full Year Gross Margin: 45.1% of sales.
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Q4 SG&A: 14.7% of sales.
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Full Year SG&A: 14.5% of sales.
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Q4 EBITDA: $670 million.
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Full Year EBITDA: $2.1 billion.
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Q4 Diluted EPS: Increased by 21.7% to $1.40.
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Full Year Diluted EPS: Grew 16.9% to $4.16.
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Dollarcity Q4 Net Earnings Contribution: $58 million.
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Dollarcity Full Year Net Earnings Contribution: $129.9 million.
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Net New Stores in Q4: 15, bringing the total to 65 for the year.
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Total Store Count at Fiscal Year-End: 1,616 stores.
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CapEx for Fiscal 2025: $195.3 million, excluding land acquisition costs.
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Share Buyback: Over 8.1 million shares repurchased for nearly $1.1 billion.
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Quarterly Cash Dividend Increase: 15% to $0.1058 per share.
Release Date: April 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Dollarama Inc (DLMAF) reported a strong same-store sales growth of 4.9% in Q4, contributing to a full-year growth of 4.6%.
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The company opened 15 net new stores in Q4, totaling 65 new stores for the year, and plans to open 70 to 80 net new stores in fiscal 2026.
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Dollarcity, a subsidiary, opened 100 net new stores in 2024, and is self-funding its growth while generating excess cash for shareholders.
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Dollarama Inc (DLMAF) completed the acquisition of land for a new logistics center in Calgary, enhancing its logistics operations.
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The company announced a 15% increase in its quarterly cash dividend, reflecting strong financial performance and shareholder returns.
Negative Points
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Dollarama Inc (DLMAF) faces headwinds from retaliatory tariffs on consumable goods imported from the US, impacting gross margins.
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The company anticipates a loss of USD10 million to USD20 million in Mexico for fiscal 2026 due to market entry and ramp-up costs.
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Higher labor and store operating costs, including increased recycling costs, are expected to pressure SG&A expenses.
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The economic outlook remains uncertain, with low consumer confidence potentially impacting discretionary spending.
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Dollarama Inc (DLMAF) expects gross margin pressures in fiscal 2026 due to a weaker Canadian dollar and higher shipping rates.
Q & A Highlights
Q: Can you provide details on the impact of tariffs and how they affect your product categories? A: Neil Rossy, President and CEO, explained that the majority of the goods affected by tariffs are in the consumable area. Dollarama plans to navigate this through product substitutions or pricing adjustments. Consumer confidence is a concern, as tariff discussions can impact spending habits.