Dollarama shares hit record high after results, dividend hike
By Solarina Ho
TORONTO (Reuters) - Shares of Dollarama Inc (DOL.TO: Quote) hit a record high on Friday after the Canadian dollar-store operator reported a stronger-than-expected jump in profit and sales and raised its dividend by 27 percent.
Dollarama shares jumped 5.2 percent to C$67.97 on the Toronto Stock Exchange. Earlier, the stock touched a record C$68.64.
The retailer's board approved an increase in the quarterly dividend to C$0.14 per share from C$0.11.
Helped by the sale of more items priced above C$1.00, net income increased to C$77.1 million ($76.3 million), or C$1.04 a share, in the fiscal fourth quarter, ended February 3, from C$63.6 million, or 84 Canadian cents, a year earlier.
Sales climbed 20 percent to C$561.9 million, with products priced at more than C$1.00 making up 56 percent of sales. The quarter included 14 weeks, compared with 13 a year earlier. The 14th week accounted for C$32.1 million in sales.
Analysts had expected earnings of C$1.02 a share on sales of C$546.3 million, according to Thomson Reuters I/B/E/S.
Dollarama operates 785 stores across Canada, including 24 opened during the fourth quarter. It said same-store sales rose 4.6 percent in the quarter despite poor weather in December and January. Customers spent more during each visit, while the number or transactions held steady.
For the full year, sales at stores open for at least a year rose 6.5 percent with a 2.1 percent increase in the number of customer transactions. Continued...