Q4 2024 Dollarama Inc Earnings Call Transcript
Key Points
- Comparable store sales growth exceeded expectations at 8.7% for the quarter and 12.8% for the full fiscal year.
- Earnings per share (EPS) increased by over 26% for the quarter and 29% for the fiscal year.
- Opened 65 net new stores in fiscal 2024, bringing the total store count to 1,551.
- Dollarcity, a subsidiary, opened 92 net new stores in calendar 2023, ending the year with over 530 stores.
- Gross margin for the full year was strong at 44.5%, reaching the top end of the guidance range.
- Average transaction size decreased by 2.2% in Q4, reflecting a potential shift in consumer spending behavior.
- SG&A represented 14.5% of sales for Q4, slightly higher than the same period last year due to increased labor costs.
- The company faces continued economic uncertainty and difficulty in predicting future consumer behavior.
- Shrink (loss of inventory due to theft, damage, or error) is increasing, although it appears to be plateauing.
- The company is experiencing higher than historical wage inflation, which is pressuring SG&A as a percentage of sales.
Good morning, and welcome to the Dollarama Fourth Quarter and Fiscal Year 2024 Results Conference Call. Neil Rossy, President and CEO; and Patrick Bui, CFO, will make a short presentation, followed by a question-and-answer period upon exclusively to financial analysts. The press release, financial statements and management discussion and analysis are available at dollarama.com in the Investor Relations section as well on SEDAR.
Before we start, I have been asked by Dollarama to read the following message regarding forward-looking statements. Dollarama's remarks today may contain forward-looking statements about its current and future plans, expectations, intentions, results, levels of activity, performance, goals or achievements or any other future events or developments. Forward-looking statements are based on information currently available to management and on estimates and assumptions made based on factors that management believes are appropriate and reasonable in the circumstances.
However, there can be no assurance that such estimates and assumptions will prove to be correct. Many
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