Dollarama’s sales fall shy of Wall Street estimates in the fourth quarter.

Dollarama Inc. (TSE: DOL) said on Wednesday that its sales came in lower than what analysts had anticipated in the fiscal fourth quarter. The company attributed its dovish performance to the Coronavirus pandemic that again restricted people to their homes in recent months.

Dollarama started the year 2021 at £30.11 per share and is currently around the same level as well, after touching a low of £27.18 per share in late February.

Dollarama’s Q4 financial results versus analysts’ estimates

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Dollarama reported £100.26 million of net earnings in the fourth quarter that translates to 32.29 pence per share. In the comparable quarter of last year, it had posted a higher £103.03 million of net earnings or 32.86 pence per share. The Canadian firm’s earnings were in line with market expectations in the quarter that concluded on 31st January.

The dollar store retail chain valued its net sales in Q4 at £630 million versus the year-ago figure of £620 million. In comparison, analysts had expected the company to record a higher £650 million of net sales in the recent quarter. In the prior quarter (Q3), Dollarama had recorded £620 million of net sales.

Dollarama also approved a 7% increase in its quarterly dividend on Wednesday. The company expressed confidence that share buybacks will also be resumed in 2022. The Montreal-based company wants to open up to 70 stores this year.

Dollarama had previously aimed for 1,700 stores in Canada by 2027. By the next decade, it now plans on operating a network of 2,000 stores instead. In separate news from Canada, Blackberry also published its quarterly financial results earlier this week.

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Chief Executive Neil Rossy’s comments on Wednesday

CEO Neil Rossy commented on the quarterly update on Wednesday and said:

“In Fiscal 2021, we achieved solid results in a truly unprecedented year, which reconfirmed the resilience of our business model and the relevance of our offering to Canadians from all walks of life. Our store teams and business leaders came together quickly to implement new operating procedures to protect customers and staff in order to provide Canadians with convenient and affordable access to everyday essentials throughout the pandemic.”

Dollarama performed slightly upbeat in the stock market last year with an annual gain of close to 15%. At the time of writing, it has a market capitalisation of £9.35 billion and a price to earnings ratio of 28.74.

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