Dollarama provides update on December sales due to impact of weather conditions
MONTREAL, Jan. 17, 2014 /CNW Telbec/ - Dollarama Inc. (TSX: DOL) ("Dollarama" or the "Corporation") announced today that its December sales results were negatively impacted by exceptionally severe weather conditions.
Adverse weather conditions as well as power outages in some of the Corporation's core markets throughout the month of December 2013 resulted in a significant reduction in store traffic and the temporary closure of approximately 80 stores, for periods ranging from a few hours to two consecutive days. The majority of the impacted days occurred during the two weekends leading up to December 25th. Historically, the Corporation's highest sales results have occurred during the fourth quarter, more specifically during the winter holiday season, with December representing a higher proportion of sales.
Taking into account the 8.4% increase in comparable store sales for the month of November and the 7.5% decrease for December, comparable stores sales for the months of November and December combined decreased by 1.4% compared to the previous year. The Corporation believes the decline in December sales to be an exceptional event as sales are now trending back to normal levels in January.
The Corporation will provide additional details in the spring when it releases its financial statements for the fiscal year ending February 2, 2014. The Corporation does not intend to provide updates or guidance for future interim periods in respect of comparable store sales figures.
Dollarama is Canada's leading dollar store operator with 847 locations across the country. Our stores provide customers with compelling value in convenient locations, including metropolitan areas, mid-sized cities and small towns. Dollarama aims to provide customers with a consistent shopping experience, offering a broad assortment of everyday consumer products, general merchandise and seasonal items. Products are currently sold in individual or multiple units at select fixed price points up to $3.00.
Certain statements in this news release about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. Forward-looking statements are based on information currently available to us and on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors which are discussed in greater detail in the "Risks and Uncertainties" section of the Corporation's management's discussion and analysis (MD&A) for the fiscal year ended February 3, 2013 and in its continuous disclosure filings (available on SEDAR at www.sedar.com).
These factors are not intended to represent a complete list of the factors that could affect us; however, they should be considered carefully. The purpose of the forward-looking statements is to provide the reader with a description of management's expectations regarding the Corporation's financial performance and may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements made herein. Furthermore, unless otherwise stated, the forward-looking statements contained in this news release are made as of January 17, 2014, and we have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
SOURCE Dollarama Inc.For further information:
Michael Ross, FCPA, FCA
Chief Financial Officer and Secretary
(514) 737-1006 x1237
NATIONAL Public Relations