Dollarama Inc. declined to provide its annual financial guidance for its 2021 financial year due to COVID-19 pandemic, but said it expects to see some negative impacts.
The discount retailer typically includes a fiscal year outlook along with its fourth-quarter and full-year results, which the company released Wednesday.
“Due to the exceptional circumstances stemming from the global COVID-19 pandemic and our limited visibility on future performance, we have suspended this practice for now,” said chief financial officer Michael Ross in a conference call with analysts.
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The retailer will revisit that decision ahead of its first-quarter earnings release, he said, “should the situation normalize by then.”
The company is currently in the midst of its first quarter, which ends May 3. It started with strong same-store sales and store traffic momentum, carried over from the fourth quarter, he said.
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When the coronavirus outbreak ramped up in late February to mid-March, Dollarama saw a surge in transactions and the amount customers purchased as they stocked up on household cleaning supplies, food and craft supplies, among other things, said Ross.
“After this bump in sales, which lasted a few weeks, transactions began to level off,” he said, as increasingly strict social distancing measures from various governments resulted in mass shutdowns of retailers.
1:28Dollarama goes online
Dollarama goes online
Dollarama was deemed an essential service in areas where non-essential businesses were ordered to shut operations,