Dollarama hikes dividend despite bad weather putting damper on sales

Dollarama said Canadian comparable store sales were up 1.5 per cent in the fourth quarter. Photo by Peter J. Thompson/National PostArticle contentCanadian discount giant Dollarama Inc. raised its dividend Tuesday despite bad weather hitting store traffic during the fourth quarter.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe retailer announced it was raising its quarterly dividend to 12 cents per share, up from 10.58 cents per share while releasing results for the quarter ending Feb. 1.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentShares dropped more than 7 per cent after the release.Article contentArticle contentThe company reported a $2.1 billion or a 11.7 per cent increase in sales for the quarter, up from $1.88 billion in the prior year.Article contentPosthasteBreaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentCanadian comparable store sales were up 1.5 per cent, which the company said was driven by demand for seasonal products, but offset by the impact of the calendar shift and “unfavourable weather conditions negatively impacting store traffic during historically strong sales weeks.”Article contentThis consisted of a 1.6 per cent drop in the number of transactions and a 3.1 per cent increase in average transaction size.Article contentDollarama’s EBITDA for the quarter was $711.5 million, up from $670.1 million in the previous year. This represented an EBITDA margin of 33.9 per cent, down from 35.6 per cent.Article contentThe company said the EBITDA margin was negatively impacted by its Australian segment by 240 basis points, representing $37.1 million.Article contentMore to come …Article contentTrending Posthaste: Canada's troubled housing market just got hit with another headwind News JPMorgan sees 'national security risk' in old grid networks PMN Business Oil and gas supply chain is about to snap, warns energy economist Peter Tertzakian Oil & Gas National Bank CEO pushes for Keystone XL revival and Eastern energy corridor Oil & Gas Subscriber only. Traders placed US$580 million in oil bets ahead of Donald Trump's social media post on Iran talks Subscriber only Financial Times Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: Canada's troubled housing market just got hit with another headwind News JPMorgan sees 'national security risk' in old grid networks PMN Business Oil and gas supply chain is about to snap, warns energy economist Peter Tertzakian Oil & Gas National Bank CEO pushes for Keystone XL revival and Eastern energy corridor Oil & Gas Subscriber only. Traders placed US$580 million in oil bets ahead of Donald Trump's social media post on Iran talks Subscriber only Financial Times