|Company Name:||Dollarama Inc|
|Event Title:||Q2 2014 Earnings Call Transcript|
|Event Time:||10:30 AM ET|
Good morning and welcome to the Dollarama Conference Call for the Second Quarter Results of Fiscal Year 2014. Today's call will be led by Mr. Larry Rossy, Chief Executive Officer. Also with Mr. Rossy on the phone today, is Mr. Michael Ross, Chief Financial Officer and Secretary. Furthermore, during the question period, Mr. Neil Rossy, Chief Merchandizing Officer will be available for questions.
They will begin with a short presentation, followed by a question-and-answer period open exclusively to investors and financial analysts. For your convenience, the press release along with the quarterly financial statements and management's discussion and analysis are available on the Investor Relations section of the website at dollarama.com. They are also available on SEDAR.
Before we start, I have been asked by Dollarama to read the following message regarding forward-looking statements. I would like to remind everyone that Dollarama's remarks today may contain forward-looking statements about its current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements and or other future events or developments.
Several assumptions were made by Dollarama in preparing these forward-looking statements and many factors could cause actual results, levels of activity, performance, achievements, future events or developments to differ materially from those expressed, or implied by the forward-looking statements. As a result the company cannot guarantee that any forward-looking statements will materialize and you are cautions not to place undue reliance on these forward-looking statements.
For additional information on such assumptions, and risks, please consult the cautionary statements regarding forward-looking information contained in Dollarama's MD&A dated September 11, 2013 available at www.sedar.com. Forward-looking statements represent Dollarama's expectations as of September 11, 2013, and except as may be required by applicable securities laws, Dollarama has no intention and undertakes no obligation to update or revise any forward-looking statements whether as
a result of new information, future events or otherwise.
I would now like to turn the conference call over to Mr. Rossy.
Chair of the Board of Directors and Chief Executive Officer
Okay. Thank you operator and good morning everyone.
This morning we reported our financial and operating results for the second quarter of your fiscal year 2014. We're very pleased with these results. You can see that our customers continue to respond favorably to our merchandising strategy through increased same store sales and that our expansion program continues to appeal the growth of our business across Canada.
I'll let Michael provide you with the details relating to the operating initiatives and financial results for the quarter. From my perspective, this quarter was defined by the continued acceleration of new store openings across Canada as well as a continued uptake of the higher price point merchandise introduced last fall.
In terms of new stores we have opened 93 net new stores over the past 12 months compared to 55 net new stores in the same period last year, thereby increasing our total store count to 828 stores compared to 735 stores at the end of Q2 last year.
During the second quarter of this year we opened 22 net new stores compared to 14 in the same period last year. Given the pace of new store openings in the first half of the year we are now on pace to open at least 85 stores for fiscal 2014. All of our new stores are being opened in high quality retail locations across Canada with most of the new stores located in ontario on Western Canada which our markets, there continued to be underpenetrated with Dollar stores. We have continued to focus our efforts on identifying core urban centers in these markets.
During Q2 we also acquired the rights to seven leases that were previously held by -- shop retail chain which filed for protection from its creditors. These sites are likely to be opened as Dollarama stores within the next 6 to 12 months. We have also opened four of the five locations that were previously held by -- for dollar chain and we are pleased by the initial sales results to the stores. We expect to open the fifth shortly.