#GlobalNews: “Dollarama costs might rise, due to Canada-U.S. tariff dispute – National ” #Toronto #Montreal #Calgary #Ottawa #Canada


MONTREAL — Dollarama Inc. could also be compelled to lift costs on meals and different items imported from the U.S. due to Canada’s plans to impose tariffs in retaliation for American duties on aluminum and metal, the corporate’s CEO mentioned Thursday.

READ MORE: Canada hits again in opposition to U.S. with extra tariffs — however what are they and the way do they work?

Neil Rossy mentioned he’s not apprehensive in regards to the low cost retailer shedding its aggressive edge as a result of different Canadian retailers will face the identical pressures.

“It won’t be fun for any retailer in the country and I guess the saving grace is that it will affect all retailers in Canada the same way,” he informed shareholders on the firm’s annual assembly.

“That being said the customer may suffer if the changes are extreme but they will suffer across all retailers because retailers can only do so much.”

Rossy later informed reporters that it’s a fancy job to evaluate the potential impression on tons of of things, particularly if client items can’t be sourced from different nations.

“So if I’m buying plastic-moulded items I have options all around the world for them. If I’m buying a Mars bar or a Hershey bar made in Pennsylvania I don’t really have too many options.”

WATCH: Putin calls U.S. tariffs on Canada ‘sanctions’

Dollarama can’t rule out elevating costs however wouldn’t achieve this on gadgets that aren’t straight hit by greater prices with a purpose to stay aggressive, Rossy mentioned. It additionally has no plans to extend its most value of meals gadgets past $2 or add the next class of costs past $4.

The retailer mentioned it has additionally tried to soak up the associated fee from an increase in minimal wages and would welcome the Ontario Progressive Conservative occasion’s promise to not improve the extent to $15 in January ought to or not it’s elected Thursday.

“I think it’s good for everyone. You never like to have inflation,” mentioned chief monetary officer Michael Ross.

Dollarama introduced Thursday that it plans to check its e-commerce technique to promote full containers of choose gadgets to customers in Quebec by Christmas earlier than rolling out this system throughout the nation.

READ MORE: Canada retaliates in opposition to U.S. metal, aluminum tariffs, broadcasts dollar-for-dollar ‘countermeasures’

The firm mentioned there’s a wholesome urge for food for its retail mannequin in Latin America. But it wouldn’t point out if it plans to train an possibility in 2020 to purchase a majority stake in Dollar City, which operates greater than 100 smaller shops in a number of Central American nations.

Dollarama shares fell 6.Four per cent in Thursday buying and selling after the low cost retailer missed analyst expectations as cool spring climate damage gross sales of seasonal items which can be a key driver of revenues in April.

Its shares misplaced $10.07 at $146.41 in afternoon buying and selling on the Toronto Stock Exchange.

WATCH: Trudeau calls Trump tariffs ‘insulting and unacceptable’

Dollarama earned $101.6 million or 92 cents per diluted share within the first quarter. That in contrast with $94.7 million or 82 cents per share in final yr’s fiscal first quarter.

Sales for the 13 weeks ended April 29 have been $756.1 million, up 7.three per cent from $704.9 million within the comparable interval a yr earlier.

The firm’s adjusted earnings additionally got here in at 92 cents per share, simply wanting the 93 cents per share it was anticipated to earn on $776.6 million of revenues, in keeping with analysts polled by Thomson Reuters Eikon.

READ MORE: From pork to denims — nations threaten tariff retaliation for U.S. metal, aluminum duties

Comparable retailer gross sales grew 2.6 per cent from final yr, whereas the variety of shops grew by 62 places to 1,170. Excluding the impression on seasonal items resembling gardening gadgets, same-store gross sales have been inside its forecast of 4 to 5 per cent.

Many retailers can be proud of these numbers however buyers have develop into accustomed to greater comparable gross sales from Dollarama which have ranged from 5.2 to 7.three per cent over the previous three years.

WATCH: Trudeau on tariffs, ‘In what universe is Canada…somehow become a national security threat’ to U.S.

Analyst Irene Nattel of RBC Capital Markets mentioned the outcomes are greatest considered as a blip on Dollarama’s constant trajectory of 15 to 20 per cent earnings per share will increase.

“We remain confident in Dollarama’s ability to continue to deliver EPS compounded growth approaching 20 per cent over our forecast horizon,” she wrote in a report.

Shareholders on Thursday accredited a three-for-one inventory cut up efficient June 19, designed to make the corporate’s shares extra accessible to retail buyers.

The annual assembly noticed Dollarama founder Larry Rossy step down as government chairman, though he’s anticipated to stay a mentor and proceed displaying up on the firm’s headquarters, mentioned his son Neil who’s chief government.

Note: “Previously Published on: 2018-06-08 12:08:12, as ‘Dollarama costs might rise, due to Canada-U.S. tariff dispute – National

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