Sector Update: Consumer; Dollarama, BRP Report Earnings, George Weston Prices Notes Sale
Consumer Stocks (Discretionary and Staples):
Dollarama (DOL.TO): -2.2%
BRP Inc. (DOO.TO): +0.9%
George Weston (WN.TO): -0.6%
Cogeco Cable (CCA.TO): +2.3%
Canadian Tire (CTC-A.TO): -0.9%
In corporate news, Dollarama Thursday reported net earnings of $53.2 million, or $0.78 per diluted share, for Q1 ended May 4, 2014, up from last year's net earnings of $45.6 million, or $0.62 per diluted share. Eight analysts surveyed by Capital IQ were expecting diluted EPS of $0.77.
Sales for the period increased 11.8% year-over-year to $501.1 million, driven by growth in number of stores over the past 12 months, by strong Easter sales, and by continued organic sales growth. Comparable store sales grew 3.3%.
The board of directors approved a quarterly dividend of $0.16 per common share, payable on August 6 to shareholders of record at the close of business on July 4. The board also authorized the repurchase of up to 2.3 million shares for cancellation, beginning June 17, 2014 until June 16, 2015.
Meanwhile, BRP Inc. on Thursday reported Q1 results in-line with the outlook provided on March 28.
It reported revenues of $758.6 million, a decrease of 6% compared to the three-month period ended April 30, 2013 and net income of $28.0 million, which resulted in diluted earnings per share of $0.24. Normalized net income was $16.6 million, which resulted in normalized diluted earnings per share of $0.14.
BRP cited strong spring bookings in snowmobiles and Sea-Doo Spark retail beyond expectations. Its fiscal year 2015 financial guidance was reaffirmed.
Finally, George Weston reported late Wednesday the pricing of the sale of $200 million in senior unsecured notes due 2024. The food and drug retailer said the notes will bear a 4.115% interest rate. The net proceeds will be used for general corporate purposes.
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