MONTREAL — There's going to be a change at the top of the Dollarama discount retail chain as its founding chief executive steps back and his son takes on the top job.
Larry Rossy will continue as executive chairman, but his son Neil Rossy becomes Dollarama's president and CEO on May 1.
Neil Rossy, 46, is currently Dollarama's chief merchandising officer. He's been with the company since its inception in 1992 and has been a member of its board of directors since 2004.
"Succession planning has been an important focus for the board over the past several years and we believe this is the right time for an orderly leadership transition,'' said Stephen Gunn, lead director of Dollarama's board of directors.
"Neil has shown strong leadership as one of the key architects of Dollarama's success. He is an experienced retail executive with an intimate knowledge of all company operations, and is respected by his colleagues.''
Dollarama CEO Larry Rossy is handing the reins of the company to his son, Neil. (Canadian Press photo)
The announcement came as Dollarama better than expected revenue and profit for its fourth quarter and raised its quarterly dividend by a penny to 10 cents per share.
For the quarter ended Jan. 31, sales were 766.5 million, up 14.6 per cent from $669.1 million a year earlier. Comparable-store sales were up 7.9 per cent from the same period in fiscal 2015.
Dollarama's net income in the fourth quarter was $124.8 million or $1 per diluted share, up from $100.27 million or 76 cents per share a year earlier. The per-share profit was assisted by a decline in the number of shares outstanding.
Analysts had expected a profit of 93 cents per share and $751 million of revenue for the quarter, which spanned the busy year-end holiday period.
The company also raised is estimates for the current financial year, with its gross margin range rising by one percentage point to between 37 and 38 per cent and its earnings margin rising by one a percentage point to between 20.5 and 22 per cent. Capital spending was also increased by $60 million to between $160 million and $170 million.
For its full financial year, Dollarama reported sales of $2.65 billion, up 13.7 per cent from $2.33 billion in the financial year ended Feb. 1, 2015.
Its profit increased to $385.1 million or $3 per diluted common share for the financial year ended Jan. 31, up from $295.4 million or $2.21 per share a year earlier.