Dollarama (DOL) ran 9% on the back of its Q1 results, which blew past estimates on the back of better same-store growth in Canada - driven by a rebound in transaction activity as consumers trade down…

… and continued help from basket growth, as prior price increases flow through. While small on a relative basis, the company’s Latin American business continues to ramp up…

… more-than-offsetting the margin drag from Australia, which is still in the early stages of its transformation. With DOL’s valuation recovering after a guidance-driven selloff earlier in the year…

… investors clearly have confidence in management’s ability to execute.

You might be interested in…

About Bullpen: Bullpen Finance Inc. publishes content on Canadian markets and provides paid research coverage of select Canadian issuers. Bullpen is paid in cash by covered issuers, does not accept stock or options, does not hold positions in covered securities, and does not conduct investment banking business. Bullpen and LodeRock Advisors Inc. are affiliated; LodeRock provides investor relations services to issuers, some of whom are covered by Bullpen Research. When a post discusses a covered issuer, a specific disclosure appears at the top of the post. This post is published for general information purposes. It is not personalized investment advice and is not tailored to any individual reader’s circumstances. Bullpen is not a registered investment adviser or dealer. For full disclosures, including analyst certification, jurisdictional statements, and conflict of interest policies, please see our Legal & Disclosures section on our website.