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  "documentTitle": "Dollarama Inc. (DOL)",
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  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-10-31 00:00:00",
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      "kind": "callout",
      "text": "Dollarama consistently produces operating margins materially higher than industry peers, and higher than historical industry norms. This gap has only grown more substantial through the last five years.",
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      "text": "Dollarama stands out among global consumer companies and retailers – 45th out of 584 global retailers by operating margin (and 12th out of 584 global retailers by revenue multiple)",
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      "text": "Peer Median Operating Margins vs. Dollarama (2008-2018)",
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      "text": "Dollarama Operating Margins vs. Peers (1990-2018)",
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      "text": "operating margin: 23.14%",
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      "text": "We acknowledge that Dollarama is a strong operator with a strong value proposition (though perhaps a declining one). However, we question whether a discount retailer reselling Chinese knock-offs should garner among the highest operating margins of all global retailers, and whether a discount retailer with declining per-store traffic can continue to rely on price hikes for SSS growth.",
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      "text": "Source: Bloomberg, EQS function",
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      "text": "Source: Dollarama and company filings",
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      "text": "Bloomberg EQS screen showing Dollarama ranked 45th in operating margin among 19 selected peers.",
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      "text": "Margins Are Inexplicably High And Perhaps Unsustainable",
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