Dollarama (DOL.TO) shares posted their worst single-day performance in more than seven years on Tuesday as the discount retailer forecast slower sales growth in the coming year.

So far, analysts on Bay Street aren’t flinching.

For years, the Montreal-based company’s management has pitched its global network of dollar stores as a go-to destination for value-conscious consumers in tough economic times. On Tuesday, chief executive officer Neil Rossy told investors that the latest war in the Middle East, along with Canada-U.S. trade tensions, rising unemployment, and inflation fears, is putting that narrative to the test.

Dollarama operates about 1,700 locations in Canada, its largest market. The company also owns a majority stake in Latin America-focused Dollarcity, and fully acquired Australia’s The Reject Shop chain last year.

“I don’t believe that any retailer will escape the reality of global economics,” Rossy said during a conference call to discuss Dollarama’s financial results for the fourth quarter of its fiscal year ended Feb. 1.

“Inbound costs, outbound costs, production costs, raw material costs, all are being affected by the increased cost of oil, and that will make its way down the supply chain.”

Rossy says Dollarama will pass on these increases only “where absolutely necessary,” estimating on Tuesday that supply chains for all retailers and consumers will feel the sting of higher energy for up to a year.

The company is now calling for Canadian same-store sales growth of between three and four per cent in its next fiscal year. That figure, a closely-watched gauge in the retail industry, clocked in at 4.2 per cent for the fiscal year ended Feb. 1, the lower end of guidance issued last December. In the previous fiscal year, same-store sales grew by 4.6 per cent.

Toronto-listed shares closed 1.99 per cent higher on Wednesday at $172.01, as the stock partially recovered from a 9.6 per cent decline in the previous session. This was the stock’s worst daily performance since a more than 17 per cent drop on Sept. 13, 2018.

What happened then? Dollarama lowered its same-store sales growth outlook to about 2.5 per cent to 3.5 per cent, down from a previous range of four per cent to five per cent.

As of Wednesday’s closing bell, Dollarama’s stock is up about 300 per cent since Sept. 14, 2018. Reference