MONTREAL — Dollarama Inc. topped expectations as it reported a second-quarter profit of $142.5 million and a seven per cent increase in sales compared with a year ago.
The retailer says the profit amounted to 46 cents per diluted share for the quarter ended Aug. 2 compared with a profit of $143.2 million or 45 cents per diluted share in the same quarter a year earlier when it had more shares outstanding.
Sales in the quarter totalled $1.01 billion, up from $946 million a year ago, boosted by an increase in its number of stores and higher sales of summer seasonal items as well as household and cleaning products.
Analysts on average had expected a profit of 42 cents per share and $975.7 million in revenue, according to financial markets data firm Refinitiv.
Comparable store sales excluding temporarily closed stores grew 5.4 per cent, while comparable store sales including temporarily closed stores rose 2.5 per cent.
Dollarama says the average transaction size rose 41.7 per cent, but there was a 25.7 per cent drop in the number of transactions as customers reduced how often they shopped but bought more when they did.
This report by The Canadian Press was first published Sept. 2, 2020.