Dollarama Inc. says it earned $179.9 million in its latest quarter, up from $145 .5 million in the same quarter a year earlier, as its sales gained 20.7 per cent.
The retailer says its profit amounted to 63 cents per diluted share for the quarter ended April 30, up from 49 cents per diluted share a year earlier.
Sales in what was the company’s first quarter totalled $1.29 billion, up from $1.07 billion in the same quarter last year.
The increase came as comparable store sales grew 17.1 per cent on a 15.5 per cent increase in the number of transactions and a 1.4 per cent increase in average transaction size.
WATCH | High inflation has Canadians flocking to discount stores:
Sales at discount chain Dollarama have jumped by close to 17 per cent as financially strapped Canadians search for bargains amid high inflation. But the bargain store chain hasn’t been immune to inflation either and is facing some stiff competition from rivals.
“Canadians from all walks of life continue to respond positively to our compelling value proposition and affordable product mix,” CEO Neil Rossy said in a release. “In the context of persistent inflationary pressure, we delivered a 17 per cent increase in comparable store sales in the first quarter.”
Dollarama says the increase in comparable store sales was attributable to strong demand across its offerings, including consumables, seasonal items and general merchandise.
The company also opened 21 new stores in the quarter, and now has 1,507 in total.
Analysts on average had expected a profit of 59 cents per share and $1.25 billion in sales, according to estimates compiled by financial markets data firm Refinitiv.
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