Dollarama sales up

Photo: The Canadian Press

Dollarama Inc. reported a profit of $143.2 million in its latest quarter as its sales grew 9.0 per cent compared with a year ago.

The discount retailer says its profit amounted to 45 cents per diluted share for the quarter ended Aug. 4 compared with a profit of $140.4 million or 42 cents per diluted share a year ago.

Sales totalled $946.4 million, up from $868.5 million, while comparable store sales grew 4.7 per cent.

Analysts, on average, had expected a profit of 46 cents per share and revenue of $939.2 million, according to financial markets data firm Refinitiv.

In its outlook, Dollarama raised its guidance for comparable store sales growth to a range of 3.5 to 4.5 per cent compared with earlier expectations for between 3.0 and 4.0 per cent.

However, the retailer said its gross margins are expected to come in at the low end of its earlier guidance at 43.25 to 43.75 per cent, compared with earlier expectations for between 43.25 and 44.25 per cent.