Dollarama reports $183.4M Q3 profit as sales rise

Photo: The Canadian Press

Dollarama Inc. reported a third-quarter profit of $183.4 million, up from $161.9 million in the same quarter last year as its sales rose 5.5 per cent.

The retailer says the profit amounted to 61 cents per diluted share for the 13-week period ended Oct. 31, up from 52 cents per diluted share a year earlier.

Sales in the quarter totalled $1.12 billion, up from $1.06 billion in the same quarter last year.

Comparable store sales growth was 0.8 per cent compared with a gain of 7.1 per cent a year ago.

Dollarama says the increase came as the average transaction size fell 2.8 per cent, but the number of transactions it saw rose 3.7 per cent as shopping patterns seen last year when people bought more but made fewer shopping trips reversed.

Over a two-year period, the retailer says comparable store sales growth for the third quarter averaged 3.9 per cent per year.

"Our teams have worked nimbly to ensure that we entered the fourth quarter with well-stocked stores offering compelling value on everyday and seasonal goods to Canadians from all walks of life ahead of the holidays," Dollarama chief executive Neil Rossy said in a statement.

"Our ability to adapt in the second year of the pandemic in what continues to be a complex environment further reinforces the resilience of our unique business model, the relevance of our brand and strong value proposition to Canadian consumers."