Dollarama’s sales continue to rise across all categories, while demand for “consumables” such as groceries and home cleaning products is higher than in the past.
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Sales rose 15% in the second quarter at stores open for 12 months, the Montreal retailer said Wednesday.
“We are extremely pleased with the results,” commented CEO Neil Rossy.
Sales increased by 20% and profits by 27%.
Net income reached $245.8 million, or 86 cents per share, for the quarter ended July 30, compared with $193.5 million, or 67 cents per share, in the same period last year.
Revenue, which reached $1.5 billion in Q2, continues to exceed the company’s expectations. On a diluted per share basis, earnings growth was 30.3%.
Earlier this year, Dollarama forecast sales growth of 5% to 6% for comparable stores — those open 12 months or longer. The company has revised its forecasts upward and is now targeting 10% or 11%.
As for new stores, the Montreal retailer opened 18 in Canada in three months. In Quebec alone there are now almost 400.
Le Belle Province has one Dollarama per 22,000 residents, the third largest concentration of stores after New Brunswick and Newfoundland.
Across Canada, Dollarama had 1,525 stores at the end of the quarter, compared to 1,444 at the same time last year.
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