Canadian discount retailer Dollarama (DOL) has reported better-than-expected second quarter
earnings and raised its forward guidance.
Montreal-based Dollarama reported that its Q2 sales rose 18.2% to $1.22 billion, beating Bay
Street expectations for $1.19 billion in sales, according to Refinitiv data.
The company’s net income for the quarter grew to $193.5 million, or $0.66 per share, from
$146.2 million, or $0.48 a share, a year earlier.
Looking forward, Dollarama said it now expects comparable store sales growth of 6.5% to 7.5%
for the year, up from 4% to 5% forecast previously.
The company said it is benefitting from strong demand for its groceries and household items as
Canadian consumers turn to discount stores amid high inflation.
Dollarama sells items ranging from kitchenware to party supplies, typically under $4 each.
However, the company recently raised its price point to $5, which analysts say should help
protect margins amid higher costs.
Dollarama’s stock is up 25% this year and trading at $79.50 per share.
