Dollarama sales jump 12% as discount chain benefits from inflation-weary consumers
Dollarama Inc. has reported a first-quarter profit of $145.5 million, up from $113.6 million in the same quarter last year, as its sales rose 12.4 per cent compared with a year ago.
Dollarama CEO Neil Rossy says with the lifting of COVID-19 restrictions early in the quarter the company saw a double-digit increase in customer traffic, coupled with strong demand for everyday consumables and seasonal products.
The retailer says its profit amounted to 49 cents per diluted share for the 13-week period ended May 1, up from a profit of 37 cents per diluted share in the same quarter a year earlier.
Sales in the first quarter of the company's 2023 financial year totalled $1.07 billion, up from $954.2 million.
The increase in sales came as comparable store sales rose 7.3 per cent.
The growth includes a 14.4 per cent increase in the number of transactions, but a 6.2 per cent drop in average transaction size.