Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

Dollarama Raises Full-Year Comparable-Store Sales Forecast

Canadian discount retailer Dollarama Inc's raised its full-year comparable-store sales forecast on Thursday, after reporting better-than-expected quarterly sales, benefiting from investments in its online business and higher demand for its products.

The Montreal-based company, whose products are priced between C$1 and C$4, has been trying to fend off competition from the likes of Walmart Inc's Canada unit and Dollar Tree and boost sales by keeping price hikes at a minimum.

'Compelling Product Offering'

"Customers are responding positively to our compelling product offering and various merchandising tactics, as demonstrated by our strong top line performance for a second consecutive quarter," chief executive officer Neil Rossy said.

Dollarama, which offers everything from kitchen ware to clothing accessories, now expects full-year comparable-store sales growth in the range of 3.5% to 4.5% compared with the previous range of 3% to 4%.

The company's net income rose to C$143.2 million (€98.67 million), or 45 Canadian cents per share, in the second quarter, from C$140.4 million (€96.74 million), or 42 Canadian cents, a year earlier.

Analysts on average had expected the company to post a profit of 46 Canadian cents per share, according to IBES data from Refinitiv.

Comparable-store sales rose 4.7% in the quarter ended 4 August. Sales rose to C$946.4 million (€652.08 million) from C$868.5 million (€598.41 million).

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days