Dollarama reports 5.5% increase in sales for third quarter

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%.

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% compared with a gain of 7.1% a year ago.

Dollarama says the increase came as the average transaction size fell 2.8%, but the number of transactions it saw rose 3.7% 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 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."