Dollarama, the popular Canadian dollar store retail chain, has reported better-than-expected earnings for the second quarter of this year, indicating a continuing trend of consumers seeking affordable everyday goods.
During the quarter ended July 30, Dollarama reported a rise in earnings to 245.8 million Canadian dollars ($181.4 million), or C$0.86 a share. This surpasses last year's earnings of C$193.5 million, or C$0.66 a share.
Analysts had predicted a smaller increase to C$0.77 a share for the quarter, according to FactSet.
Furthermore, the company's earnings before interest, taxes, depreciation, and amortization increased by nearly 24% to C$457.2 million.
Sales also experienced significant growth, reaching C$1.46 billion, compared to the previous year's C$1.22 billion. This exceeded analysts' expectation of a more moderate increase to C$1.4 billion.
Dollarama attributes this rise in sales to the addition of new stores in its network, as well as a considerable increase in comparable store sales. Comparable store sales rose by 15.5% compared to the same period last year when it saw a growth of 13.2%.
During this period, Dollarama opened a total of 18 new stores, an increase from the 13 stores opened during the previous year.
These strong Q2 results reinforce Dollarama's position as one of the leading retailers in the Canadian market.