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.
