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Dollarama raises full-year same-store sales forecast after beating estimates


Reuters


June 13 (Reuters) - Canadian discount retailer Dollarama Inc raised its full-year comparable sales forecast on Thursday after posting a stronger-than-expected rise in quarterly revenue as limited price hikes attracted shoppers who also spent more on average.

The Montreal-based company has been keeping price increases to a minimum as it tries to fend off rivals such as Walmart Inc'sCanada unit and Dollar Tree Inc .

Dollarama, whose products are priced between C$1 and C$4, has also been trying to cut down checkout time and has been investing to expand its online business.

Average transaction size rose 4.9%, indicating that customers on average were buying more products at Dollarama's stores. Total number of transactions climbed 0.9%.

"Fiscal 2020 is off to a good start for Dollarama, with strong top line growth and comparable store sales, including a notable increase in basket size and traffic," Chief Executive Officer Neil Rossy said in a statement.

Dollarama, which offers everything from kitchen ware to clothing accessories, said it now expects full-year same-store sales to grow between 3% and 4%. This compares with its previous forecast of a 2.5% to 3.5% rise.

Total sales increased 9.5% to C$828 million, above analysts' average estimate of C$813.05 million.

Net income rose to C$103.5 million ($77.8 million), or 33 Canadian cents per share, in the three months ended May 5, from C$101.5 million, or 31 Canadian cents, a year earlier.

Analysts on average had expected the company to post a profit of 34 Canadian cents per share.

The company's shares have gained about 30% so far this year, compared with the 13.3% rise for the Toronto Stock Exchange .

($1 = 1.33 Canadian dollars)






This article appears in: Stocks , Politics
Referenced Symbols: DLTR ,



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