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

Credit: REUTERS/CARLO ALLEGRI

Canada's Dollarama Inc beat quarterly same-store sales estimates and raised its full-year comparable sales forecast on Thursday as the discount store operator attracted more shoppers.

Recasts first paragraph, adds same-store sales

June 13 (Reuters) - Canada's Dollarama Inc DOL.TO beat quarterly same-store sales estimates and raised its full-year comparable sales forecast on Thursday as the discount store operator attracted more shoppers.

The Montreal-based company has been keeping price hikes to a minimum as it tries to fend off rivals such as Walmart Inc's WMT.N Canada unit and Dollar Tree DLTR.O.

Dollarama raised its full-year same-store sales growth forecast to a range of 3%-4%, from a previous forecast of 2.5%-3.5%.

The company reported a 5.8% increase in same-store sales in the first quarter ended May 5, beating analysts' average estimates of 2.9%, according to IBES data from Refinitiv, helped by a jump in number of transactions and units per basket.

Dollarama's net income rose to C$103.5 million ($77.8 million), or 33 Canadian cents per share, in the first quarter 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.

Total sales rose 9.5% to C$828 million.

($1 = 1.33 Canadian dollars)

(Reporting by Debroop Roy in Bengaluru; Editing by Sriraj Kalluvila)

((Debroop.Roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1690; Reuters Messaging: debroop.roy.thomsonreuters.com@reuters.net))

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