Sales rise at Dollarama, beating expectations

While some specialty chains struggle to meet earnings predictions, Dollarama reported better-than-expected second quarter results. The Montreal-based discount chain’s net income was $106.4 million for the second quarter of fiscal 2017, ended July 31, 2016 — up 11.4% from $95.5 million for the same period last year.



Sales increased 11.6% to $729 million for the 13-week period, up from $653.3 million a year ago. For the quarter, same-store sales grew 5.7% over the previous year; average transaction sizes increased 4.6%, and the number of transactions climbed 1.0%.



Dollarama credited the gains to “the careful execution of our merchandising strategy, and the implementation of operational improvements,” Neil Rossy, the chain’s president and CEO said in a company statement.



Store growth is also on the rise, with 1,051 stores open as of July 31, 2016, compared to 989 stores on August 2, 2015. The discount chain is on pace to open 60 to 70 new stores by the end of its fiscal year, Rossy added.