Proactive Investors - Dollarama Inc ({{TSX:DOL) reported a year-over-year increase in its third-quarter profits and sales as price-sensitive shoppers favored the Montreal, Canada-based discount store chain over other retailers.
It reported a 31.4% year-over-year increase in diluted earnings per share to C$0.92 from C$0.70, above estimates of C$0.86.
Sales rose 14.6% from C$1.29 billion in the year-ago quarter to C$1.48 billion, in line with Street expectations, which the company attributed to an increased store count and improved comparable store sales.
“Sustained consumer demand for our broad range of affordable everyday products and strong execution in the third quarter of fiscal 2024 drove double-digit same-store sales growth for a sixth consecutive quarter as well as over 31% earnings per share growth,” Dollarama CEO Neil Rossy said in a statement.
“Our financial and operational performance year-to-date reflects the strength and relevance of our value proposition and business model in a challenging macroeconomic context.”
Dollarama also raised its fourth-quarter guidance for comparable store sales to 11% to 12%, from its prior guidance range of 10% to 11%.
Shares of Dollarama traded 1.4% lower at C$97.65 as investors were likely hoping for a more dramatic upward revision to the company’s 4Q guidance.