Dollarama sales, profit way up after growing total number of stores

Dollarama reported its third-quarter profit and sales rose compared with a year ago and raised its guidance for comparable-store sales.

The retailer says it earned $261.1 million or 92 cents per diluted share for the 13-week period that ended Oct. 29, up from a profit of $201.6 million or 70 cents per diluted share a year earlier.

Sales totalled $1.48 billion, up from $1.29 billion in the same quarter last year.

Dollarama says the increase in sales was driven by growth in its total number of stores and increased comparable-store sales, which evaluates sales at a company's existing stores.

Comparable-store sales grew 11.1 per cent as the number of transactions rose 10.4 per cent and the average transaction size gained 0.6 per cent.

In its outlook, the company says it now expects comparable-store sales for its full year to grow 11 to 12 per cent, up from earlier expectations for growth of 10 and 11 per cent.