Dollarama boosts first-quarter profit to $45.6 million on higher sales revenue

MONTREAL – Dollarama Inc. (TSX:DOL) says the addition of 85 stores over the past year and strong growth at established locations helped push up revenue by 12 per cent.

The Montreal-based discount chain also reported a improved profit of $45.6 million or 62 cents per share of net income in the first quarter ended May 5.

That was up from $42.6 million or 56 cents per share a year earlier as sales increased to $448.1 million from $398.0 million.

However, Dollarama’s growth was below analyst estimates, which called for 67 cents per share of earnings and $449 million of revenue.

Comparable-store sales were up 3.7 per cent, due to larger average transaction values at established locations but the number of transactions fell 0.9 per cent.

Dollarama has been gradually adding items that cost more than $1 each.