Dollarama Q2 profit jumps as discount retailer increases sales, improves margins

MONTREAL – Dollarama Inc. (TSX: DOL) had a net profit of $49.8 million in its second quarter, up 32 per cent from the comparable period last year.

The profit amounted to 66 cents per diluted share in the 13 weeks ended July 29, up from $37.6 million or 50 cents per share in the comparable period last year.

Dollarama’s revenue was up 13.8 per cent, rising to $441 million from $387.5 million for the corresponding period last year.

Its profit margins also improved to 36.9 per cent of sales, up from 36.7 per cent.

Dollarama originally sold products for a dollar each but now offers items of up to $3 — a move that has helped boost its revenue and margins.

The Montreal-based company has also grown by expanding the number of stores in its network, which now total 735 locations across Canada.