The company now projects comparable store sales growth between 4% and 4.5%, an upward revision from its previous forecast of 3% to 4%. This optimism is backed by a 5.4% increase in domestic comparable sales, fueled by a 3.7% rise in transaction volume and a 1.7% boost in the average spend per customer. To meet this heightened demand, Dollarama has raised its annual store opening target to between 65 and 75 locations.
In section Market Quotes
Dollarama Raises Guidance as Inflation Drives Value Shopping
Canadian consumers are flocking to discount aisles as household budgets tighten, prompting Dollarama to lift its full-year sales outlook. The retailer reported a second-quarter profit of 349.3 million Canadian dollars, eclipsing analyst expectations as traffic and transaction sizes surged across its expanding store network.
Financial performance for the quarter ended Aug. 2 mirrored this momentum, with revenue climbing 17.6% to 2.03 billion Canadian dollars. Earnings before interest, taxes, depreciation and amortization reached 653 million Canadian dollars, comfortably beating the 639.8 million forecast by analysts. Beyond domestic operations, the company’s international footprint is yielding results: the Australian segment contributed 184.8 million Canadian dollars following the acquisition of The Reject Shop, while the Latin American Dollarcity chain saw sales jump 30%, supported by a footprint that now spans 781 stores.
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