(Montreal) An increase in sales allowed Dollarama to achieve a higher profit in the second quarter compared to the same period last year.
The Montreal company announced on Wednesday that it had achieved a net profit of $285.9 million, or $1.02 per share, during its quarter which ended on July 28.
That’s up from net income of $245.8 million, or 86 cents a share, in the same quarter last year.
The low-cost specialty retailer reported second-quarter sales rose 7.4 percent year-over-year to $1.56 billion.
The company explains this increase by the net addition of 58 stores to its network between July 30, 2023 and July 28, 2024, as well as by the growth of comparable store sales, which increased by 4.7% over one year.
According to Dollarama, the increase in comparable store sales was attributable to continued demand for consumer staples, despite a slowdown in demand for spring-summer products compared to the same period a year ago.
The company maintained its full-year 2025 guidance, continuing to expect to add 60 to 70 stores to its network and for comparable store sales to grow in the range of 3.5% to 4.5%.
In a statement, Dollarama President and CEO Neil Rossy said the second-quarter results demonstrate that consumers continue to rely on the “compelling” value offered in the company’s stores in a challenging economic environment.
“Our strong quarter-over-quarter traffic trends in our stores also confirm that our breadth of product offerings allows us to meet the needs of our customers,” he wrote.
Dollarama will hold a conference call to discuss its second-quarter results with analysts later Wednesday.
Company in this dispatch: (TSX: DOL)