Dollarama Inc (TSX:DOL) Canadian-listed shares gained 4% to $92.93 in late-morning trading on Wednesday after the discount retailer reported better-than-expected financial results for its second quarter of 2023.
The company’s earnings per share (EPS) for the period increased 30.3% to $0.86, while its revenue rose 19.6% to $1.46 billion as new stores were opened and same-store sales improved.
Analysts polled by Reuters expected 2Q EPS of $0.77 on sales of $1.4 billion.
Comparable store sales for the quarter increased 15.5%, as the company said it continues to see higher than historical demand for consumables.
“Dollarama continues to deliver unparalleled value to a growing number of consumers seeking affordable everyday products at low price points, and we expect this strong demand to persist through the second half of the year in the current macro-economic context," Dollarama CEO Neil Rossy said in a statement.
The company also raised its quarterly dividend by 28% to $0.078 per share.
Looking ahead, Dollarama stated that it now expects comparable store-sales growth of between 10% and 11% for fiscal 2024, compared with between 5% and 6% estimated previously.
Shares of Dollarama have advanced 16% year to date.
Contact Sean at sean@proactiveinvestors.com