Canada's Dollarama reports better-than-expected profit
(Reuters) - Canadian dollar store operator Dollarama Inc (DOL.TO: Quote) reported a better-than-expected quarterly profit on Wednesday as people spent more in its stores.
The company's same-store sales rose 5.1 percent, aided by a 5.8 percent rise in the average checkout bill, compared with a 5.4 percent rise last year, while the number of transactions fell 0.6 percent.
The Montreal-based retailer opened 18 stores in the third quarter ended Oct. 30, bringing the total number of stores to 1,069.
Dollarama's general, administrative and store operating expenses rose about 5.3 percent to C$116.97 million.
However, expenses as part of sales were 15.8 percent, compared with 16.7 percent in the year-ago period.
The company's net income rose to C$110.06 million ($82.89 million), or 92 Canadian cents per share, in the quarter, from C$100.08 million, or 78 Canadian cents per share, a year earlier.
Analysts on average had expected a profit of 86 Canadian cents per share, according to Thomson Reuters I/B/E/S.
Sales rose 11.2 percent to C$738.71 million.
(Reporting by Ahmed Farhatha in Bengaluru; Editing by Martina D'Couto)
© Thomson Reuters 2017 All rights reserved.