UPDATE 2-Retailer Dollarama's quarterly profit tops estimates

Wed Apr 9, 2014 10:44am EDT
 
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(Updates with market reaction, analyst comment, additional details)

By Solarina Ho

April 9 (Reuters) - Canada's Dollarama Inc reported a higher-than-expected rise in quarterly earnings on Wednesday even though it had warned earlier this year that temporary store closures from an ice storm had hurt results in December.

The Montreal-based discount retailer, whose shares jumped more than 7 percent, also raised its quarterly dividend.

Net income rose nearly 8 percent to C$83 million ($76 million), or C$1.17 per share, in the fourth quarter ended Feb. 2 from C$77.1 million, or C$1.04 per share, a year earlier.

Analysts on average had expected earnings of C$1.10 per share, according to Thomson Reuters I/B/E/S.

Sales increased 4 percent to C$582.3 million, mainly because of the addition of 27 net new stores. The quarter had one fewer week than the year-earlier period.

The analysts' average estimate was C$575.8 million.

BMO Capital Markets analyst Peter Sklar said in a research note that analysts had lowered their estimates following the warning early in the year.   Continued...