UPDATE 2-Dollarama profit beats as sales of higher-priced items rise

Thu Sep 10, 2015 12:25pm EDT
 
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* Higher-priced items, lower logistics costs boost margins

* Raises FY 2016 gross margin forecast

* Avg check-out value, no. of transactions up in Q2

* Q2 same-store sales up 7.9 pct

* Stock touches all-time high of C$86.22 (Adds details from statement, CEO and analyst comments, shares)

By Manish Parashar and Anannya Pramanick

Sept 10 (Reuters) - Canadian discount retailer Dollarama Inc reported a better-than-expected increase in quarterly profit and sales as customers bought more higher-priced items, boosting the company's margins and sending its shares to a record high.

Dollarama, which sells items priced up to C$3 ($2.26), said items priced higher than C$1 accounted for over three-quarters of sales in the second quarter, up from two-thirds a year earlier.

The demand for higher-priced items and a fall in logistics costs due to lower fuel prices, boost margins in the quarter and are expected to do so for the rest of the year, Dollarama said on Thursday.   Continued...