CORRECTED-UPDATE 1-Dollarama profit beats as sales of higher-priced items rise

Thu Sep 10, 2015 10:30am EDT
 
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(Corrects to remove reference to dividend increase in paragraph 8. The company's dividend was unchanged)

Sept 10 (Reuters) - Canadian discount retailer Dollarama Inc reported better-than-expected quarterly profit and sales as customers bought more higher-priced items, boosting its average revenue per transaction.

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

Dollarama said on Thursday that its same-store sales rose 7.9 percent. Average value per transaction increased 6.2 percent and the number of transactions rose 1.5 percent.

The company's rivals include Dollar Tree Inc, Big Lots Inc and big-box retailers such as Wal-Mart Stores Inc.

Dollarama's net income jumped to C$95.5 million, or 74 Canadian cents per share, in the quarter ended Aug. 2 from C$68.9 million, or 51 Canadian cents per share, a year earlier.

Total sales rose 14 percent to C$653.3 million.

Analysts on average had expected a profit of 61 Canadian cents per share and sales of C$562.9 million, according to Thomson Reuters I/B/E/S.

The company's shares closed at C$80.21 on the Toronto Stock Exchange on Wednesday. Up to Wednesday's close, the stock had risen 35 percent this year. ($1 = C$1.33) (Reporting by Manish Parashar in Bengaluru; Editing by Kirti Pandey)