December 7, 2011 / 12:52 PM / in 6 years

UPDATE 2-Dollarama Q3 profit beats as sales rise

* Q3 EPS C$0.55 vs est EPS C$0.53

* Q3 sales up 12.5 pct to C$400.3 mln

* Same-store sales up 5.1 pct from last yr (Adds details, compares with analyst estimates)

Dec 7 (Reuters) - Dollarama Inc, Canada’s largest operator of dollar stores, reported a market-beating third-quarter profit, helped mainly by sales from its new stores.

Dollarama, which went public in 2009, is growing quickly as bargain-hunting Canadians who flocked to its stores during the economic downturn, stayed on after the economy recovered.

Net income rose 33.5 percent to C$41.8 million, or 55 Canadian cents per share.

The company, which has more than 600 stores across Canada, saw sales rising 12.5 percent to C$400.3 million on contributions from the 51 new stores opened since October 2010.

Analysts on average had expected earnings of 53 Canadian cents a share, according to Thomson Reuters I/B/E/S.

Dollarama, whose investors include Bain Capital, said sales at stores open for at least a year, a key indicator for retailers, rose 5.1 percent.

Shares of Montreal-based Dollarama, which have gained 20 percent in value over the past three months, closed at C$40.32 on Tuesday on the Toronto Stock Exchange. (Reporting by Maneesha Tiwari in Bangalore; Editing by Sreejiraj Eluvangal) ((maneesha.tiwari@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: maneesha.tiwari.thomsonsonreuters.com@reuters.net

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