Dollarama posts profit, same-store sales below estimates

(Reuters) - Canadian discount store chain Dollarama Inc missed analysts’ estimates for second-quarter profit and comparable-store sales on Thursday, hit by lower sales during the Canada Day weekend.

Same-store sales rose 2.6 percent in the reported quarter while analysts were expecting a 5.26 percent rise, according to Thomson Reuters I/B/E/S.

“Overall sales results were also impacted by lower sales of Canada Day seasonal and related souvenir products,” the company said.

The Montreal-based company’s net income rose to C$141.8 million ($109.05 million), or 43 Canadian cents per share, in the second quarter ended July 29, from C$131.8 million, or 38 Canadian cents per share, a year earlier.

Excluding items, the company earned 43 Canadian cents per share. Sales rose 6.9 percent to C$868.5 million.

Analysts on average had expected the company to earn 44 Canadian cents per share on revenue of C$887.8 million.

Reporting by Debroop Roy in Bengaluru; Editing by Shounak Dasgupta