Discount store operator Dollarama Inc. recorded a two per cent rise in profit for the second quarter of fiscal 2020, driven by comparable store sales and new store openings.
Profit rose to $143.2 million, or 45 cents per share, in the quarter, from $140.4 million or 42 cents per share in Q2 2019.
Sales increased by nine per cent to $946.4 million, from $868.5 million in the same period last year. Comparable store sales increased 4.7 per cent for the quarter ended August 2, well ahead of their 2.6 per cent growth in Q2 2019. The increase consisted of a 3.8 per cent increase in average transaction size, driven mostly by an increase in the number of units per basket, and a 0.9 per cent increase in the number of transactions. The expansion of product offerings through the addition of new SKUs also contributed.
Sales growth was fuelled by growth in comparable store sales and in the total number of stores over the past 12 months – from 1,178 stores on July 29, 2018 to 1,250 stores on August 4, 2019.