The Globe and Mail reports in its Friday, Dec. 12, edition that Dollarama on Thursday raised its annual sales forecast after beating analysts' estimates for third quarter results.
A Reuters dispatch to The Globe reports that discounted staples, cleaning supplies and personal care items are attracting budget-conscious consumers and boosting sales at dollar stores amid ongoing inflation.
Chief executive officer Neil Rossy said the business was sustaining growth in an "unpredictable" economic environment thanks to its cost discipline and business expansion in Latin America and Australia.
Dollarama expects fiscal 2026 comparable sales for its Canadian segment to grow in the range of 4.2 per cent to 4.7 per cent, compared with previous expectations of a 3-per-cent to 4-per-cent rise.
It forecast annual margin in the range of 45 per cent to 45.5 per cent compared with its prior target of 44.2 per cent to 45.2 per cent.
Net sales for the third quarter ended Nov. 2 came in at $1.91-billion (U.S.), above analysts' average estimate of $1.87-billion (U.S.).
Comparable store sales in Canada in the quarter rose 6 per cent, driven by a 4.1-per-cent increase in transactions and a 1.9-per-cent rise in average basket size.
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