Dec 4 (Reuters) - Canada's Dollarama ( DLMAF ) posted a
rise in third-quarter sales and profit on Wednesday, as it drew
more price-conscious consumers to its discounted non-essentials
such as household supplies and grocery.
Customers, taxed with the burden of still-high rent and
prices of food, are on the look-out for better deals and cheaper
alternatives for their day-to-day supplies, and have been wooed
in by the discounted offerings of stores.
Retailers including Dollarama ( DLMAF ) have been churning out
themed sales on products ranging from decorations, toys to
candies this holiday shopping season as they are locked in a
battle for attracting penny-pinching shoppers.
The dollar store also reiterated its annual comparable
store sales forecast.
Dollarama's ( DLMAF ) net sales rose 5.7% to C$1.56 billion ($1.11
billion) in the quarter ended Oct. 7, while net earnings per
share rose 6.5% to 98 Canadian cents per share.
The company's net sales and net earnings per share for
the quarter was in line with analysts' estimates, according to
data compiled by LSEG.
The company's quarterly gross margin was 44.7% of sales,
down from 45.4% a year ago, on rising logistics and freight
costs.
Fellow Canadian supermarket retailer Loblaw Companies ( LBLCF )
had missed third-quarter revenue estimates, hurt by a slowdown
in demand for its non-essential goods.
($1 = 1.4056 Canadian dollars)
(Reporting by Neil J Kanatt in Bengaluru)