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Dollarama's third-quarter profit, sales rise on demand for discounted products
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Dollarama's third-quarter profit, sales rise on demand for discounted products
Dec 4, 2024 5:02 AM

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)

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