Dollarama (DOL) has reported that its profit rose 27% to $245.8 million for the quarter ended July 30 as Canadians embrace discount retailers amid the current inflationary environment.
The Montreal-based company said that its revenue in the quarter amounted to $1.46 billion, up 20% from the same period of 2022.
Comparable store sales for the quarter rose 15.5% as the number of transactions rose 12.9% and the average transaction size increased by 2.3%.
The strong financial results come despite Dollarama introducing a new $5 price point. The company launched $5 items last year as inflation soared, positioning it as a way to help the company manage cost pressures.
Executives at Dollarama said consumers continue to seek discounts as inflation and interest rates remain high, and that Canadians have accepted the company’s $5 items.
Dollarama had 1,525 stores at the end of its most recent quarter, up from 1,444 a year earlier. The company has a goal to have 2,000 stores operating nationwide by 2031.
The stock of Dollarama has risen 23% over the last 12 months to trade at $94.66 per share.