Dollarama’s (DOL) second-quarter financial results beat analysts’ consensus expectations as Canadian consumers continue to hunt for bargains in a high-interest rate environment.
The Montreal-based company reported earnings per share (EPS) of $1.02, which beat forecasts that called for a profit of $0.97.
Revenue during the quarter totaled $1.56 billion, which was largely inline with analyst estimates. Sales rose 7.4% from a year earlier.
Management at Dollarama attributed the strong results to continued demand for lower cost items among financially stressed consumers in Canada.
The company said that consumers continue to struggle with rising living costs and are aggressively hunting for bargains and cheaper alternatives when shopping for essential items.
Dollarama also benefited during Q2 from lower costs for inbound shipping and logistics. That helped lift the company’s gross margin to 45.2% from 43.9% a year ago.
Looking ahead, Dollarama reiterated its fiscal 2025 sales forecast that calls for an increase of 3.5% to 4.5%.
The stock of Dollarama has risen 32% so far this year and currently trades at $125.28 per share.
