Canadian dollar-store operator Dollarama reported an increase in sales and an improvement in net earnings for the third quarter ended Nov. 3. The quarter was characterized by continued growth in the store network and solid comparable store sales growth.
Sales for the quarter increased by 14.2% to $522.9 million from $458 million in the year-ago period. The increase was driven, in part, by the growth in the number of stores in the past 12 months, from 761 stores on Oct. 28, 2012 to 847 stores on Nov. 3, 2013.
Comparable store sales increased 2.9% in average transaction size and 1.9% in the number of transactions. In this quarter, 62% of the company’s sales originated from products priced higher than $1 compared to 57% in the corresponding quarter last year. Debit card penetration also increased, as 41% of sales were paid with debit cards compared to 38% in the corresponding period of the previous fiscal year.
"We are very satisfied with our continued growth in comparable store sales in the third quarter. The consistent growth and strength of our operating results are a testimony to the success of our merchandising strategy, the compelling value of our product offering and the dedication of our employees," stated Larry Rossy, chairman and CEO.