Please use symbol entry at top right of page to search

Dollarama beats sales estimates on strong demand for consumables

June 8 (Reuters) - Canada's Dollarama Inc (DLMAF) beat estimates for quarterly sales on Wednesday as surging inflation fueled demand for the discount store's groceries and household essentials.

Top North American dollar stores are seeing an influx of consumers looking to save money as surging inflation drives up the prices of everything from edible oils to paper products and gas.

Consumables were snapped up the most this quarter while Easter decorations also saw high demand with most Canadians returning to offices and parties after pandemic-related restrictions relaxed.

The company's total sales rose 12.4% to C$1.07 billion ($853.20 million) in the first quarter, beating analysts' average estimate of C$1.05 billion, according to IBES data from Refinitiv.

The Canadian discount retailer's net income for the quarter ended May 1 rose to C$145.5 million, or 49 Canadian cents per share, from C$113.6 million, or 37 Canadian cents per share, a year earlier.

($1 = 1.2541 Canadian dollars) (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Devika Syamnath)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.