Dollarama Cuts Back on Inventory, Acquires More Stores

A popular Canadian dollar store reports double-digit sales growth for the month of October, good news for the struggling dollar store sector.

Dollarama Inc. (OTC:DLMAF) reports that same-store sales increased 11.5 percent in October and overall revenue jumped 10.9 percent for the month. The company added 113 new Dollarama stores during the quarter and 361 over the last 12 months.

The business’s reporting for the first three quarters of the year show growth in 11 of 12 calendar months. Dollarama Inc. Inc.’s third quarter net income for the period ending Sept. 29 rose to $77.8 million or $1.26 per diluted share.

In addition to positive same-store sales, Dollarama’s improved margins and production line efficiencies in the quarter helped boost the company’s cash flow to $173.3 million from $156.2 million a year ago.

Dollarama Inc.’s all-important holiday season will be another key indicator of the retailer’s success. Consumers often buy holiday gifts such as greeting cards, toys and decorations at these types of stores.

“We look forward to offering our customers a beautiful array of decorations and new products for our stores during the holiday season,” Dollarama CEO Larry Rossy said in a prepared statement.

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