(Reuters) – Canada’s Dollarama Inc 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)