Canadian discount stores operator Dollarama has reported double digit sales growth in the second quarter (Q2) of fiscal 2013, driven by new store openings and continued organic sales growth.
Sales increased 13.8% to $441m in the quarter ended 29 July 2012, compared to $387.5m in the corresponding period of previous fiscal year.
Second quarter comparable store sales grew 7.2%, which consisted of a 4.5% increase in average transaction size combined with a 2.7% rise in the number of transactions.
In the reporting quarter, 56% of the company’s sales originated from products priced higher than $1, compared to 48% in the corresponding quarter last year.
The retailer said debit card penetration also grew in the quarter, as 39% of sales were paid through them, compared to 36% in the same quarter of fiscal 2012.
Earnings before interest, taxes, depreciation and amortization (EBITDA) surged 20.9% to $81.6m or 18.5% of sales in the second quarter.
Net earnings increased to $49.8m in the second quarter of fiscal 2013, compared to $37.7m in the corresponding period of fiscal 2012.
Dollarama’s store network grew to 735 stores as on 29 July 2012 from 680 stores on 31 July 2011.
The Montreal-based discounter offers a broad assortment of everyday consumer products, general merchandise and seasonal items.