Dollarama employee restocks shelves at the store in Vaughan, Ont.JENNIFER ROBERTS
Discount retailer Dollarama Inc. says its second-quarter profit was down due to the impact of foreign exchange but operating profit and overall sales were up from the same time last year.
Profit was just under $21-million or 28 cents per diluted share, down from $26.6-million or 61 cents per share, the Montreal company reported Tuesday.
The year-earlier results included a $21.3-million gain on foreign exchange derivatives, compared with about $500,000 in the most recent quarter.
The number of shares outstanding has also increased substantially over the past year, diluting Dollarama's earnings per share.
Operating profit improved to $47.1-million from $35.2-million a year earlier.
Dollarama's sales grew to $343.5-million from $303.4-million, while comparable store sales grew 7.8 per cent.
"We are pleased with our second-quarter results" Larry Rossy, the company's chief executive, said in a release before stock markets opened.
"We sustained healthy growth through the opening of new stores and increased comparable store sales. We continue to provide our customers quality products, great value, as well as a convenient shopping experience. We also remain committed to tightly managing our operating and office expenses and generating value for our shareholders.
Dollarama, founded in 1992, is Canada's largest dollar store operator with 623 locations outlets across the country.