Canadian discount retailer Dollarama Inc. (TSX:DOL) beat estimates for quarterly sales as consumers hoarded groceries and other essentials amid the coronavirus pandemic.
Deemed an essential business, Dollarama saw higher demand for products such as cleaning supplies and packaged foods in March and April as most of its stores remained open while the coronavirus crisis closed many Canadian businesses.
Dollarama said it witnessed a 22.6% increase in average transaction size as consumers bought larger quantities of goods. Same-store sales, excluding temporarily closed stores, rose 0.7%, while analysts on average had expected a 1.76% decline.
Sales rose to $844.8 million from $828 million, beating estimates of $839.8 million. Excluding items, it earned 27 Canadian cents per share, compared with Wall Street estimate of 26 Canadian cents, according to Refinitiv.
Dollarama also said its board had approved a quarterly cash dividend of 4.4 Canadian cents per common share. Dollarama declined to provide a fiscal 2021 outlook, citing uncertainty caused by the COVID-19 pandemic.