Dollarama reports 7.3% increase in profit

Dollarama Inc. says its first-quarter profit increased to $101.6 million from $94.7 million last year, mainly as a result of increased sales and cost controls.

The Montreal-based company's net income amounted to 92 cents per diluted share, up from 82 cents per share in last year's fiscal first quarter.

Sales for the 13 weeks ended April 29 were $756.1 million, up 7.3% from $704.9 million in the comparable period a year earlier.

Comparable store sales grew 2.6% from last year, while the number of stores grew by 62 locations to 1,170.

READ: Dollarama testing self-checkout to offset impending wage hike

The discount retailer said its cost control efforts and productivity improvements had reduced overhead costs as a percentage of sales and mitigated the impact of minimum wage increases, which went into effect in Ontario on Jan. 1.