Dollarama beats profit estimates on Halloween spending boost

Dollarama Inc beat Wall Street expectations for quarterly profit on Wednesday as the discount store operator benefited from strong demand for its higher-margin seasonal products, such as Halloween decorations and candy.

Customers have started spending on decor and party supplies as a majority of the Canadian population is vaccinated, allowing get-togethers and social events to take place.

Total sales rose to C$1.12 billion ($887.76 million) in the quarter, from C$1.06 billion a year earlier, Dollarama said.

The company’s net income rose to C$183.4 million, or 61 Canadian cents per share, in the quarter ended Oct. 31, from C$161.9 million, or 52 Canadian cents per share a year earlier.

Analysts were expecting the company to earn 57 Canadian cents per share, according to Refinitiv IBES data.

($1 = 1.2616 Canadian dollars)

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Amy Caren Daniel)