Dollarama profit slips, despite higher sales

Discount retailer Dollarama Inc. says its second-quarter net income was down because of the impact of foreign exchange losses, but operating income and overall sales were up from the same time last year.

Net income 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 income 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.