Canada's Dollarama beats quarterly sales estimates on robust demand

(Reuters) -Dollarama's quarterly sales jumped, edging past market estimates, on Wednesday, as shoppers looking for affordable household supplies and groceries drove demand at the Canadian discount retailer.

Concerns over still-high inflation and rising cost-of-living have prompted Canadian customers to increasingly turn to cheaper and discounted alternatives for everyday essentials, ranging from pantry staples to cleaning supplies, driving strong sales at dollar-store chains such as Dollarama.

Off-price and discount retailers in North America such as Ross Stores and TJX Companies have also seen strong demand in recent quarters as consumers seek value-for-money products in an economy strained by growth concerns and trade tariffs.

Dollarama's comparable sales grew 4.9% during the second quarter, while analysts on average estimated a 4.2% rise, according to data compiled by LSEG.

The company's net sales increased 10.3% to C$1.72 billion ($1.24 billion) during the three months ended August 3, compared with the estimate of C$1.71 billion.

Its adjusted net earnings per share of C$1.16 was in line with expectations.

($1 = 1.3817 Canadian dollars)

(Reporting by Anshi Sancheti in Bengaluru; Editing by Shilpi Majumdar)