UPDATE 2-Bad weather hits Dollarama sales, shares sink [Reuters]
Dollar Tree, Inc. (DLTR)
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Source: Reuters
UPDATE 2-Bad weather hits Dollarama sales, shares sink | Reuters 3 Min Read (Adds share movement, analysts comments, background) By Debroop Roy Sept 13 (Reuters) - Canadian discount chain Dollarama Inc fell short of analysts’ estimates for profit in the second quarter as bad weather kept customers at home, prompting a cut in its same store sales forecast and sending shares up to 20 percent lower. Dollarama operates more than 1,000 stores across Canada and sells everything from kitchen ware to clothing accessories. The company, which has been facing increased competition from U.S.-based Dollar Tree, said it kept price rises in check during the quarter, leading to a 2.6 percent rise in comparable sales. That, however, was just half of analysts’ consensus forecast of a 5.26 percent rise, according to Thomson Reuters I/B/E/S. For fiscal 2019, the Montreal-based chain now expects comparable store sales growth in the 2.5 to 3.5 percent range, down from its earlier estimates of a 4-5 percent
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