12/09/2015 11:25 EST | Updated 12/09/2016 05:12 EST

Dollarama Becomes A $1.25 Store, Thanks To Falling Loonie

MONTREAL — Dollarama Inc. (TSX:DOL) says it has been able to manage the impact of Canada's weaker dollar, contributing to substantial growth in sales and profit during the discount retailer's third quarter.

The company, which originally sold virtually all items for $1 each, says it has started using $1.25 as its new reference price.

During the third quarter, 59.7 per cent of sales came from prices above $1.25, compared with 54.1 per cent a year ago.

Sales were up 13 per cent from the same time last year, in part because of sales growth at established locations plus the addition of 77 stores, including 16 in the third quarter.

Net income rose to $100.1 million, or 78 cents per share, with $664.5 million of sales. Year-earlier net income was $73 million, or 55 cents per share, and sales totalled $588 million.

Comparable-store sales for the quarter ended Nov. 1 grew by 6.4 per cent, which was partly a result of a bigger average transaction as well as more transactions.