Dollarama is reporting a big same store sales spike and an earnings beat.

The discount retailer’s profits spiked 15% for the quarter ending Oct. 30, hitting $201.6 million, compared with a profit of $183.4 million in the same quarter last year.

The company says sales for the quarter totaled $1.29 billion, up from $1.12 billion a year earlier, with comparable-store sales surging 10.8%. Dollarama reports that number of transactions climbed 10.3% and the average basket size gained 0.4%.

In its guidance for the year, Dollarama says it now expects comparable-store sales growth for its current financial year to be in a range of 9.5% and 10.5%, compared with earlier estimates in the range of 6.5% and 7.5%.

Dollarama says it expects to continue to benefit from strong demand for its affordable, everyday items in the context of inflation, including stronger-than-historical demand for lower-margin consumable products.

President and CEO Neil Rossy said that as inflationary pressure on the consumer persists, the retailer expects “strong demand for consumable products to continue stimulating topline growth through to the end of the fiscal year.”

In today’s earnings call, Rossy said that it will stay true to the retailer’s brand promise of convenience and compelling value. He says that going into its busiest quarter, its location, value and strong team executions will keep customers coming back. It has also been procuring “compelling” products across various categories, including the further introduction of items ranging from $4 to $5.

Last year, Rossy says due to restrictions, shoppers shopped earlier during the holidays, while now it’s more in line with pre-COVID trends.

Dollarama expects a “busy Q4” on the real estate front, and wants 60 to 70 net new stores, and the company says it is buying industry properties near its existing centralized logistics network.

The company says general, administrative and store operating expenses for the third quarter increased by 14.3% to $181.8 million. According to Rossy, the hike in SG&A is attributable largely to wage growth. With double digit traffic increases, it means more staffing hours need to be added for an inventory rebuild.