Canadian dollar store operator Dollarama Inc (DOL.TO) reported a higher-than-expected profit as sales rose 11.6 per cent.

The company opened 13 stores in the second quarter, bringing the total number of stores to 1,051.

Dollarama's general, administrative and store operating expenses rose about 7 per cent. However, the expenses as a part of sales were 15.2 per cent, compared with 15.9 per cent a year earlier.

Gross margins remained flat at 38.4 per cent.

The retailer said same-store sales rose 5.7 per cent in the quarter ended July 31, compared with 7.9 per cent last year.

The company's net income rose 11.4 per cent to $106.4 million, or 88 Canadian cents per share.

Revenue rose to $729 million from $653.3 million.

Analysts on average had expected a profit of 84 Canadian cents per share and revenue of $726.55 million.