Dollarama Australia has reported higher sales for the second quarter, but its net loss also widened as the business undergoes a transformation following the acquisition of The Reject Shop.

The business saw sales for the quarter ended August 2 jump over 600 per cent to $185.7 million, as the prior-year period only included results for 13 days from July 22 to August 3.

The Canada-based discount retail chain completed the acquisition of The Reject Shop last July, marking its entry into the Australian market.

For a similar reason, net loss increased significantly from $262,400 last year to $13.7 million.

During the quarter, the company renovated 25 stores and opened four net new stores in Australia, bringing the total number of stores with Dollarama’s layout and fixtures to 60 locations. As of August 2, the chain had 414 stores in the country. 

Dollarama expects a net loss for the Australian segment for the full fiscal year, attributed to ongoing business transformation initiatives and investments in the market.