Dollar store operator Dollarama Inc reported a 10 per cent rise in quarterly profit on Wednesday as people spent more in its stores.

The company's net income rose to $110.06 million, or 92 Canadian cents per share, in the third quarter ended Oct. 30, from $100.08 million, or 78 Canadian cents per share, a year earlier.

Same-store sales rose 5.1 per cent.

The average transaction size increased 5.8 per cent while the number of transactions fell 0.6 per cent.

Sales rose 11.2 per cent to $738.71 million.