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June 11 (Reuters) - Canada's Dollarama DOL.TO beat quarterly sales and profit estimates on Thursday, as cost-conscious shoppers continued to flock to the discount retailer for low-priced essentials.

The company, which sells most of its products for between C$1 and C$5, also maintained its annual forecast.

Sticky inflation has pushed shoppers to seek cheaper alternatives to everyday goods, from pantry staples to cleaning supplies, though demand trends have been uneven across the sector.

U.S. dollar store peers Dollar Tree DLTR.O and Dollar General DG.N forecast muted annual sales earlier this month, flagging a cautious consumer spending environment.

The company posted net sales of C$1.85 billion ($1.32 billion) for the first quarter, compared with analysts' average estimate of C$1.82 billion, according to data compiled by LSEG.

It reported quarterly net earnings of C$302.3 million, or C$1.11 per share, in the three months ended May 3, 2026, compared to C$273.8 million, or 98 Canadian cents per share, from a year ago.

On an adjusted basis, the company earned C$1.05 compared to the expectation of 99 Canadian cents per share.

The company's first-quarter gross margin was 43.9% of sales, down from 44.2% a year ago.

The retailer maintained its annual forecast for comparable store sales growth of 3% to 4% and gross margin of 45% to 45.5%.

Dollarama last year bought Australia's discount chain The Reject Shop, in a move to expand its business outside Canada.

($1 = 1.3981 Canadian dollars)