Canada · Delayed Price · Currency is CAD Dollarama Earnings Call Transcripts
Fiscal Year 2026
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Fiscal 2026 saw double-digit sales and EPS growth, driven by strong Canadian and Latin American performance, while international expansion advanced with new markets in Mexico and Australia. Fiscal 2027 guidance anticipates continued SSS growth, but macroeconomic and geopolitical risks may pressure margins.
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Q3 delivered over 22% sales growth, double-digit earnings gains, and strong same-store sales, with raised full-year guidance for both SSS and gross margin. Expansion continued in Canada and Latin America, while Australia remains in early transformation.
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Q2 sales grew 10.3% year-over-year, driven by strong Canadian same-store sales and international expansion, including the first Dollarcity in Mexico and the acquisition of Australia's TRS. Net earnings rose 12.5%, and guidance for Canadian same-store sales and gross margin was raised to the upper end of the range.
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Q1 sales grew 8.2% year-over-year with 4.9% SSS growth, driven by strong consumables and seasonal sales. Gross margin improved to 44.2%, and EBITDA margin reached 32.6%. Expansion continues in Canada and Latin America, with imminent entry into Mexico and progress on the Australian acquisition.
Fiscal Year 2025
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Q4 and full-year results exceeded guidance, with strong SSS growth, margin improvement, and robust expansion in Canada and Latin America. Fiscal 2026 guidance anticipates normalization, margin pressures from tariffs, and continued disciplined growth and capital returns.
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A definitive agreement was reached to acquire Australia's largest discount retailer, TRS, for AUD 6.68 per share, a 108% premium, with plans to fully integrate and expand the network to 700 stores by 2034. The deal is expected to unlock significant synergies and long-term growth, pending regulatory and shareholder approvals.
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Q3 EPS grew 6.5% to $0.98 with 3.3% same-store sales growth, driven by essentials demand. Store target raised to 2,200 by 2034, and a new western logistics hub announced. Gross margin declined to 44.7% due to higher consumables and logistics costs.
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Q2 fiscal 2025 saw strong sales and margin growth, driven by consumables and robust traffic, with EPS up 18.6% and Dollarcity’s expansion accelerating. Guidance for SSS and margins remains unchanged, with normalization expected in H2 and continued focus on value and efficiency.
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Q1 saw 8.6% sales growth and a 22.2% EPS increase, driven by strong demand for essentials and robust traffic. Dollarcity ownership rose to 60%, with plans to enter Mexico in 2026 and a higher long-term store target. Guidance calls for normalized same-store sales and stable margins.