Dollarama Inc. reported Wednesday its financial results for the first quarter ended May 4, 2025, saying it opened 22 net new stores in Q1 with sales and net earnings increasing.
“We are off to a strong start to fiscal 2026 as we successfully pursue our Canadian growth, with comparable store sales supported by sustained consumables demand and positive seasonal offering performance. Dollarcity also continued to deliver value and advance its expansion plans, with the first stores in Mexico slated to open imminently,” said Neil Rossy, President and CEO.
“With The Reject Shop shareholders set to vote later this month, our acquisition of Australia’s largest discount retailer remains on track and is expected to close by the end of July. We’re excited to begin this new chapter of growth, while staying focused on our core Canadian business and Dollarcity partnership.”
Fiscal 2026 First Quarter Results Highlights Compared to Fiscal 2025 First Quarter
- Sales increased by 8.2% to $1,521.2 million, compared to $1,405.8 million
- Comparable store sales increased by 4.9%, over and above 5.6% growth in the corresponding period of the previous year
- EBITDA increased by 18.8% to $496.2 million, representing an EBITDA margin of 32.6%, compared to 29.7%
- Operating income increased by 20.7% to $388.8 million, representing an operating margin of 25.6%, compared to 22.9%
- Net earnings increased by 26.9% to $273.8 million, resulting in a 27.3% increase in diluted net earnings per common share to $0.98, compared to $0.77
- Unrealized gain of $10.4 million relating to the derivative on our equity-accounted investment, positively impacting EBITDA margin by 70 basis points and diluted net earnings per common shares by $0.03
- 22 net new stores opened, compared to 18 net new stores
Founded in 1992 and headquartered in Montréal, Dollarama is a recognized Canadian value retailer offering a broad assortment of consumable products, general merchandise and seasonal items both in-store and online. With stores in all Canadian provinces and two territories, its 1,638 locations across Canada provide customers with compelling value in convenient locations, including metropolitan areas, mid-sized cities and small towns.
Dollarama also owns a 60.1% interest in Dollarcity, a growing Latin American value retailer. Dollarcity offers a broad assortment of consumable products, general merchandise and seasonal items at select, fixed price points up to US$4.00 (or the equivalent in local currency) in 644 conveniently located stores in Colombia, Guatemala, El Salvador and Peru.
During its first quarter ended March 31, 2025, Dollarcity opened 12 net new stores, compared to 15 net new stores in the same period last year. As at March 31, 2025, Dollarcity had a total of 644 stores, with 377 locations in Colombia, 109 in Guatemala, 77 in El Salvador and 81 in Peru. This compares to 632 stores as at December 31, 2024, said Dollarama.
Also on Wednesday, Dollarama published its fiscal 2025 ESG Report available for download in the Sustainability section of its corporate website.
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