Dollarama Inc. reported on Thursday its financial results for the first quarter ended May 3, 2026, indicating sales increased by 21.4% from a year ago, surpassing $1.8 billion.
“We delivered a strong performance in the first quarter of fiscal 2027 as we pursue profitable growth in our core Canadian market, generating strong comparable store sales growth, expanding our store network and progressing our Western Canada logistics hub project. We are also advancing our priorities across our international growth platforms with discipline. In Latin America, Dollarcity had a solid start to the year in its established markets, while continuing to execute the ramp-up in Mexico. In Australia, we also made progress, with an increasing number of stores now operating under the Dollarama layout and our first Dollarama import products beginning to gradually reach shelves,” said Neil Rossy, President and CEO.
“Looking ahead, we expect our strong value proposition to continue resonating with customers, supported by our resilient business model which provides us with flexibility to navigate an uncertain and rapidly evolving macroeconomic environment.”
Fiscal 2027 First Quarter Results Highlights Compared to Fiscal 2026 First Quarter
- Sales increased by 21.4% to $1,846.1 million, compared to $1,521.2 million
- Comparable store sales in Canada increased by 5.6%, compared to 4.9% in the first quarter of the previous year
- EBITDA increased by 17.4% to $582.5 million, representing an EBITDA margin of 31.6%, compared to 32.6%
- Operating income increased by 11.2% to $432.2 million, representing an operating margin of 23.4%, compared to 25.6%
- Net earnings increased by 10.4% to $302.3 million, resulting in a 13.3% increase in diluted net earnings per common share to $1.11, compared to $0.98
- Unrealized gain of $16.4 million relating to the derivative on our equity-accounted investments, positively impacting EBITDA margin by 90 basis points and diluted net earnings per common share by $0.06
- 28 net new stores opened in Canada, compared to 22 in the corresponding period of the previous year; 8 net new stores opened and 13 stores renovated in Australia, all operating under the legacy banner
- 1,962,010 common shares repurchased for cancellation for $339.1 million
Founded in 1992 and headquartered in Montréal, Quebec, Dollarama is a leading Canadian value retailer with international reach with more than 2,800 stores and over 43,000 people serving customers in seven countries on three continents. Dollarama operates more than 1,700 stores in Canada with a presence in all 10 provinces and two territories. In Australia, Dollarama operates the country’s largest discount retail chain, The Reject Shop, with a national network of over 400 stores. Dollarama is also the majority shareholder, through its equity-accounted investments, in Latin American value retailer Dollarcity which has more than 700 stores located in Colombia, El Salvador, Guatemala, Mexico and Peru.
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