Dollarama Reports Strong Q2 Earnings and Raises Guidance Amid Expansion
Dollarama reported strong second-quarter results, with sales rising 17.6% year over year to more than C$2 billion and net earnings reaching C$349.3 million. Diluted EPS increased by 11.2% to C$1.29. The company raised its fiscal 2027 Canadian same-store sales outlook from 3%-4% to 4%-4.5%, driven by strong first-half performance and improved customer traffic. Dollarama continued expanding internationally, with Dollarcity reaching 760 stores in Central and South America and Mexico expansion progressing despite expected losses. In Australia, the company advanced its renovations and merchandising transformation efforts. The firm also increased its Canadian store-opening target for fiscal 2027 to 65-75 net new locations from 60-70 previously. Despite rising oil prices, Dollarama maintained steady gross margins at 45.7% of sales and reaffirmed its full-year margin forecast between 45.0%-45.5%. The company remains cautious about consumer sentiment and trade developments but is optimistic due to strong demand for consumables and general merchandise.
