Canada's Dollarama beats Q3 revenue estimates, raises 2026 store sales forecast

Dollarama

11/12/2025 12:09

Overview

Canada discount retailer's fiscal Q3 revenue grew 22.2%, beating analyst expectations

Adjusted EPS for fiscal Q3 beat analyst expectations

Company repurchased 2.6 mln shares for C$484.6 mln

Outlook

Dollarama raises fiscal 2026 Canadian comparable store sales guidance to 4.2%-4.7%

Company increases fiscal 2026 Canadian gross margin guidance to 45.0%-45.5%

Dollarama lowers fiscal 2026 Canadian capital expenditures guidance to C$240 mln-C$285 mln

Result Drivers

CANADIAN SALES GROWTH - Comparable store sales in Canada rose 6.0%, driven by higher demand for consumables and seasonal products

AUSTRALIAN CONTRIBUTION - Sales from Australian stores contributed C$186.1 mln to overall revenue growth

LATIN AMERICA EXPANSION - Dollarcity's sales rose 21.1% with store count increasing from 588 to 683

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
C$1.91 bln
C$1.87 bln (10 Analysts)
Q3 EPS
Beat
C$1.17
C$1.10 (12 Analysts)
Q3 Gross Margin
44.80%
Q3 Comparable Store Sales
6.00%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the discount stores peer group is "buy"

Wall Street's median 12-month price target for Dollarama Inc is C$208.00, about 3.8% above its December 10 closing price of C$200.46

The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release: ID:nCNWLzk48a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)