Canada's Dollarama Q2 EPS beats estimates on Dollarcity strength

Dollarama

16/09/2026 12:14

Overview
Canada discount retailer's fiscal Q2 sales rose 17.6%
EPS for fiscal Q2 rose 11.2%, beating analyst expectations
Company repurchased 1.6 mln shares for C$300.4 mln during the quarter

Outlook
Dollarama raised fiscal 2027 Canadian comparable store sales growth guidance to 4.0%-4.5%
Company increased Canadian net new store openings guidance to 65-75 for fiscal 2027
Dollarama expects a net loss for the Australian segment in fiscal 2027

Result Drivers
AUSTRALIA IMPACT - Full quarter of Australian operations contributed to sales growth but lowered overall gross margin and increased operating expenses
CANADA STORE GROWTH - Expansion of store network and comparable store sales growth in Canada drove revenue
DOLLARCITY CONTRIBUTION - Higher net earnings from Dollarcity joint venture supported overall profitability

Company press release: ID:nPn2vKJSxa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
Beat
C$1.29
C$1.25 (8 Analysts)
Q2 Gross Margin
 
44.50%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "hold" and 1 "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$215.00, about 29.9% above its September 15 closing price of C$165.50
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 33 three months ago

Reuters Recommended Reads
Sept 16 - Dollarama raises annual Canadian sales forecast
Sept 15 - Canadian home sales fall in August as economic uncertainty grows
Sept 13 - Canadian boycott of US products pushes grocers to adapt, explore new supply sources

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)