Discount retailer Dollarama's Q1 sales rise more than expected on Canada strength

Dollarama

11/06/2026 12:11

Overview
Canada discount retailer's fiscal Q1 sales rose 21%, beating analyst expectations
Diluted EPS for fiscal Q1 beat analyst expectations, rising 13% yr/yr
Company repurchased 1.96 mln shares for C$339.1 mln during the quarter

Outlook
Dollarama maintains fiscal 2027 Canadian segment guidance, including 3.0%-4.0% comparable store sales growth
Company expects a net loss for the Australian segment in fiscal 2027
Dollarama expects its value proposition to continue resonating with customers amid an uncertain macroeconomic environment

Result Drivers
STORE NETWORK EXPANSION - Sales growth driven by increased number of stores in Canada and contribution from Australia segment
STRONG CANADA SAME-STORE SALES - Comparable store sales in Canada rose 5.6%, driven by higher transactions and average transaction size, with strong demand for consumables and general merchandise
DOLLARCITY CONTRIBUTION - Share of net earnings from Dollarcity rose, as the Latin American joint venture posted 30.4% sales growth and stable expenses, partly offset by lower margins from Mexico expansion

Company press release: ID:nCNWgCYLBa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
C$1.85 bln
C$1.82 bln (12 Analysts)
Q1 EPS
Beat
C$1.11
C$0.99 (11 Analysts)
Q1 Gross Margin
 
43.9%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "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$202.00, about 12.5% above its June 10 closing price of C$179.57
The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 38 three months ago

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.)