Toronto, June 11, 2026, 11:04 (ET)
- Dollarama shares jumped after the company beat analyst forecasts on both fiscal Q1 sales and adjusted earnings.
- The discount retailer is still calling for Canadian comparable sales growth of 3% to 4% for fiscal 2027.
- The S&P/TSX Composite Index pushed up. Dollarama was among the top gainers in consumer discretionary.
Dollarama Inc. shares rose on Thursday. The Montreal discount chain turned in better-than-expected fiscal Q1 numbers, giving investors more reason to bet on shoppers’ focus on value items as Canadians keep cutting back.
The stock jumped 8.11% to CA$194.13 by 10:45 a.m. ET on the Toronto Stock Exchange, up from its open at CA$185.00 and just shy of its intraday peak of CA$195.29, per Google Finance. Shares stayed under their 52-week high of CA$209.96 but traded well clear of the 52-week low at CA$166.00.
Dollarama’s fiscal 2027 Q1 sales came in at CA$1.846 billion, a 21.4% jump from CA$1.521 billion last year. Net earnings climbed 10.4% to CA$302.3 million. Diluted EPS moved up to CA$1.11 from CA$0.98.
The results came in ahead of forecasts. According to Reuters, LSEG analysts were looking for CA$1.82 billion in sales. Adjusted earnings landed at CA$1.05 per share, topping the CA$0.99 analysts expected.
Dollarama posted a 5.6% gain in comparable store sales in Canada, topping the 4.9% growth from a year ago. The company said higher sales were linked to a 3.5% jump in transactions and a 2.0% rise in average transaction size. Demand for consumables and general merchandise drove most of the gains.
Dollarama CEO Neil Rossy said he thinks the retailer’s “strong value proposition” should keep attracting shoppers as the chain grows in Canada and eyes new markets. Dollarama added 28 net new stores in Canada this quarter, up from 22 the same quarter last year. Newswire
The S&P/TSX Composite Index climbed 0.9% to 34,479.68 points as of 10:37 a.m. ET, Reuters said. Dollarama’s results pushed the consumer discretionary sub-index to the top of the board. The earnings update gave a boost to the wider Canadian market.
Dollarama’s overseas operations got attention after the company reported its Australian business posted CA$192.8 million in sales from 410 stores for the quarter. Dollarcity ended the period with 752 stores in Colombia, Guatemala, Peru, El Salvador and Mexico as of March 31, 2026.
TD Cowen’s Brian Morrison told Reuters progress in both Mexico and Australia backs the case that Dollarama’s model “is portable.” He sees those markets turning into “engines of outsized growth.” Reuters
Dollarama’s push overseas weighed a bit on margins. Gross margin dropped to 43.9% of sales, down from 44.2% last year. The company said gross margin in Australia came in lower, but that was partly balanced by cheaper logistics and scale gains at home in Canada.
Dollarama kept its fiscal 2027 Canadian outlook steady. The company is sticking with plans for 60 to 70 net new stores, 3.0% to 4.0% comparable sales growth, gross margin between 45.0% and 45.5%, and capital spending of CA$420 million to CA$470 million. The board declared a quarterly dividend of CA$0.1200 a share, payable August 7 to holders on record July 10.
