Dec. 14, 2025 — Dollarama’s latest results and outlook are sharpening a story many Canadian shoppers have been living for months: as household budgets stay tight, more people are leaning on discount retailers for everyday essentials—pushing the country’s biggest dollar-store chain to new sales highs and sending its stock to a record peak. [1]
The Montreal-based retailer reported a blockbuster third quarter for its fiscal 2026 year, raised key parts of its full-year forecast in Canada, and highlighted expanding international ambitions—from Latin America to a newly acquired Australian chain that’s now entering a multi-year transformation. [2]
Why more Canadians are shopping at Dollarama
Across Canada, value hunting is increasingly shaping how people shop—especially for “consumables,” which can range from pantry goods to personal-care items such as shampoo and soap. University of Guelph economist Mike von Massow says discount-seeking behaviour among price-sensitive consumers is becoming more common, with inflation and broader economic uncertainty prompting shoppers to chase lower prices across multiple categories. [3]
That shift is also changing the “how” of shopping. Von Massow points to more store-hopping—buying some items at a traditional grocery store, then visiting a discounter for specific staples where savings are easier to spot (for example, shelf-stable products). Dollarama, which doesn’t sell fresh produce, has still grown its shelf-stable assortment and benefits from lower waste compared with traditional grocers managing perishable inventory. [4]
The ripple effects show up in the broader grocery landscape, too. Global News noted that Empire Co. Ltd.—the company behind banners including Sobeys, FreshCo and Farm Boy—reported lower profits year over year in its latest quarter even as sales rose, underscoring the pressure on margins and the intensity of value competition. [5]
Dollarama earnings: sales jump 22% as traffic and baskets rise
Dollarama’s third-quarter results (for the period ended Nov. 2, 2025) put hard numbers behind the shift in consumer behaviour:
- Sales rose 22.2% to $1.909 billion (from $1.563 billion a year earlier). [6]
- In Canada, comparable store sales increased 6.0%, powered by a 4.1% increase in transactions and a 1.9% rise in average transaction size. [7]
- Net earnings climbed to $321.7 million, with diluted EPS at $1.17, up from $0.98 a year earlier. [8]
Management attributed the quarter’s momentum largely to sustained demand for consumables and stronger seasonal sales, including a calendar tailwind from “four additional Halloween shopping days” falling within the quarter compared with the previous year. [9]
The quarter also reflected Dollarama’s growing international footprint. The company said sales included $186.1 million from 401 stores in Australia (The Reject Shop, acquired in July), alongside growth in the Canadian store base. [10]
Guidance raised: Dollarama boosts fiscal 2026 outlook in Canada
Alongside the results, Dollarama raised its fiscal 2026 guidance in Canada, pointing to year-to-date performance and continued demand for its value proposition:
- Comparable store sales guidance increased to 4.2%–4.7% (from 3.0%–4.0%). [11]
- Gross margin guidance increased to 45.0%–45.5% of sales (from 44.2%–45.2%). [12]
- Capital expenditures guidance for Canada was lowered to $240 million–$285 million (from $285 million–$330 million). [13]
On its earnings call, Dollarama also cautioned that comparable sales could decelerate in Q4 due to a calendar shift—management discussed an expected headwind of about 180 basis points tied to timing. [14]
Dollarama stock hits a record high
Investors quickly reacted to the stronger outlook. On the week of the earnings release, Dollarama shares touched an intraday high of C$209.96 on Dec. 11, according to historical pricing data, before closing the following day (Dec. 12) at C$202.23. [15]
Reuters also highlighted that Dollarama’s results beat analyst expectations on both sales and profit, with the company lifting its comparable-sales forecast as shoppers gravitated toward cheaper household supplies and groceries. [16]
“We’re always working hard to hold on pricing”: supplier costs and value perception
As consumers lean harder into discount retail, Dollarama is also navigating cost pressures—particularly from domestic suppliers.
On the earnings call, CEO Neil Rossy described import conditions as relatively stable, while noting domestic producers have been “very comfortable asking for price increases” even when Dollarama isn’t seeing input costs rise proportionately, emphasizing the retailer’s focus on staying “ultra-competitive” on relative value. [17]
A Canadian Press report carried by CityNews similarly referenced supplier-driven inflation pressures and included remarks about cost push affecting unit costs—while still framing Dollarama’s overall results as resilient. [18]
The tension is central to Dollarama’s model: shoppers may tolerate modest price movement, but the chain’s appeal depends on keeping a clear price gap versus conventional retail on everyday items. Management repeatedly positioned the company as a “price follower” aiming to limit increases where possible. [19]
Expansion story: Canada scale, Latin America growth, and an Australian overhaul
While Canadian shoppers remain the core engine, Dollarama is increasingly telling a bigger growth story—one that blends domestic store expansion, a fast-growing Latin American affiliate, and a long runway in Australia.
Canada: dense network and long-term store target
In its investor materials, Dollarama reported 1,684 stores in Canada as of the quarter and said roughly 85% of Canadian households are within 10 km of a Dollarama, underscoring how deeply the chain is embedded in everyday convenience shopping. [20]
The same presentation reiterates a long-term objective of 2,200 stores in Canada by 2034, signaling that management still sees meaningful whitespace despite an already broad footprint. [21]
Latin America: Dollarcity milestone and Mexico ramp
Dollarama’s press release highlighted that Dollarcity—its Latin American value retailer investment—posted another strong quarter and opened its 700th store in Latin America, with an additional store in Mexico after quarter-end. [22]
In the investor presentation, Dollarama also points to a long-term target of 1,050 Dollarcity stores as the business scales across multiple markets. [23]
Australia: Reject Shop transformation moves from acquisition to execution
The most “new” international development on Dec. 14 came from Australia, where reporting described Dollarama beginning a major, multi-year transformation of The Reject Shop following its acquisition. The plan includes new merchandising, logistics and store-layout changes, with the full overhaul expected to take years. [24]
On Dollarama’s earnings call, Rossy said select Dollarama SKUs are expected to begin appearing on Australian shelves next year, with penetration increasing through fiscal 2027 and fiscal 2028. He also described early store renovations, noting four stores renovated so far and an expectation to ramp renovations and refits as processes are refined. [25]
Dollarama’s investor presentation sets out the ambition behind that effort: a network expansion target of 700 stores in Australia by 2034, building on the 401-store base acquired this year. [26]
Still, management has been clear that Australia is not expected to be an immediate profit driver. Dollarama’s Q3 release said the company doesn’t expect the Australian segment to have a positive impact on overall profitability in the near term, including fiscal 2027. [27]
What this means for shoppers and the retail market in 2026
For Canadian households, Dollarama’s numbers reinforce a broader reality: value retail isn’t just a recession-era tactic—it’s becoming a default behaviour in an uncertain economy.
For retailers, the message is just as pointed. When a discounter posts a traffic-driven comparable-sales gain and raises its outlook, competitors often respond by emphasizing their own discount banners, deep promotions, or expanded private-label offerings. Global News highlighted this dynamic, noting that major grocery players are increasingly prioritizing discount formats as consumers hunt for deals. [28]
And for investors, Dollarama is being valued not only on near-term earnings momentum, but on a multi-engine growth thesis: a mature yet still expanding Canadian base, an accelerating Latin American platform, and a long-dated Australian turnaround story—one that could eventually export Dollarama’s model to another large consumer market. [29]
What to watch next
Heading into 2026, several near-term signposts will help determine whether Dollarama’s record run can continue:
- Q4 performance and guidance follow-through, especially as calendar effects fade and seasonal demand normalizes. [30]
- Supplier cost dynamics, particularly if domestic manufacturers keep pushing price increases and retailers resist passing them along. [31]
- Execution in Australia, where the transformation plan is now moving into the operational grind of merchandising resets, store renovations and logistics changes. [32]
For now, the takeaway is straightforward: in a high-pressure cost-of-living environment, Dollarama’s promise of low prices on everyday necessities is translating into real traffic, higher sales, and investor confidence—enough to push the stock to a record high and prompt management to lift its outlook for the year ahead. [33]
References
1. www.reuters.com, 2. www.dollarama.com, 3. globalnews.ca, 4. globalnews.ca, 5. globalnews.ca, 6. www.dollarama.com, 7. www.dollarama.com, 8. www.dollarama.com, 9. www.dollarama.com, 10. www.dollarama.com, 11. www.dollarama.com, 12. www.dollarama.com, 13. www.dollarama.com, 14. uk.investing.com, 15. stockanalysis.com, 16. www.reuters.com, 17. uk.investing.com, 18. ottawa.citynews.ca, 19. uk.investing.com, 20. www.dollarama.com, 21. www.dollarama.com, 22. www.dollarama.com, 23. www.dollarama.com, 24. www.theaustralian.com.au, 25. uk.investing.com, 26. www.dollarama.com, 27. www.dollarama.com, 28. globalnews.ca, 29. www.dollarama.com, 30. uk.investing.com, 31. uk.investing.com, 32. www.theaustralian.com.au, 33. www.reuters.com
