Dollarama 4Q Profit Climbs as Bigger Basket Size Offset Weaker Traffic

By Adriano Marchese

Dollarama's fourth-quarter profit rose as shoppers spent more per visit, helping lift sales despite harsh winter weather and softer store traffic.

The dollar-store chain on Tuesday said that for the 13 weeks ended Feb. 1 net income was 392.5 million Canadian dollars ($286 million), or C$1.43 a share, up from C$391 million, or C$1.40 a share, in the prior-year period, which included an extra week in the quarter.

According to FactSet, analysts were expecting C$1.41 a share.

Adjusted earnings before interest, taxes, depreciation and amortization rose C$6.2% to C$711.5 million. Analysts forecasted C$676.8 million.

Sales rose nearly 12% to C$2.1 billion from C$1.88 billion. Analysts expected a rise to C$2.07 billion, driven by demand for seasonal products, which was partially offset by unfavorable weather conditions which kept shoppers home during historically strong sales weeks.

In Canada, comparable store sales, determined on a 13-week basis, increased by 1.5%, compared to 4.9% growth in the fourth quarter of the previous year. Excluding the effects of the calendar shift, growth would have been 3.5%.

The increase in same-store sales was due to a 3.1% increase in how much shoppers spent per visit which outweighed a 1.6% drop in traffic.

From its stake in Dollarcity in Latin America, net earnings were C$70.5 million between Oct. 1 to Dec. 31, compared with C$58 million in the prior-year period.

In the quarter, the company added seven net new stores in Canada, compared with 15 a year earlier, and one new store in Australia under the recently-acquired The Reject Shop banner.

Dollarama outlined its expectations for its Canadian business in fiscal 2027, expecting comparable store sales of 3% to 4%, down from the 4.2% rate in fiscal 2026. Gross margin is expected to be between 45% and 45.5%, compared with 45.6% in fiscal 2026. Capital expenditures are also expected to rise to between C$420 million to C$470 million, up from C$252.6 million.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

March 24, 2026 07:56 ET (11:56 GMT)