Dollarama 1Q Profit Climbs on Strong Canadian Demand, Boost from Overseas Operations

By Adriano Marchese

Dollarama logged a higher profit in the first quarter as strong sales momentum in Canada and fresh contributions from its Latin America and newly-acquired Australian operations lifted results.

For the three months ended May 3, the Canadian dollar-store operator on Thursday posted a higher net income of 302.3 million Canadian dollars ($216.8 million), or C$1.11 a share, up from C$273.8 million, or C$0.98 a share, in the comparable quarter a year ago.

According to FactSet, analysts were expecting a slight increase to C$0.99 a share.

Sales rose 21.4% to C$1.85 billion, topping forecasts that expected a rise to C$1.82 billion.

Same-store sales in Canada increased by 5.6%, compared with a growth rate of 4.9% a year earlier. The increase was made up of 3.5% increase in the number of transaction and a 2% increase in transaction size, thanks to strong demand for consumables and general merchandise.

At the same time, the company has been expanding its network of stores, opening 28 net new locations in Canada, compared with 22 a year ago.

In Australia, where it recently acquired The Reject Shop, Dollarama opened eight net new stores and renovated 13 existing ones. The region's 410 stores contributed C$192.8 million to total revenue.

In Latin America, where it operates under the Dollarcity banner, the company reported a C$51.2 million contribution to net earnings for the quarter from its 60.1% stake in CARS, which runs stores in Colombia, El Salvador and Guatemala, and its 80.05% stake in ICM, which operates Dollarcity in Peru.

Dollarama said its fiscal 2027 outlook remains unchanged, with steady growth expected in Canada and continued net loss projected from its Australian business as it continues to invest in the new market.

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

(END) Dow Jones Newswires

June 11, 2026 07:45 ET (11:45 GMT)