Dollarama lifts guidance as careful spenders drive Q2 sales

MONTREAL — Dollarama reported fiscal 2027 second-quarter sales up 17.6% to $2.03 billion and net earnings up 8.7% to $349.3 million, as CEO Neil Rossy said households making “careful spending decisions” kept counting on the discounter for dependable value.

Canadian comparable-store sales rose 5.4% — 3.7% more transactions and 1.7% larger baskets — over and above 4.9% a year earlier, helped by consumables and general merchandise plus 15 net new Canadian stores (1,734 locations). A full quarter of Australia (The Reject Shop) also boosted the top line versus only 13 days in the prior year. EBITDA climbed 11% to $653.0 million; diluted EPS rose 11.2% to $1.29. Operating margin slipped to 25.5% from 28.0%, largely on Australia’s lower mix.

The company raised Canadian fiscal 2027 guidance to 4.0%–4.5% comps (from 3.0%–4.0%) and 65–75 net new stores (from 60–70). It bought back about 1.6 million shares for $300.4 million in the quarter and declared a $0.12 quarterly dividend. Dollarcity’s LatAm network reached 781 stores; Australia remains in transformation with an expected net loss for the year.

Value retail winning when wallets tighten is the inflation read in plain sight: dollar stores scale when real incomes feel squeezed, turning thrift into same-store growth and guidance upgrades.