Dollarama (TSE:DOL – Get Free Report) issued its quarterly earnings data on Thursday. The company reported C$1.11 earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of C$1.85 billion for the quarter. Dollarama had a net margin of 18.05% and a return on equity of 94.71%.
Here are the key takeaways from Dollarama’s conference call:
- Canada delivered strong Q1 results, with same-store sales up 5.6%, supported by both traffic and basket growth as consumers continued to prioritize value. Dollarama also opened 28 net new stores in Canada and remains on track for its full-year target of 60 to 70 openings.
- Consolidated earnings grew in the quarter, with sales up 21.4% to nearly CAD 1.9 billion, EBITDA up 17.4% to CAD 583 million, and diluted EPS up 13.3% to CAD 1.11. Results also benefited from an unrealized gain on the Dollarcity call option, which management noted was an accounting item rather than an operating one.
- Management kept guidance unchanged for Canada despite solid Q1 performance, citing cautious views on the consumer and supply chain costs. Full-year guidance remains 3% to 4% same-store sales growth and 45% to 45.5% gross margin.
- Dollarcity continued to perform well in Latin America, with net earnings up 27.1% and 20 net new stores opened in the region during the quarter. Mexico is still in early-stage investment mode, with management saying the ramp-up is proceeding as expected.
- Australia remains in a transition phase, with early store renovations and the rollout of Dollarama-sourced merchandise underway. Management expects the conversion to be gradual, with sales and margins pressured during fiscal 2027 as the new assortment and store format expand.
Dollarama Stock Up 9.0%
TSE:DOL opened at C$195.76 on Friday. The firm’s 50-day moving average price is C$174.77 and its 200-day moving average price is C$187.83. The company has a market capitalization of C$53.29 billion, a PE ratio of 41.39, a P/E/G ratio of 1.93 and a beta of 0.37. The company has a debt-to-equity ratio of 370.61, a current ratio of 1.13 and a quick ratio of 0.08. Dollarama has a 1-year low of C$166.00 and a 1-year high of C$209.96.
Dollarama Dividend Announcement
Wall Street Analysts Forecast Growth
DOL has been the topic of a number of research analyst reports. Scotiabank reduced their price objective on shares of Dollarama from C$220.00 to C$200.00 in a research report on Wednesday, March 25th. Desjardins reduced their target price on shares of Dollarama from C$218.00 to C$205.00 and set a “buy” rating on the stock in a research report on Wednesday, March 25th. Wells Fargo & Company reduced their target price on shares of Dollarama from C$195.00 to C$185.00 in a research report on Wednesday, March 25th. Canaccord Genuity Group reduced their target price on shares of Dollarama from C$207.00 to C$187.00 in a research report on Wednesday, March 25th. Finally, Canadian Imperial Bank of Commerce raised shares of Dollarama from a “hold” rating to an “outperform” rating and reduced their target price for the stock from C$212.00 to C$202.00 in a research report on Wednesday, March 25th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of C$203.69.
Read Our Latest Research Report on DOL
More Dollarama News
Here are the key news stories impacting Dollarama this week:
- Positive Sentiment: Dollarama beat quarterly estimates, reporting C$1.11 EPS on C$1.85 billion in revenue, with management highlighting steady demand for budget-friendly household essentials. Dollarama tops quarterly estimates on steady demand for low-priced essentials
- Positive Sentiment: Sales surged more than 20% as weaker consumer confidence drove more shoppers to discount retailers like Dollarama, supporting the view that its value-oriented model is benefiting from the macro backdrop. Dollarama sales surge over 20% amid ‘weakening’ consumer confidence
- Positive Sentiment: Market coverage noted Dollarama as a leader in the TSX’s broad-based rally, with investors encouraged by the company’s strong sales and earnings performance. TSX rises to one-week high as Dollarama leads broad-based gains
- Neutral Sentiment: In its earnings call, management said Q1 was “smooth” but flagged potential future cost and supply-chain impacts from the Iran war, which could create uncertainty for margins later on. Dollarama has ‘smooth’ Q1, bracing for impacts of Iran war: CFO
Dollarama Company Profile
Dollarama Inc is a Canada-based company principally engaged in operating discount retail stores. The company provides a broad range of everyday consumer products, general merchandise, and seasonal items, with merchandise at low fixed price points. General merchandise and consumer products jointly account for the majority of the company’s product offerings. The company’s stores are throughout Canada, generally located in convenient locations, such as metropolitan areas, midsize cities, and small towns.
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