Dollarama (DOL) investor relations material

Executive summary

• Achieved strong top-line growth with Q3 sales up 22.2% to $1,909.4 million, driven by Canadian and Australian expansion, and robust same-store sales in Canada and Latin America.

• EPS rose 19.4% to $1.17, net earnings increased 16.6% to $321.7 million, and EBITDA grew 20.1% to $612 million, supported by network expansion and disciplined pricing.

• Expanded to 2,769 retail locations across seven countries, including recent entries into Mexico and Australia, with Dollarcity reaching 700 stores in Latin America.

• Maintained resilience amid economic uncertainty, with value-focused consumers driving healthy store traffic and demand for consumables and seasonal products.

• Clear strategy to grow Canadian footprint, scale Dollarcity in LATAM, and accelerate growth in Australia.

Financial highlights

• Q3 FY2026 sales reached $1,909M, up 22.2% year-over-year; Canadian same-store sales up 6% (4.1% transaction growth, 1.9% basket size increase).

• EBITDA margin at 32.1% for Q3; LTM EBITDA of $2.4B (33.6% of sales); net earnings for Q3 FY2026 were $322M, up 16.6%; diluted EPS rose 19.4% to $1.17.

• Gross margin for the Canadian segment improved to 45.8%, consolidated gross margin at 44.8%.

• Dollarcity equity contribution rose 56.5% to $42.4 million, with LTM net earnings at $179.1M.

• LTM free cash flow generation of $1.1B.

Outlook and guidance

• Raised full-year Canadian same-store sales guidance to 4.2%-4.7% and gross margin guidance to 45%-45.5%.

• Expects material deceleration in Q4 SSS due to calendar shift, not consumer weakness; historical impact estimated at 180 basis points.

• Targeting 2,200 Canadian stores by 2034, 1,050 Dollarcity stores in LATAM by 2031 (excluding Mexico), and 700 stores in Australia by 2034.

• CapEx guidance for fiscal 2026 lowered to CAD 240-285 million, reflecting timing shifts for logistics hub expenses.

• No positive near-term profitability expected from the Australian segment due to ongoing transformation investments.