Dollarama (DOL) investor relations material

Executive summary

• Achieved Q1 sales growth of 21.4% to $1.85 billion, driven by Canadian and international expansion, including strong comparable sales and contributions from Australia and Latin America.

• Same-store sales in Canada rose 5.6%, supported by both traffic and basket growth.

• Expanded to 2,881 retail locations globally, including 1,719 in Canada, 752 in Latin America, and 410 in Australia.

• Opened 28 net new stores in Canada, 20 in Latin America, and 8 in Australia; 13 Australian stores renovated.

• Strong brand recognition, ranked #1 most reputable brand in Canada and #4 nationally in 2026.

Financial highlights

• EBITDA increased 17.4% to $583 million (31.6% margin), including a $16.4 million unrealized gain from derivatives.

• Net earnings reached $302 million, up 10.4% year-over-year; diluted EPS up 13.3% to $1.11.

• Gross margin was 43.9% for Q1, with Canadian gross margin at 45% (up from 44.2% year-over-year).

• SG&A as a percentage of sales was 16.5% for Q1, with Canada at 15.1% (down from 15.3%).

• Dollarcity contributed $51.2 million in equity pick-up, up 27.1% year-over-year.

Outlook and guidance

• Maintains full-year same-store sales growth guidance at 3%-4% for Canada, with 60–70 net new stores planned.

• Gross margin guidance for Canada unchanged at 45%-45.5%; SG&A guidance at 14.1%-14.6% of sales.

• Targeting 2,200 stores in Canada by 2034, 1,050 Dollarcity stores in Latin America by 2031, and 700 stores in Australia by 2034.

• Australian segment expected to post a net loss in fiscal 2027 due to transformation and investments.

• Expects supply chain pressures to increase in later quarters but believes impacts can be partially mitigated.