Dollarama (DOL) investor relations material

Executive summary

• Achieved 10.3% year-over-year sales growth in Q2 FY2026 to over $1.7 billion, driven by Canadian store expansion, strong same store sales, and international growth including Dollarcity's first store in Mexico and the acquisition of The Reject Shop in Australia.

• Operates 2,718 retail locations across seven countries, with 1,665 stores in Canada, 658 Dollarcity stores in five Latin American countries, and 395 stores in Australia.

• Canadian core business remains the foundation, with continued growth and execution supporting broader ambitions and a clear strategy to scale Dollarcity in LATAM and accelerate growth in Australia.

• Integration of the Australian acquisition (TRS) is underway, with gradual conversion to the Dollarama model and a long-term target of 700 stores in Australia.

• Strong brand recognition, broad customer appeal, and a capital-efficient, growth-oriented business model underpin performance.

Financial highlights

• Q2 FY2026 sales reached $1,724 million, up 10.3% year-over-year, with 4.9% same store sales growth in Canada and new store openings.

• EBITDA for Q2 FY2026 was $588.5 million (34.1% of sales), up 12.2% year-over-year; net earnings were $321.5 million, up 12.4%; diluted EPS at $1.16, up 13.7%.

• Gross margin improved to 45.5% from 45.2% year-over-year, mainly due to lower logistics costs.

• SG&A rose to 14% of sales (from 13.6%), reflecting higher costs from the Australian segment and a one-time transaction cost.

• Dollarcity contributed $38.3 million in net earnings in Q2, up from $22.7 million year-over-year; LTM Dollarcity net earnings contribution was $163.8 million.

Outlook and guidance

• Full-year same store sales guidance for Canada remains 3–4%, now expected at the upper end; gross margin guidance for Canada maintained at 44.2–45.2%, also expected at the upper end.

• FY2026 guidance for Canadian segment: 70–80 net new stores, comparable store sales growth of 3.0%–4.0%, gross margin 44.2%–45.2%, SG&A 14.2%–14.7%, capex $285–$330 million.

• No bottom line contribution or guidance expected from the Australian segment in FY2026 due to integration costs; no SSS guidance for Australia during transformation.

• Long-term targets: 2,200 Dollarama stores in Canada by 2034, 1,050 Dollarcity stores in LATAM by 2031, and 700 stores in Australia by 2034.