Dollarama (DOL) Q2 2026 earnings summary

Executive summary

• Achieved 10.3% year-over-year Q2 sales growth to $1,724M, driven by Canadian store expansion, strong same-store sales, and international growth including the first Dollarcity in Mexico and the acquisition of The Reject Shop in Australia.

• Operates 2,718 retail locations across seven countries, with significant expansion in Canada, Latin America, and Australia.

• Canadian business remains the core growth engine, with healthy same-store sales and continued relevance for value-seeking consumers.

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

Financial highlights

• Q2 FY2026 sales reached $1,724M, up 10.3% year-over-year; Canadian same-store sales up 4.9%.

• Q2 net earnings rose 12.5% to $321.5M; diluted EPS increased 13.7% to $1.16.

• EBITDA for Q2 FY2026 was $588.5M (34.1% of sales), up 12.2% year-over-year.

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

• SG&A increased to 14% of sales, impacted by Australian segment and one-time transaction costs.

Outlook and guidance

• FY2026 Canadian segment guidance: 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–$330M.

• Guidance for Canadian same-store sales and gross margin now expected at the upper end of the range.

• No guidance provided for the Australian segment as integration and optimization are ongoing; no material bottom-line contribution expected this year.

• Long-term target: 2,200 Canadian stores by 2034, 1,050 Dollarcity stores in LATAM by 2031, 700 stores in Australia by 2034.

• Guidance based on stable economic, labor, and retail conditions, and continued positive customer response.