Dollarama (DOL) Q2 2027 earnings summary

Executive summary

• Delivered strong Q2 and first half results, with consolidated Q2 sales up 17.6% to $2,027M, driven by robust value proposition, disciplined execution, and expansion across Canada, Latin America, Mexico, and Australia.

• Achieved $7.9B in consolidated revenues for the last four quarters ended August 2, 2026, with 2,929 retail locations globally, including 1,734 in Canada, 781 Dollarcity stores in LATAM, and 414 in Australia.

• Maintained relevance as a value destination amid cautious consumer spending and economic uncertainty, with strong brand recognition and clear strategy for profitable growth.

• Strong Canadian comparable store sales growth of 5.4% in Q2, supported by higher transactions and average basket size.

• Continued disciplined network growth, with new store openings and renovations in all markets.

Financial highlights

• Q2 FY2027 sales reached $2,027M, up 17.6% year-over-year; EBITDA increased 11% to $653M (32.2% margin); net earnings $349.3M; diluted EPS up 11.2% to $1.29.

• Gross margin was 44.5% for Q2 FY2027 (45.7% in Canada); SG&A as % of sales was 15.1% overall and 13.8% in Canada.

• Last four quarters: $2.6B EBITDA (32.5% of sales), $1,171M free cash flow, $214M net earnings contribution from Dollarcity.

• Adjusted net debt to LTM EBITDA ratio at 2.12x; total debt at $2,996.7M.

• Canadian traffic up 3.7% in Q2, best in last three quarters.

Outlook and guidance

• Canadian comparable store sales guidance raised to 4.0%-4.5% (from 3.0%-4.0%); net new store openings guidance increased to 65–75.

• Long-term targets: 2,200 stores in Canada by 2034, 1,050 Dollarcity stores in LATAM by 2031 (excluding Mexico), 700 stores in Australia by 2034.

• Full-year Canadian gross margin guidance maintained at 45.0–45.5%; SG&A at 14.1–14.6%.

• Australian segment expected to post a net loss for fiscal 2027 as transformation continues; phased deployment of Dollarama value proposition and store renovations ongoing.

• Guidance based on stable economic conditions, continued customer response, and no major disruptions.