Dollarama (DOL) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 sales grew 5.7% year-over-year to $1,563M, with comparable store sales up 3.3% and diluted EPS rising 6.5% to $0.98.

• Dollarama expanded its store network to 1,601 in Canada and 588 Dollarcity stores in Latin America, with Dollarcity preparing for entry into Mexico in 2026.

• Dollarama increased its equity interest in Dollarcity to 60.1% and set new long-term store targets for both Dollarama (2,200 by 2034) and Dollarcity (1,050 by 2031, excluding Mexico).

• The company remains the leading value retailer in Canada, with a multi-price point model and disciplined, capital-efficient growth strategy.

• Board approved a quarterly dividend of $0.092 per share and continued share repurchases, with 1.4 million shares bought back in Q3 for CAD 186.2 million.

Financial highlights

• Q3 FY2025 sales reached $1,563M (+5.7% YoY); comparable store sales grew 3.3%.

• Gross margin was 44.7% (down from 45.4% YoY); EBITDA margin was 32.6% with Q3 EBITDA at $509.7M.

• Net earnings for Q3 were $276M, up 5.6% year-over-year; diluted EPS was $0.98.

• SG&A as a percentage of sales decreased to 14.3% from 14.5% last year.

• Dollarcity contributed $27.1M in net earnings for Q3, up 50% year-over-year.

Outlook and guidance

• Long-term Canadian store target raised to 2,200 by 2034; Dollarcity target increased to 1,050 by 2031 (excluding Mexico), with Mexico entry planned for 2026.

• Full-year same-store sales growth expected around the midpoint of 3.5%-4.5% guidance.

• Gross margin for the year anticipated in the top half of the 44%-45% range.

• SG&A as a percentage of sales projected at the lower end of the 14.5%-15% range.

• New logistics hub in Calgary region with $46.7M land acquisition and $450M capex over three years; next quarter to provide more visibility on capital spend pace.