Dollarama (DOL) Q3 2026 earnings summary

Executive summary

• Achieved strong top-line growth with Q3 sales up 22.2% to $1,909.4 million, driven by robust Canadian and Latin American performance and the addition of 401 Australian stores.

• EPS rose 19.4% to $1.17 and net earnings increased 16.6% to $321.7 million, supported by disciplined pricing and network expansion.

• Expanded to 2,769 retail locations across seven countries, including recent entries into Mexico and Australia.

• Maintained resilience amid economic uncertainty, with value-focused consumers driving healthy store traffic and demand.

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

Financial highlights

• Q3 FY2026 sales reached $1,909M, up 22.2% year-over-year; Canadian same-store sales up 6% (4.1% transaction growth, 1.9% basket size increase).

• EBITDA increased 20.1% to $612 million (margin 32.1%); net earnings up 16.6% to $321.7 million; diluted EPS grew 19.4% to $1.17.

• Gross margin for Canada improved to 45.8%; consolidated gross margin at 44.8%.

• SG&A for Canada at 14.2% of sales; consolidated SG&A at 15.4%, reflecting Australian segment addition.

• LTM EBITDA of $2.4B (33.6% of sales); LTM free cash flow generation of $1.1B.

Outlook and guidance

• Raised full-year Canadian same-store sales guidance to 4.2%-4.7% and gross margin to 45%-45.5%.

• Capital expenditures guidance for Canada lowered to $240.0-$285.0 million.

• Expect material deceleration in Q4 SSS due to calendar shift, not consumer weakness; anticipate ~180 bps headwind.

• Australian segment expected to remain neutral or slightly negative to earnings through fiscal 2027.

• Targeting 2,200 Canadian stores by 2034, 1,050 Dollarcity stores in LATAM by 2031 (excluding Mexico), and 700 stores in Australia by 2034.