Overview
- Dollarama reported second‑quarter results on Wednesday showing consolidated sales rose 17.6% to about C$2.03 billion and net earnings were C$349.3 million with diluted EPS of C$1.29.
- Canadian same‑store sales accelerated to 5.4%, prompting the company to raise its full‑year Canadian comparable‑sales guidance to 4.0%–4.5% and to increase its Canadian store‑opening target to 65–75 net new locations.
- Consolidated EBITDA margin fell to 32.2% from 34.1% after the quarter included a full three months of Dollarama Australia results following the Reject Shop acquisition.
- Management said Australian operations have lower gross margins and higher selling, general and administrative costs, each dragging roughly 110 basis points from consolidated margins.
- The company continued to deploy capital and expand internationally by repurchasing C$300.4 million of stock, accelerating Dollarcity growth in Latin America and flagging rising fuel, import and financing costs that could pressure margins further.