Dollarama Sales Surge 17.6% as Canadian Shoppers Seek Value

The company’s Canadian segment remains the primary engine of growth, with comparable store sales climbing 5.4% as customers increasingly prioritize consumables and general merchandise amid tighter household budgets. This performance prompted leadership to raise its annual guidance, now projecting 65 to 75 net new store openings in Canada and comparable sales growth between 4.0% and 4.5% for the fiscal year.

International expansion continues to be a focal point, though integration costs weigh on margins. The Australian business, formerly known as The Reject Shop, contributed to a broader revenue base but faced lower margins compared to the Canadian core. Meanwhile, the Latin American joint venture Dollarcity reported a 30% jump in sales, driven by an aggressive store rollout that reached 781 locations by the end of June. To maintain capital flexibility, Dollarama repurchased nearly 1.6 million shares for $300.4 million during the quarter and confirmed a quarterly dividend of $0.12 per share.