Dollarama Inc.

Q2 fiscal 2027 consolidated sales increased 17.6% to more than $2 billion. EBITDA increased 11% to $653 million, with an EBITDA margin of 32.2%. Net earnings were $349.3 million and diluted EPS rose 11.2% to $1.29 from $1.16 last year. In Canada, same-store sales grew 5.4%, traffic increased 3.7%, and gross margin was 45.7% versus 45.6% a year ago. Canadian SG&A was 13.8% of sales. Dollarama raised fiscal 2027 Canadian SSS guidance to 4% to 4.5% and Canadian net new store guidance to 65 to 75; Canadian gross margin guidance remains 45.0% to 45.5% and SG&A guidance remains 14.1% to 14.6%. Management also said Australia’s year-to-date operating loss was about $25 million and that Australia full-year transformation cost and segment earnings expectations remain unchanged.

Neil Rossy framed the quarter as validation of Dollarama’s value proposition and execution, saying customers are still turning to the chain for everyday value despite pressure on household budgets. He highlighted strong Canadian SSS, continued momentum in Latin America, and progress on Mexico and Australia, while stressing a disciplined approach to sourcing, merchandising, and pricing. His tone was confident but cautious: the company sees opportunity, but he repeatedly noted uncertain macro conditions, trade tensions, and the need to protect relative value.

Patrick Bui emphasized the financial strength of the quarter, pointing to $653 million of EBITDA, a 32.2% margin, $349.3 million of net earnings, and diluted EPS of $1.29. He said Canadian gross margin of 45.7% benefited from scaling, while higher oil-related supply chain pressures were manageable in Q2 but expected to be more pronounced in Q3; still, the company kept full-year gross margin guidance at 45.0% to 45.5%. He also noted that Dollarcity contributed CAD 49.9 million of net earnings share, the company repurchased more than 1.5 million shares for $300.4 million, and the board approved a quarterly dividend of 12 cents per share.

Analysts focused on whether the second-half SSS guide implies a slowdown, inflation and fuel cost pressures, discretionary category trends, Canada store-opening pace, and the economics of Australia and Mexico. Management said it remains prudent on the back half because of macro uncertainty, but the Q2 run rate was strong and traffic stayed healthy. On categories, they said consumables and general merchandise remained strong, seasonal was stable to slightly positive, and toys were an outlier on the upside. For Australia, management said losses and integration costs will be more weighted to the second half, while profitability depends on product conversion, store conversion, and logistics/back-office execution; for Mexico, they said the rapid store ramp is proceeding on plan and consumer response is encouraging.