Dollarama Inc. delivered robust financial results for the quarter ended April 30, 2025, significantly surpassing Wall Street expectations and reinforcing its leadership in the value retail sector. The Canadian discount retailer reported net earnings of C$273.8 million, marking a 26.9% increase from the same period last year.
Diluted earnings per share rose to C$0.98, well above analyst forecasts, while revenue climbed 8.2% to C$1.52 billion, also topping estimates.
Comparable store sales—a key retail metric—grew by 4.9% in the quarter, driven by a 3.7% increase in transaction count and a 1.2% rise in average basket size. This performance builds on a strong 5.6% comparable sales growth in the same quarter last year, reflecting sustained consumer demand for Dollarama’s consumables and seasonal offerings.
The company’s gross margin improved to 44.2%, up from 43.2% a year earlier, largely due to lower logistics costs. EBITDA margin also advanced to 32.6%, highlighting operational efficiency and disciplined cost management.
Dollarama’s operational momentum was further supported by an expanding store network. The company opened 22 net new stores during the quarter, bringing its total store count to 1,638 across Canada.
Looking ahead, Dollarama reaffirmed its commitment to growth, maintaining its target of 70-80 net new store openings for the fiscal year and raising its full-year comparable store sales growth forecast to 3.0–4.0%. Gross margin guidance was also increased to a range of 44.2–45.2%.
Strategic expansion plans remain on track, with Dollarama’s proposed acquisition of Australia’s The Reject Shop expected to close by the end of July, pending shareholder approval. Meanwhile, its Latin American affiliate, Dollarcity, is preparing to launch its first stores in Mexico, signaling further international growth.
Investor sentiment responded positively to the earnings report, with Dollarama’s stock surging over 9% in pre-market trading and trading near its 52-week high. The company’s consistent dividend payments—maintained for 15 consecutive years—underscore its commitment to delivering shareholder value.
In summary, Dollarama’s first-quarter results highlight strong sales growth, margin expansion, and a disciplined approach to both domestic and international expansion, positioning the company for continued success in a challenging retail environment.
