Key Highlights
- Shares of Dollarama rallied approximately 8% to CA$194.20 following first-quarter fiscal 2027 results that exceeded analyst projections
- Quarterly net income increased 10.4% to C$302.3 million; diluted earnings per share of C$1.11 surpassed the C$0.99 analyst estimate
- Revenue climbed to C$1.85 billion, marking a 21% year-over-year increase and beating the C$1.82 billion projection
- Canadian same-store sales advanced 5.6%, significantly outpacing the anticipated 3.7% growth
- Full-year fiscal 2027 outlook projects 3–4% domestic comparable sales growth and 60–70 net new Canadian store additions
Shares of Dollarama (DOL) surged approximately 8% to CA$194.20 on Thursday following the release of first-quarter fiscal 2027 financial results that significantly exceeded Wall Street expectations across all key performance indicators.
The Montreal-headquartered discount retail chain reported quarterly net income of C$302.3 million, representing a 10.4% increase compared to the same period last year. Diluted earnings per share reached C$1.11, substantially beating the S&P Capital IQ analyst consensus estimate of C$0.99 per share.
Quarterly revenue totaled C$1.85 billion for the period ending May 3 — representing a robust 21% year-over-year advance and surpassing the analyst forecast of C$1.82 billion.
EBITDA for the quarter reached C$582.5 million, marking a 17% year-over-year improvement and exceeding the analyst expectation of C$535.6 million.
Comparable store sales in Canada expanded by 5.6% during the quarter, substantially outperforming the 3.7% growth rate that analysts had anticipated.
Accelerated Store Expansion Strategy
Dollarama added 28 net new store locations across Canada throughout the quarter, pushing its total domestic store footprint to 1,719 locations as of May 3.
Chief Executive Officer Neil Rossy emphasized that the company’s value-oriented business model continues to attract consumers who are carefully managing their household budgets amid economic headwinds.
Persistent inflationary pressures combined with elevated fuel costs — partially attributed to geopolitical tensions in the Middle East — have driven price-conscious consumers increasingly toward discount retail options.
The retailer’s strategic pricing structure, with most merchandise priced between C$1 and C$5, has proven effective in maintaining consistent customer traffic and transaction volumes.
Management reaffirmed its full-year fiscal 2027 guidance, projecting Canadian same-store sales growth of 3–4% and the addition of 60–70 net new Canadian locations.
Geographic Diversification Delivers Results
Beyond its Canadian operations, Dollarama has established an international presence through its equity stake in Dollarcity, its Latin American subsidiary, and through last year’s acquisition of The Reject Shop in Australia.
TD Cowen analyst Brian Morrison highlighted that the company’s successful expansion into Mexico and Australia validates the scalability of its business model internationally, identifying these markets as potential drivers of exceptional future growth.
Analyst sentiment toward the stock remains predominantly positive ahead of this quarterly report. Current Wall Street ratings include 11 buy recommendations, 4 hold ratings, and 1 sell rating.
Before Thursday’s trading session, RBC Capital maintained a price target of C$225, CIBC established a C$212 target, TD Securities set a C$235 objective, and Scotiabank targeted C$220 — all accompanied by favorable ratings.
Across the U.S. retail landscape, major chains including Walmart, Target, Dollar Tree, and Dollar General have recently highlighted weakening consumer spending patterns, which makes Dollarama’s strong Canadian performance particularly noteworthy.
The retailer’s adjusted earnings per share for the quarter totaled C$1.05, comfortably exceeding the C$0.99 consensus forecast.
