Dollarama (TSE:DOL) Announces Earnings Results

Dollarama (TSE:DOL) posted its quarterly earnings data on Tuesday. The company reported C$1.43 EPS for the quarter, FiscalAI reports. Dollarama had a net margin of 18.05% and a return on equity of 94.71%. The company had revenue of C$2.10 billion for the quarter.

Here are the key takeaways from Dollarama’s conference call:

• Met or exceeded guidance: Fiscal 2026 consolidated sales rose 13.1% to CAD 7.3B and EPS grew 13.7% to CAD 4.73, with Canada annual same-store sales of 4.2% (Q4 SSS 1.5% pressured by weather) and 75 net new Canadian stores, returning to a 60–70 store opening cadence for FY27.
• Dollarcity momentum: Dollarcity added 100 net new stores (now >700), Dollarama’s share of Dollarcity earnings rose ~47% to CAD 191.5M and Dollarcity doubled its dividend, but the Mexico rollout is still in ramp-up with 100% losses of CAD 11.7M in FY26 and an expected CAD 10–20M loss in FY27 (100% basis).
• Australia transition will pressure near-term results: FY27 is an investment year—management expects a net loss as it executes a multi‑year (≈4‑year) transformation including merchandise changeover (Dollarama imports starting Q2 FY27), 60–80 store remodels, 15–25 net new stores, AUD 35–45M of integration costs, and significant renovation/new‑store capex that may reduce sales and margins during the transition.
• Shareholder returns remain a priority: Dollarama repurchased >4.4M shares for CAD 834.2M and raised the quarterly dividend 13.4% to CAD 0.12, stating it will continue to allocate the majority of excess cash to buybacks and dividends while funding growth projects.

Dollarama Price Performance

Shares of TSE:DOL opened at C$172.01 on Thursday. Dollarama has a 52 week low of C$147.00 and a 52 week high of C$209.96. The company has a 50-day moving average price of C$192.00 and a 200 day moving average price of C$191.97. The company has a market cap of C$47.06 billion, a P/E ratio of 36.60, a PEG ratio of 1.93 and a beta of 0.15. The company has a quick ratio of 0.08, a current ratio of 1.13 and a debt-to-equity ratio of 370.61.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on DOL. BMO Capital Markets lowered their price target on Dollarama from C$222.00 to C$210.00 in a report on Wednesday. Canaccord Genuity Group reduced their price objective on Dollarama from C$207.00 to C$187.00 in a research note on Wednesday. Wells Fargo & Company decreased their price objective on Dollarama from C$195.00 to C$185.00 in a research report on Wednesday. UBS Group lowered their target price on Dollarama from C$210.00 to C$191.00 in a research note on Wednesday. Finally, Scotiabank dropped their target price on Dollarama from C$220.00 to C$200.00 in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, Dollarama currently has a consensus rating of “Moderate Buy” and an average price target of C$202.92.

Dollarama News Roundup

Here are the key news stories impacting Dollarama this week:

• Positive Sentiment: Board increased the dividend by 13%, a cash-return signal that supports income-focused holders and underpins long‑term shareholder value. Article Title
• Positive Sentiment: CIBC upgraded the stock from neutral to outperform and several firms still show double‑digit upside, indicating some analysts view recent weakness as a buying opportunity. Article Title
• Neutral Sentiment: Dollarama reported solid Q4 EPS (C$1.43) and strong margins, but investors focused more on the forward commentary than the headline numbers. Article Title
• Neutral Sentiment: Commentary from management: Dollarama will only pass on supplier price increases “where absolutely necessary,” signaling margin discipline but also limited pricing leverage. Article Title
• Negative Sentiment: Company forecasted slower annual sales and same‑store sales missed expectations — the forward outlook, not the quarter, drove the selloff. Article Title
• Negative Sentiment: Multiple major banks cut price targets (Scotiabank, BMO, UBS, TD, RBC, etc.), creating downward analyst momentum and weighing on sentiment. Article Title
• Negative Sentiment: Market reaction: reports highlight a 7–10% post‑earnings drop as investors punish the weaker guide despite steady profitability — amplifying short‑term downside. Article Title

About Dollarama

Dollarama Inc is a Canada-based company principally engaged in operating discount retail stores. The company provides a broad range of everyday consumer products, general merchandise, and seasonal items, with merchandise at low fixed price points. General merchandise and consumer products jointly account for the majority of the company’s product offerings. The company’s stores are throughout Canada, generally located in convenient locations, such as metropolitan areas, midsize cities, and small towns.