Dollarama (TSE:DOL) Issues Earnings Results

Dollarama (TSE:DOL) announced its quarterly earnings data on Thursday. The company reported C$1.11 EPS for the quarter, FiscalAI reports. The firm had revenue of C$1.85 billion during the quarter. Dollarama had a net margin of 17.65% and a return on equity of 95.90%.

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

• Canada delivered strong Q1 results, with same-store sales up 5.6%, supported by both traffic and basket growth as consumers continued to prioritize value. Dollarama also opened 28 net new stores in Canada and remains on track for its full-year target of 60 to 70 openings.
• Consolidated earnings grew in the quarter, with sales up 21.4% to nearly CAD 1.9 billion, EBITDA up 17.4% to CAD 583 million, and diluted EPS up 13.3% to CAD 1.11. Results also benefited from an unrealized gain on the Dollarcity call option, which management noted was an accounting item rather than an operating one.
• Management kept guidance unchanged for Canada despite solid Q1 performance, citing cautious views on the consumer and supply chain costs. Full-year guidance remains 3% to 4% same-store sales growth and 45% to 45.5% gross margin.
• Dollarcity continued to perform well in Latin America, with net earnings up 27.1% and 20 net new stores opened in the region during the quarter. Mexico is still in early-stage investment mode, with management saying the ramp-up is proceeding as expected.
• Australia remains in a transition phase, with early store renovations and the rollout of Dollarama-sourced merchandise underway. Management expects the conversion to be gradual, with sales and margins pressured during fiscal 2027 as the new assortment and store format expand.

Dollarama Price Performance

DOL stock opened at C$190.94 on Friday. The firm has a 50 day moving average of C$175.16 and a 200-day moving average of C$187.85. Dollarama has a 12-month low of C$166.00 and a 12-month high of C$209.96. The company has a current ratio of 1.57, a quick ratio of 0.08 and a debt-to-equity ratio of 234.39. The company has a market cap of C$51.98 billion, a price-to-earnings ratio of 40.37, a PEG ratio of 1.93 and a beta of 0.37.

Dollarama Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 8th. Stockholders of record on Friday, May 8th were given a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Friday, April 17th. Dollarama’s dividend payout ratio (DPR) is presently 8.95%.

Analyst Ratings Changes

A number of brokerages recently commented on DOL. Royal Bank Of Canada set a C$223.00 price objective on shares of Dollarama and gave the company an “outperform” rating in a research report on Thursday, June 4th. Canaccord Genuity Group raised their price objective on shares of Dollarama from C$187.00 to C$204.00 in a research report on Friday. BMO Capital Markets raised their price objective on shares of Dollarama from C$210.00 to C$221.00 in a research report on Friday. Canadian Imperial Bank of Commerce raised their price objective on shares of Dollarama from C$202.00 to C$228.00 in a research report on Friday. Finally, Scotiabank lifted their price target on shares of Dollarama from C$200.00 to C$220.00 in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of C$216.00.

Key Dollarama News

Here are the key news stories impacting Dollarama this week:

• Positive Sentiment: Several analysts raised their price targets on Dollarama after its quarterly results, with TD, BofA, Jefferies, CIBC, Scotiabank, BMO, Desjardins, National Bank Financial, Stifel, and Canaccord all lifting targets to levels above the current share price. The updated targets generally imply meaningful upside and reinforce a bullish view on the company’s earnings momentum. Article Title
• Positive Sentiment: Dollarama’s Q1 2027 results beat expectations, with EPS of C$1.11 on revenue of C$1.85 billion, highlighting steady demand for low-priced essentials and strong sales growth despite a cautious consumer backdrop. Article Title
• Positive Sentiment: Management said the quarter was “smooth” and reiterated resilience in the business, with sales reportedly surging over 20% as shoppers continued trading down to discount essentials. Article Title
• Neutral Sentiment: Broader TSX headlines noted Dollarama was helping lead index gains, suggesting investor interest in the name remains high after earnings, but this is more a reflection of market leadership than a new company-specific catalyst. Article Title

Dollarama Company Profile

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.