Dollarama 1Q Profit Rises as Consumables Demand Drives Sales

By Adriano Marchese

Dollarama's first-quarter profit climbed as demand from Canadian shoppers for value in everyday essentials continued to drive sales.

For the three months ended May 4, the Montreal dollar-store retailer on Wednesday posted net income of 273.8 million Canadian dollars ($200.2 million), or C$0.98 a share, up from C$215.8 million, or C$0.77 a share, in the comparable quarter a year earlier.

According to FactSet, analysts were expecting a more modest rise to C$0.83 a share.

Sales rose 8.2% to C$1.52 billion, topping forecasts for a rise to C$1.5 billion.

Comparable-store sales increased by 4.9% thanks to shoppers visiting stores more frequently and buying more each visit--these two metrics were up 3.7% and 1.2%, respectively. Dollarama credits the rise to strong demand for consumables, such as food, beverages and household cleaning supplies, as well as for its seasonal offering.

Store count was another factor driving revenue growth, with the number growing to 1,638 at the end of the quarter from 1,569 a year earlier, the company said.

"We are off to a strong start to fiscal 2026 as we successfully pursue our Canadian growth, with comparable-store sales supported by sustained consumables demand and positive seasonal-offering performance," Chief Executive Neil Rossy said.

Dollarcity, the company's 60.1%-owned Latin American retailer, also continued to see growth and advance its expansion plans, with the first stores in Mexico slated to open imminently, Rossy added.

In Dollarcity's quarter, which ran from January to the end of March, earnings came to C$40.3 million, compared with C$22.1 million for Dollarama's 50.1% share during the same period last year.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

06-11-25 0751ET