Dollarama increased its fiscal 2027 guidance for Canadian operations following stronger-than-expected second-quarter results. The retailer reported sales of C$2.02bn for the period ended 2 August 2026, representing a 17.6% increase compared to the same quarter in the prior year. The sales growth reflected a full quarter of operations in Australia, which had only contributed 13 days of results in the prior year following the acquisition of The Reject Shop Limited.
Canadian comparable store sales advanced 5.4% during the quarter, driven by a 3.7% increase in transaction counts and a 1.7% rise in average transaction value. Management attributed the growth to strong customer demand for consumables and general merchandise. Operating income grew 7% to C$517.3m, while net earnings increased 8.7% to C$349.3m. The company opened 15 net new stores in Canada during the period, bringing its total Canadian footprint to 1,734 locations as of 2 August 2026, compared with 1,665 a year earlier.
Based on this performance, Dollarama raised its Canadian comparable store sales guidance for fiscal 2027 to 4%-4.5%, up from the previous range of 3%-4%. The company also increased its net new Canadian store opening guidance to 65-75, from the prior guidance of 60-70. In Australia, the retailer added four net new stores and renovated 25 existing locations, bringing the estate to 414 stores.
The company’s Latin American division, Dollarcity, contributed C$49.9m in net earnings during the quarter while opening 29 net new stores, bringing its total network to 781 locations across five countries. Dollarama indicated it continues to expect the Australian business to generate a net loss in fiscal 2027 as it pursues transformation initiatives and targeted investments in that market.
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