Dollarama Raises Full-Year Sales Forecasts as 2Q Profit, Revenue Rise

By Adriano Marchese

Dollarama raised its full-year sales outlook after second-quarter profit and revenue rose, driven by strong traffic at its Canadian locations and international expansion.

The Canadian dollar-store operator on Wednesday updated its guidance for the full year as Canadians continue to lean heavily on its value-oriented product offerings amid tighter household budgets. In this light, the company now expects comparable store sales to rise between 4% and 4.5%, up from a previous range of between 3% and 4%.

Dollarama also expects to open new stores, increasing its targets to between 65 and 75 new stores, up five on both ends of the range.

In its second quarter ended Aug. 2, the company posted a net income of 349.3 million Canadian dollars ($250.9 million), or C$1.29 a share, up from C$321.5 million, or C$1.16 a share, in the comparable quarter a year ago.

According to FactSet, analysts were expecting C$1.26 a share.

Earnings before interest, taxes, depreciation and amortization was C$653 million, up from C$588.5 million, and well ahead of analyst forecasts of C$639.8 million.

Sales rose 17.6% to C$2.03 billion from C$1.72 billion, just above the C$2.02 billion that analysts were expecting.

Comparable sales in Canada growth was of 5.4%, which accelerated from the 4.9% growth rate a year earlier.

Dollarama has been tapping into a broader trend of more diligent Canadian consumers, who have been altering their spending habits to adjust to higher costs of living and runaway inflation, particularly in everyday items and food. The company noted that in the second quarter, it saw more shoppers come through its doors and buying more, logging a 3.7% increase in the number of transactions, and a 1.7% increase in average transaction size.

After acquiring The Reject Shop, the company's Australian segment contributed C$184.8 million in revenue.

Meanwhile in Latin America, Dollarama's share of Dollarcity's net earnings came to C$49.9 million, backed by a 30% increase in Dollarcity's sales and expansion to 781 stores across Central and South America, including 21 locations in Mexico.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

September 16, 2026 07:43 ET (11:43 GMT)