Dollarama Inc. (DOL.TO), a Canadian retail store chain, on Wednesday reported a rise in net profit for the first quarter, helped by improved revenue, driven by strong demand.
For the three-month period to May 4, the company registered a net income of $ 273.756 million, or $0.98 per share, higher than $215.843 million, or $0.77 per share, in the same period last year. Earnings before income taxes stood at $355.172 million as against the prior year's $285.515 million.
Operating income was $388.784 million, up from $322.038 million a year ago.
Sales improved to $1.521 billion from $1.405 billion in 2024. This increase was driven by a growth in the total number of stores over the past 12 months to 1,638 from 1,569 and comparable store sales growth.
The comparable store sales for the first quarter of fiscal 2026 increased by 4.9%, consisting of a 3.7% rise in the number of transactions and a 1.2% increase in average transaction size, over and above comparable store sales growth of 5.6% for the first quarter of fiscal 2025.
The increase in comparable store sales was primarily driven by strong demand for consumables, while also benefitting from a positive performance of seasonal offering.
The Board will pay a quarterly cash dividend of $0.1058 per share on August 8 to shareholders of record as of July 11.
Looking ahead, for the full year, the company has reaffirmed its guidance. Dollarama continues to expect net new store openings of 70 to 80 and comparable store sales of 3% to 4%.
The retailer still projects annual capital expenditure to be in the range of $285 million to $330 million.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.