Dollarama Inc. (DOL.TO, DLMAF), a Canadian retail store chain, reported Thursday higher earnings and sales in its third quarter with growth in comparable store sales. Further, the company lifted fiscal 2026 outlook for Canadian segment.
In the third quarter, net earnings increased 16.6 percent to $321.72 million from last year's $275.81 million. Net earnings per share went up 19.4 percent to $1.17 from $0.98 a year ago.
Operating income climbed 18.1 percent year-over-year to $481.2 million, while operating margin dropped to 25.2 percent from 26.1 percent last year.
EBITDA increased 20.1 percent to $612.0 million, while EBITDA margin of 32.1 percent declined from 32.6 percent in the prior year.
EBITDA for the latest quarter included a contribution of $18.0 million from the Australian segment, which negatively impacted EBITDA margin by 240 basis points.
Sales increased 22.2 percent to $1.91 billion from $1.56 billion a year ago. Sales in Canada was $1.72 billion. The company recorded $186.10 million in sales from 401 stores in Australia, following the completion of its acquisition of The Reject Shop Ltd. on July 21, 2025.
In Canada, Comparable store sales increased 6 percent, compared to 3.3 percent in the previous year
Further, the company announced that its board of directors approved a quarterly cash dividend for holders of common shares of $0.1058 per common share, payable on February 6 to shareholders of record at the close of business on January 9.
Looking ahead for fiscal 2026, the company lifted guidance ranges for Comparable store sales and Gross margin in Canada, citing year-to-date performance and anticipated continued positive customer response.
For the year, the company now expects comparable store sales to be 4.2 percent to 4.7 percent, compared to previously expected 3.0 percent to 4.0 percent.
Gross margin is now expected to be 45.0 to 45.5 percent, compared to previous estimate of 44.2 percent to 45.2 percent.
Net new store openings are still expected to be 70 to 80 stores.
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