Mining & Metals
Dollarama Q1 Net Earnings, Sales Rise; Shares up 8.8%
Dollarama (DOL.TO) reported higher net earnings and sales in the first quarter, the company said Thursday.Fiscal 2027 first quarter net earnings rose by 10% to C$302.3 million, or $1.11 per share, up from $273.8 million, or $0.98, in the first quarter of fiscal 2026.First quarter sales increased by 21% to $1.85 billion, up from to $1.52 billion in the year-ago quarter. The company said that the increase was driven by growth in the total number of stores in Canada over the past 12 months, from 1,638 on May 4, 2025, to 1,719 on May 3, 2026, in comparable store sales growth in Canada and a $192.8 million sales contribution from 410 stores in Australia.The consensus estimates compiled by FactSet for sales was $1.82 billion."We delivered a strong performance in the first quarter of fiscal 2027 as we pursue profitable growth in our core Canadian market, generating strong comparable store sales growth, expanding our store network and progressing our Western Canada logistics hub project," said chief executive Neil Rossy. "We are also advancing our priorities across our international growth platforms with discipline. In Latin America, Dollarcity had a solid start to the year in its established markets, while continuing to execute the ramp-up in Mexico. In Australia, we also made progress, with an increasing number of stores now operating under the Dollarama layout and our first Dollarama import products beginning to gradually reach shelves."The company said its financial annual guidance ranges for the Canadian segment and its expectations regarding the Australian segment for fiscal 2027 issued on March 24, remain unchanged.Considering its "business transformation initiatives and investments" in Australia, the company said it continues to expect a net loss for the Australian segment in fiscal 2027."Looking ahead, we expect our strong value proposition to continue resonating with customers, supported by our resilient business model which provides us with flexibility to navigate an uncertain and rapidly evolving macroeconomic environment," added Rossy.The company also said its board of directors approved a quarterly cash dividend of $0.12 per share, payable on Aug. 7 to shareholders of record at the close of business on July 10.The company's shares were last seen up $15.88 to $195.40 on the Toronto Stock Exchange.Price: $195.15, Change: $+15.58, Percent Change: +8.68%
$DOL.TO
