Canadian retailer Dollarama has recorded a 10.3% sales increase to C$1.72bn ($1.25bn) for the second quarter (Q2) of fiscal 2026, compared to C$1.56bn in Q2 2025.
The rise in sales can be attributed to the expansion of the store network from 1,583 outlets on 28 July 2024 to 2,060 by 3 August 2025.
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It also includes the addition of 395 stores in Australia following the acquisition of The Reject Shop (TRS), contributing C$25.7m to Australian segment sales during the post-acquisition period.
The comparable store sales in Canada rose 4.9%, driven by an increase in both transactions and average transaction size.
The gross margin for Q2 2026 was 45.5% of sales, slightly higher than the previous year quarter’s 45.2% of sales.
The company’s general, administrative and store operating expenses (SG&A) for Q2 FY26 increased 13.3% to C$241.2m compared to C$212.9m for Q2 2025.
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By GlobalDataDollarama’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to C$588.5m, with an EBITDA margin of 34.1%.
Net earnings grew 12.4% to C$321.5m, with diluted net earnings per share up 13.7% to C$1.16.
Income taxes rose from C$96.0m in Q2 2025 to C$118.8m in Q2 2026.
Operating income for the quarter improved by 14.3% to C$483.5m, representing an operating margin of 28% compared to 27%.
Dollarama president and CEO Neil Rossy stated: “The second quarter of fiscal 2026 marked a significant milestone in our international expansion, with entries into two new markets. We completed our acquisition of Australia’s largest discount retailer, and we celebrated the opening of Dollarcity’s first store in Mexico.
“Our complementary international platforms strengthen and diversify our long-term growth strategy, with our successful Canadian business serving as the foundation that fuels our broader ambitions. Strong comparable store sales growth in Canada, both in the second quarter and year to date, highlights the strength of our business model, the relevance of our value proposition for Canadian consumers and the team’s impeccable execution.”
In the fiscal year 2026, Dollarama anticipates comparable store sales growth to range between 3% and 4%, with gross margin expected to be between 44.2% and 45.2%.
The company also expects SG&A expenses of between 14.2% and 14.7%.
