Same-store sales rose 5.6% for the period ended May 3, fueled by a 3.5% increase in transaction volume. This demand surge pushed total quarterly sales to 1.85 billion Canadian dollars, comfortably beating analyst projections. While inflationary pressures on supply chains squeezed gross margins slightly to 43.9%, the company’s bottom line swelled to 302.3 million Canadian dollars, or 1.11 per share.
In section Market Quotes
Dollarama Profit Climbs as Inflation Shifts Consumer Habits
Canada’s discount retail landscape is shifting as households prioritize pantry staples and household goods to combat sustained cost-of-living pressures. Dollarama reported increased foot traffic and higher average basket sizes in the first quarter, signaling that even as borrowing costs remain elevated, the hunt for value continues to drive store performance.
Expansion remains a core pillar of the company’s strategy. Beyond opening 28 net new locations domestically, Dollarama is testing its high-turnover model in international markets. Its recent acquisition of Australia’s The Reject Shop contributed 192.8 million in sales, with long-term plans to rebrand the 410-store network. Simultaneously, its Latin American venture, Dollarcity, continues to gain momentum, contributing 51.2 million to net earnings through operations in Colombia, El Salvador, Guatemala, and Peru.
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