Dollarama (DOL) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 results met or exceeded all financial guidance, with consolidated revenues rising 13.1% to $7.3B and strong same-store sales and EPS growth year-over-year.

• EBITDA reached $2.4B (33.2% margin), net earnings were $1.3B, and diluted EPS was $4.73, all showing double-digit growth.

• International expansion advanced with Dollarcity's entry into Mexico and acquisition of The Reject Shop in Australia, now Dollarama Australia.

• Value proposition resonated with consumers amid economic pressures, driving demand for both general merchandise and consumables.

• Expanded to 2,825 retail locations across seven countries, including 1,691 stores in Canada, 732 Dollarcity stores in LATAM, and 402 stores in Australia.

Financial highlights

• Fiscal 2026 sales rose 13.1% to $7,255.8M; Q4 sales up 11.7% to $2,101.3M despite one less week.

• EBITDA increased 13.5% to $2,408.2M (margin 33.2%); operating income up 13.3% to $1,937.9M.

• Net earnings grew 12.1% to $1,309.4M; diluted EPS up 13.7% to $4.73.

• Gross margin for the year was 45.0%-45.6%; Q4 gross margin at 45.5%-46.6%.

• SG&A as a percentage of sales increased to 15.1% for the year.

Outlook and guidance

• Fiscal 2027 Canadian comparable store sales growth expected between 3%-4%.

• Gross margin guidance for Canada set at 45%-45.5% of sales; SG&A expected at 14.1%-14.6%.

• CapEx in Canada projected at $420-470M, mainly for logistics hub development; Calgary hub to be operational by end of 2027.

• Dollarcity Mexico and Australia expected to post net losses in fiscal 2027 due to ramp-up and transformation costs.

• Long-term targets: 2,200 stores in Canada by 2034, 1,050 Dollarcity stores in LATAM by 2031 (excluding Mexico), and 700 stores in Australia by 2034.