Q1 2026 Dollarama Inc Earnings Call Transcript
Key Points
- Dollarama Inc (DLMAF) reported a strong start to fiscal 2026 with a 4.9% increase in same-store sales, driven by sustained demand for consumables and positive seasonal performance.
- The company opened 22 net new stores in Q1, bringing the total store count in Canada to 1,638, and plans to open between 70 and 80 net new stores this year.
- Dollarcity, the Latin American subsidiary, opened 12 net new stores, expanding its presence in Colombia, Peru, El Salvador, and Guatemala to 644 stores.
- The company is set to enter the Mexican market with the first Dollarcity stores opening imminently, marking a significant milestone for its international expansion.
- Gross margin improved to 44.2% from 43.2% in the previous year, primarily due to lower logistics costs and reduced inventory shrinkage.
- The macroeconomic environment remains uncertain, with consumer confidence at an all-time low earlier in the year, impacting spending behavior.
- Counter tariffs imposed by Canada on goods imported from the US continue to pose challenges, particularly affecting national brand consumable products.
- The company is facing potential headwinds from continued mix shifts, foreign exchange fluctuations, and shipping rates, which could impact future gross margins.
- Dollarama Inc (DLMAF) anticipates losses from its Mexico market entry, with expectations of continued losses for the next two to three years before breaking even.
- The company did not conduct any share buybacks in Q1 due to market uncertainty and upcoming capital needs, impacting its capital allocation strategy.
Good morning, and welcome to the Dollarama first-quarter fiscal 2026 results conference call. Neil Rossy, President and CEO; and Patrick Bui, CFO, will make a short presentation followed by a question-and-answer period open exclusively to financial analysts.
The press release financial statements and management discussions and analysis are available at dollarama.com and the Investor Relations section as well as on SEDAR+. Before we start, I have been asked by Dollarama to read the following message regarding forward-looking statements.
Dollarama's remarks today may contain forward-looking statements about its current and future plans, expectations, intentions, results, levels of activity, performance, goals, or achievements, or any other future events or developments.
Forward-looking statements are based on information currently available to management and on estimates of assumptions made based on factors that management believes are appropriate and reasonable in the circumstances.
However, there can be no assurance that such estimates and assumptions will prove to be
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