Q2 2026 Dollarama Inc Earnings Call Transcript
Key Points
- Dollarama Inc (DLMAF) reported strong financial results for the second quarter of fiscal 2026, with a 10.3% increase in sales compared to the same period last year.
- The company successfully expanded internationally, opening Dollarcity's first store in Mexico and completing the acquisition of Australia's largest discount retailer.
- Same-store sales in Canada grew by 4.9%, driven by a 3.9% increase in the number of transactions and a 0.9% increase in average transaction size.
- Dollarama Inc (DLMAF) opened 27 net new stores in Canada during Q2, bringing the total number of locations to 1,665, and is on track to meet its target of 70 to 80 net new store openings for the fiscal year.
- The company maintained a strong gross margin of 45.5% in Q2, attributed to lower logistics costs, and expects to end the year at the upper end of its annual gross margin guidance range for the Canadian segment.
- The Australian segment is not expected to contribute to profitability in fiscal 2026 due to integration costs and the ongoing transformation process.
- SG&A expenses increased to 14% of sales in Q2, partly due to higher labor costs in Australia and a one-time transaction cost.
- The Canadian consumer remains fragile and cautious on discretionary spending, which may impact same-store sales in the second half of the year.
- The company faces potential headwinds from higher shipping costs and mix changes, which could pressure margins in the second half of the year.
- Dollarama Inc (DLMAF) is subject to a higher effective tax rate due to its global operations, with an increase of roughly 100 basis points expected going forward.
Good morning, and welcome to Dollarama's second quarter fiscal 2026 results conference call. On today's call are Neil Rossy, President and CEO and Patrick Bui, CFO. They will begin with brief remarks followed by a Q&A with financial analysts.
Before we begin, please note that today's remarks may contain forward-looking statements about Dollarama's current future -- current and future plans, expectations, intentions, results, or any other future events or developments. Forward-looking statements are based on information currently available to management and our reasonable estimates and assumptions made by management. Many factors could cause actual results, future events or developments to differ materially from those expressed or implied. You are cautioned not to place undue reliance on these forward-looking statements.
Forward-looking statements represent management's expectations as at August 27, 2025, except as may be required by law, Dollarama has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information,
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