Q1 2027 Dollarama Inc Earnings Call Transcript
Key Points
- Dollarama Inc (DLMAF) reported a strong 5.6% same-store sales increase in Q1, driven by both traffic and basket growth.
- The company opened 28 net new stores in Canada, bringing the total to 1,719, and remains on track to meet its fiscal 2027 target of 60 to 70 new stores.
- Dollar City, the Latin American subsidiary, showed continued profitable growth with 20 new stores opened, totaling 741 locations.
- The construction of a new logistics hub in Western Canada is on schedule and within budget, expected to be operational by the end of 2027.
- Dollarama Inc (DLMAF) achieved a 21.4% increase in sales to nearly $1.9 billion, with EBITDA rising 17.4% to $583 million, reflecting strong financial performance.
- Uncertainty in the global economy, driven by geopolitical developments, is causing inflationary pressures and impacting supply chains.
- The company anticipates increased supply chain-related pressures in subsequent quarters, which could affect gross margins.
- In Australia, the transition to Dollarama-sourced products is expected to weigh on sales in fiscal 2027, particularly in Q2 and Q3.
- The Mexico expansion remains in investment mode, with a $4.3 million loss reported in Q1 related to ramp-up costs.
- Inflation in China, particularly in plastics, is causing pricing pressures, leading to the temporary removal of some high-cost items.
Good morning and welcome to Dollarama's first quarter fiscal 2027 results conference call. On today's call are Neil Rossi, President and CEO, and Patrick Boyd, 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 and future plans, expectations.
Intentions, results, or other future events or developments.
Forward-looking statements are based on information currently available to management on 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 June 11, 2026. 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, future events,
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