Q2 2027 Dollarama Inc. Earnings Call Transcript
Key Points
- Consolidated sales increased 17.6% to over CAD2 billion, driven by network and same-store sales growth in Canada and the addition of Australia.
- Canadian same-store sales rose 5.4%, with traffic up 3.7%, reflecting continued momentum and the strength of Dollarama's value proposition.
- Dollarcity delivered strong performance with 19 net new stores, bringing total to 760 locations, and a 30.3% increase in Dollarama's share of net earnings.
- Mexico expansion is on plan with 10 new stores opened in Q2, reaching 21 locations, and initial customer response is positive.
- Dollarama increased its fiscal 2027 same-store sales guidance to 4%-4.5% and net new store openings to 65-75, supported by strong first-half results.
- Australian transformation is expected to weigh on sales in fiscal 2027, with the impact more pronounced in the second half as the pace of transition accelerates.
- Higher oil prices and supply chain pressures are anticipated to increase costs in the second half, with a lag before flowing through the P&L.
- Mexico operations reported a net loss of CAD5.7 million (Dollarama's 80% share) due to ramp-up costs, and losses are expected to continue.
- Canadian SG&A remained at 13.8% of sales, with limited leverage as certain costs grow faster than inflation, such as funding recycling programs.
- Consumer confidence remains weak amid trade tensions and elevated living costs, which could affect spending and lead to a deceleration in same-store sales in the back half.
Good morning, and welcome to Dollarama's second-quarter fiscal 2027 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 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 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 September 16, 2026. Except as may be required by law, Dollarama has no intention and undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events,
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