Dollarama lifts its FY27 outlook for Canadian store growth and sales after posting an 8.7% rise in net earnings to C$349.3 million during the second quarter.
Dollarama raised its FY27 comparable store sales and net new store opening guidance after reporting higher Q2 sales and earnings.
Dollarcity contributed strong net earnings from its Latin American operations and continued expanding its store network.
The Reject Shop's full-quarter contribution boosted Dollarama's sales, but Dollarama continues to expect a net loss from the Australian business in FY27.
Dollarama reported a strong second quarter with sales reaching C$2.02 billion, a 17.6% increase year-over-year. Driven by robust demand for consumables and expansion in Canada and Latin America, the retailer raised its FY27 guidance for comparable store sales to 4%-4.5% and increased its target for net new Canadian store openings to 65-75 locations.
The company raised its guidance due to strong second-quarter performance, characterized by a 5.4% increase in Canadian comparable store sales and consistent demand for consumables and general merchandise.
Dollarama is currently integrating its Australian business, which includes 414 stores. While the business contributed to overall sales growth, the company expects it to record a net loss in FY27 as it continues to invest in store renovations and layout transformations.