Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsRetail & MarketingDollarama reports sales of $1.85 billion in Q1, beating expectationsThe discount retailer saw demand recover after extreme winter weather curtailed store traffic in the fourth quarter You can save this article by registering for free here. Or sign-in if you have an account.Dollarama has opened 81 new stores across Canada over the last year, which included 28 during the first quarter. Photo by Peter J. Thompson/PostmediaA growing Canadian store footprint and sales growth fuelled by consumers’ cost of living concerns helped Dollarama Inc. notch a strong first quarter, the discount retailer’s chief executive said Thursday.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe Montreal-based company reported Thursday that sales climbed 21 per cent year over year to nearly $1.85 billion in the first quarter, which ended May 3.Net earnings grew 10 per cent to just over $302 million, or $1.11 in diluted earnings per share, beating analysts’ forecasts of $0.99 cents per share.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try again“In Canada, our value proposition continued to resonate with consumers as affordability and everyday value remained top of mind in an uncertain economic environment,” Dollarama president and chief executive Neil Rossy said on a call with analysts.Sales in Dollarama’s core Canadian market reached $1.65 billion during the quarter. Dollarama has opened 81 new stores across Canada over the last year, which included 28 during the first quarter.“Front-loading store openings during the fiscal year is always the objective given that the back half historically represents our seasonally busiest sales period,” Rossy said.Dollarama declared a dividend of $0.12 cents per share, unchanged from the previous quarter. The company also repurchased more than 1.9 million shares during the quarter for a total cash consideration of $339 million.Traffic and basket growth helped drive a 5.6 per cent increase in comparable store sales, a key retail industry metric that only tracks locations open for longer than 12 months.Chief financial officer Patrick Bui said the retailer also saw demand recover after extreme winter weather curtailed store traffic in the fourth quarter.Bui said Dollarama’s first quarter wasn’t affected by higher fuel prices due to the war in Iran, though the company expects costs in the second half of the year. The retailer reiterated its margin guidance of 45 per cent to 45.5 per cent for 2027, assuming the conflict ends soon and fuel prices normalize “in short order,” Bui said.“Now, certainly, (if) the conflict and fuel prices increase and drag on for a much longer period … we may need to revise our assumptions,” Bui said. “But if things calm down very quickly, we feel comfortable reaffirming that guidance.”The retailer reported $192.8 million from sales in its 410 locations in Australia, which includes stores that are part of The Reject Shop (TRS) chain that Dollarama acquired last year. Dollarama is both building new stores and converting existing TRS outlets with the goal of reaching 700 stores in Australia by 2034.Rossy said the company is starting to transition merchandise to Dollarama-sourced products, with the first batch reaching shelves after the quarter ended. He said the retailer expects about half of imported merchandise to be changed over by year end.“Although these customer-facing changes remain preliminary, we have seen encouraging signs in terms of customer interest in reception to the new layout and to our imports used as they gradually make their way across Australia,” Rossy said.As it moves forward with its Australian expansion, the company expects the unit to post a net loss in fiscal 2027.Dollarama shares were trading higher on Thursday afternoon after the earnings release and are up around one per cent over the last year. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.