By Adriano Marchese
Dollarama's profit jumped in the fiscal second quarter thanks to strong sales in Canada and in Latin America and contribution from its new Australian business.
For the three months ended Aug. 3, the Canadian dollar-store chain on Wednesday posted a higher net income of 321.5 million Canadian dollars ($232.3 million), or C$1.16 a share, compared with the prior year period's C$285.9 million, or C$1.02 a share, in the comparable quarter a year earlier.
According to FactSet, analysts were expecting C$1.16 a share.
Sales rose 10.3% to C$1.72 billion, beating analyst forecasts of a rise to C$1.69 billion, thanks to contributions from new stores, with total store count growing to 2,060 at quarter's end from 1,583 a year earlier. The rise was also boosted by The Reject Shop in Australia, which Dollarama acquired in July and which contributed C$25.7 million in sales in the post-acquisition period, from July 22 to Aug. 3.
Comparable-store sales in Canada rose 4.9%, compared with a growth of 4.7% a year earlier, driven primarily by strong demand for consumables, a category that includes food, household essentials, and personal-care products.
Dollarama also added 27 net new stores in Canada during the quarter, compared with 14 net new stores overall.
From its Latin America region, its stake in Dollarcity contributed came to C$38.3 million for the period from April 1 to June 30, compared with C$22.7 million between April 1,2024 and June 10 2024. The company said it expanded its ownership of the business on June 11 of last year, and that Dollarcity's second-quarter performance was mainly driven by 16% growth in sales.
Chief Executive Neil Rossy said the second quarter marked a milestone in the company's international expansion, with entries into two new markets.
"We completed our acquisition of Australia's largest discount retailer, and we celebrated the opening of Dollarcity's first store in Mexico," said Rossy.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
08-27-25 0809ET
