Dollarama beats sales-growth estimates, raises forecast as ‘careful’ shoppers seek out discounts

Cautious consumers are continuing to flock to discount stores, boosting sales and profits for Dollarama Inc. DOL-T, and leading the Canadian retailer to hike its sales-growth forecast for this year.

Shoppers are “making careful spending decisions,” which is driving more traffic to Dollarama locations, chief executive officer Neil Rossy noted in a press release on Wednesday.

Household budgets have been strained by a spike in fuel prices tied to the conflict in the Middle East, while the trade war between Canada and the U.S. has created significant economic uncertainty that is weighing on consumer sentiment.

The Montreal-based retailer reported its comparable sales – an important metric that tracks the performance of stores open more than a year, excluding the impact of store openings or closings – grew by 5.4 per cent in the quarter ended Aug. 2. That exceeded analysts’ expectations of 4.2-per-cent sales growth, according to consensus estimates compiled by S&P Capital IQ.

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The results were driven both by an increase in the number of transactions at the stores, and the amount that customers bought during each visit.

Dollarama now expects its comparable sales growth for this fiscal year to be in the range of 4 to 4.5 per cent, up from its last guidance of 3 to 4 per cent.

Net earnings grew to $349.3-million or $1.29 per share on a diluted basis, compared with $321.5-million or $1.16 per diluted share in the quarter last year.

In the second quarter, total sales grew to roughly $2-billion, a 17.6-per-cent jump compared with the same period last year. Those results were driven by an increase in the number of stores in Canada, as well as comparable sales growth.

Total sales also benefited from the inclusion of Australian discount store chain The Reject Shop Ltd., which Dollarama acquired last year. The second quarter of 2025 only recorded 13 days of sales results in Australia following the closing of that deal.

In Canada, Dollarama has slightly accelerated its plans for store expansion, with 65 to 75 new locations set to open this year, compared with previous expectations of 60 to 70. The retailer had 1,734 stores in Canada as of Aug. 2, 69 more locations than it had at the same time last year.