Dollarama (DOL) Stock Jumps 8% After Blowing Past Q1 Earnings Estimates

TLDR

• Dollarama stock surged around 8% to CA$194.20 after beating Q1 fiscal 2027 estimates across the board
• Net earnings rose 10.4% to C$302.3 million; diluted EPS of C$1.11 beat the C$0.99 consensus
• Total sales hit C$1.85 billion, up 21% year-over-year, topping the C$1.82 billion forecast
• Canada comparable store sales grew 5.6%, well above the 3.7% estimate
• Guidance for fiscal 2027 includes 3–4% Canadian same-store sales growth and 60–70 net new store openings

Dollarama (DOL) stock jumped roughly 8% to CA$194.20 on Thursday after the Montreal-based discount retailer posted first-quarter fiscal 2027 results that beat expectations on every major metric.

Dollarama Inc., DLMAF

Net earnings came in at C$302.3 million, up 10.4% from a year ago. Diluted EPS of C$1.11 cleared the analyst consensus of C$0.99 per share, based on S&P Capital IQ data.

Total sales reached C$1.85 billion for the quarter ended May 3 — a 21% year-over-year increase and above the C$1.82 billion estimate.

EBITDA hit C$582.5 million, up 17% year-over-year and ahead of the C$535.6 million forecast.

Canada comparable store sales grew 5.6% in the quarter, well above the 3.7% estimate analysts had penciled in.

Strong Store Growth Continues

Dollarama opened 28 net new locations in Canada during the quarter, bringing its total Canadian store count to 1,719 as of May 3.

CEO Neil Rossy said the company’s value proposition continues to resonate with customers navigating a tough spending environment.

Sticky inflation and rising gasoline prices — partly tied to the ongoing Middle East conflict — have kept budget-focused shoppers turning to discount retailers.

Dollarama sells most of its products for between C$1 and C$5, a sweet spot that has kept traffic steady.

For fiscal 2027, management maintained its guidance for 3–4% Canadian same-store sales growth and 60–70 net new Canadian store openings.

International Expansion on Track

Dollarama also operates outside Canada. It owns a stake in Dollarcity, its Latin American subsidiary, and last year acquired Australia’s The Reject Shop.

TD Cowen analyst Brian Morrison said progress in Mexico and Australia reinforces that the business model works beyond its home market, calling those regions the next engines of outsized growth.

Wall Street has been broadly constructive on the stock heading into this print. Analyst ratings currently stand at 11 buys, 4 holds, and 1 sell.

Prior to today, RBC Capital had a price target of C$225, CIBC set theirs at C$212, TD Securities at C$235, and Scotiabank at C$220 — all with positive ratings.

In the U.S., major retailers including Walmart, Target, Dollar Tree, and Dollar General have flagged a cautious consumer spending environment in recent weeks, providing context for why Dollarama’s domestic results stood out.

The company’s adjusted EPS for the quarter came in at C$1.05, versus the C$0.99 consensus estimate.

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