Dollarama, the Montreal-based retailer, has reported impressive sales growth and profitability in the third quarter of the 2026 fiscal year, despite experiencing initial costs from its expansion into Australia. The company’s net income rose by 16.6%, reaching $321.7 million, compared to $275.8 million during the same quarter last year.
Dollarama’s Sales Performance
Comparable store sales in Canada increased by 6.0% in the third quarter. This is a notable improvement over the 3.3% rise recorded during the same period last year. Dollarama attributes this increase to a 4.1% growth in the number of transactions and a 1.9% rise in the average transaction amount.
Year-to-Date Financial Results
- Net income for the first nine months of fiscal 2026: $916.978 million
- Net income during the same period last year: $777.591 million
Dollarama’s ongoing expansion plans are expected to support future growth. Analysts at Desjardins have praised the company’s market position, suggesting that Dollarama’s pricing is 30% to 50% lower than competitors like Walmart and Amazon. They believe this competitive edge justifies the company’s high valuation.
Stock Market Performance
On Wednesday, Dollarama’s stock rose by 0.58%, closing at $200.46 on the Toronto Stock Exchange. Since the start of 2025, the stock has increased by $60.26, accounting for a 42.98% gain.
As Dollarama continues to solidify its presence both domestically and internationally, stakeholders are optimistic about the company’s growth trajectory in the coming years.
