Dollarama posted second-quarter sales of $2.03 billion for the 13-week period ended August 2, 2026, a 17.6% jump over the $1.72 billion recorded in the same period a year ago. Canadian comparable store sales rose 5.4% — consisting of a 3.7% increase in transaction count and a 1.7% lift in average basket size — outpacing the 4.9% comp growth the chain achieved in the prior-year quarter. Demand for consumables and general merchandise drove the top-line outperformance.

Canada by the Numbers

The Canadian segment operated 1,734 stores as of August 2, 2026, up from 1,665 a year earlier, with 15 net new locations added during the quarter. Canadian gross margin held essentially flat at 45.7% of sales versus 45.6% in the year-ago period, a sign that domestic scale efficiencies offset broader cost pressures. Canadian SG&A as a percentage of sales was unchanged at 13.8%, and Canadian EBITDA margin expanded to 34.9% from 34.5% a year ago. Net earnings for the consolidated company rose 8.7% to $349.3 million, with diluted earnings per share of $1.29, up 11.2% year over year — aided partly by share buybacks that reduced the weighted-average diluted share count.

On the strength of first-half results, Dollarama raised its full-year Canadian guidance. The comparable store sales target moves to 4.0%–4.5%, up from the original 3.0%–4.0% range set in March. The net new store opening target increases to 65–75 units from 60–70. Gross margin and SG&A guidance bands remain unchanged at 45.0%–45.5% and 14.1%–14.6% of sales, respectively, as does the capital expenditure range of $420 million to $470 million.

Australia Drag, Dollarcity Upside

The consolidated margin profile narrowed compared to the prior year largely because of Dollarama Australia, formerly The Reject Shop. The quarter included a full 13 weeks of Australian results versus only 13 days in the year-ago period following the July 2025 acquisition. Australia's gross margin of 32.4% and SG&A rate of 28.1% are well below the Canadian segment's economics, creating a roughly 110-basis-point drag on both consolidated gross margin and SG&A ratios. The Australian segment reported a net loss of $13.8 million for the quarter. As of August 2, 2026, Dollarama had renovated 60 Australian locations to its store layout and fixtures, with 414 total stores in that market. The company continues to expect a full-year net loss in Australia as it funds the transformation.

Offsetting that drag, Dollarcity — Dollarama's equity-accounted Latin American value retail venture — delivered a 39.7% year-over-year increase in its Central American earnings contribution, with Dollarama's 60.1% share of Dollarcity's Central American operation amounting to $55.6 million for the period. Dollarcity grew its store count to 781 locations across Colombia, Guatemala, Peru, El Salvador, and Mexico as of June 30, 2026, up from 658 a year earlier, fueled by 29 net new openings in its second quarter alone. The Mexico operation, still in early expansion, recorded a net loss of $5.7 million at Dollarama's 80.05% share. Subsequent to quarter end, Dollarcity's Central American board approved a US$125.0 million dividend; Dollarama's share of US$75.1 million ($103.8 million) was received in Q3 fiscal 2027, a portion of which funded a US$38.0 million Mexico capital call.

The value retail channel broadly continues to benefit from consumers trading down or consolidating discretionary purchases at fixed low price points — a dynamic that convenience and fuel retailers tracking basket-size trends in adjacent general merchandise categories will recognize. Dollarama's transaction-count growth of 3.7% in Canada signals that shoppers are visiting more often, not just spending more per trip, a footprint pattern with implications for multi-format retail operators watching which store formats are absorbing everyday consumables spend.

During the quarter, Dollarama repurchased 1,596,016 common shares for $300.4 million at a weighted average price of $188.23 per share. The board also declared a quarterly cash dividend of $0.12 per common share, payable November 6, 2026. President and CEO Neil Rossy noted that households making careful spending decisions continued to rely on the chain for dependable value, and that the Australian transformation remains on track across assortment, store layout, and customer experience dimensions.

Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.