DOLLARAMA REPORTS FISCAL 2027 FIRST QUARTER RESULTS

MONTREAL, June 11, 2026 /PRNewswire/ - Dollarama Inc. (TSX: DOL) ("Dollarama" or the "Corporation") today reported its financial results for the first quarter ended May 3, 2026. Refer to "Selected Segmented Financial Information" on page 6 of this press release for additional information regarding the Corporation's Canadian and Australian reportable segments.

Fiscal 2027 First Quarter Results Highlights Compared to Fiscal 2026 First Quarter

• Sales increased by 21.4% to $1,846.1 million, compared to $1,521.2 million
• Comparable store sales⁽¹⁾ in Canada increased by 5.6%, compared to 4.9% in the first quarter of the previous year
• EBITDA⁽¹⁾ increased by 17.4% to $582.5 million, representing an EBITDA margin⁽¹⁾ of 31.6%, compared to 32.6%
• Operating income increased by 11.2% to $432.2 million, representing an operating margin⁽¹⁾ of 23.4%, compared to 25.6%
• Net earnings increased by 10.4% to $302.3 million, resulting in a 13.3% increase in diluted net earnings per common share to $1.11, compared to $0.98
• Unrealized gain of $16.4 million relating to the derivative on our equity-accounted investments, positively impacting EBITDA margin by 90 basis points and diluted net earnings per common share by $0.06
• 28 net new stores opened in Canada, compared to 22 in the corresponding period of the previous year; 8 net new stores opened and 13 stores renovated in Australia, all operating under the legacy banner
• 1,962,010 common shares repurchased for cancellation for $339.1 million

"We delivered a strong performance in the first quarter of fiscal 2027 as we pursue profitable growth in our core Canadian market, generating strong comparable store sales growth, expanding our store network and progressing our Western Canada logistics hub project. We are also advancing our priorities across our international growth platforms with discipline. In Latin America, Dollarcity had a solid start to the year in its established markets, while continuing to execute the ramp-up in Mexico. In Australia, we also made progress, with an increasing number of stores now operating under the Dollarama layout and our first Dollarama import products beginning to gradually reach shelves," said Mr. Neil Rossy, President and CEO.

 "Looking ahead, we expect our strong value proposition to continue resonating with customers, supported by our resilient business model which provides us with flexibility to navigate an uncertain and rapidly evolving macroeconomic environment," concluded Mr. Rossy.

Fiscal 2027 First Quarter Financial Results

Sales for the first quarter of fiscal 2027 increased by 21.4% to $1,846.1 million, compared to $1,521.2 million in the corresponding period of the prior fiscal year. This increase was driven by growth in the total number of stores in Canada over the past 12 months (from 1,638 on May 4, 2025, to 1,719 on May 3, 2026), Comparable store sales growth in Canada and a $192.8 million sales contribution from 410 stores in Australia.

Comparable store sales in Canada for the first quarter of fiscal 2027 increased by 5.6%, consisting of a 3.5% increase in the number of transactions and a 2.0% increase in average transaction size, over and above Comparable store sales growth in Canada of 4.9% for the first quarter of fiscal 2026. Comparable store sales growth was primarily driven by strong demand for consumables and general merchandise.

Gross margin⁽¹⁾ was 43.9% of sales in the first quarter of fiscal 2027, compared to 44.2% of sales in the first quarter of fiscal 2026. The variance was primarily driven by a lower gross margin in Australia, representing a negative 110-basis point impact, partially offset by lower logistics costs and the positive impact of scaling in Canada.

General, administrative and store operating expenses ("SG&A") for the first quarter of fiscal 2027 represented 16.5% of sales, compared to 15.3% of sales for the first quarter of fiscal 2026. This increase is primarily attributable to higher SG&A in Australia, representing a negative 140-basis point impact, partially offset by the absence, compared to the first quarter of fiscal 2026, of transaction costs in Canada related to the acquisition (the "TRS Transaction") of The Reject Shop Limited (now Dollarama Australia Pty Limited, "Dollarama Australia").

EBITDA was $582.5 million, representing an EBITDA margin of 31.6% for the first quarter of fiscal 2027, compared to $496.2 million, or an EBITDA margin of 32.6% in the first quarter of fiscal 2026. EBITDA for the first quarter of fiscal 2027 includes a contribution of $14.8 million from the Australian segment, which negatively impacted EBITDA margin by 270 basis points. EBITDA for the first quarter of fiscal 2027 also includes an unrealized gain of $16.4 million relating to the derivative on equity-accounted investments, compared to an unrealized gain of $10.4 million in the first quarter of fiscal 2026, reflecting the fair value adjustment of the option to purchase (the "Call Option") an additional 9.89% equity interest in Central American Retail Sourcing Inc. ("CARS") and a corresponding proportionate 4.945% equity interest in Inversiones Comerciales Mexicana S.A. ("ICM", and together with CARS and their respective subsidiaries, the "Dollarcity Group" or "Dollarcity"). Excluding the impact of the unrealized gain from the derivative on equity-accounted investments for both periods (respectively $16.4 million and $10.4 million), EBITDA and EBITDA margin would have been $566.1 million and 30.7%, respectively, for the first quarter of fiscal 2027, compared to $485.8 million and 31.9% for the corresponding period of the previous year.

The Corporation's share of net earnings from Dollarcity amounted to $51.2 million for the period from January 1, 2026 to March 31, 2026. This includes a 60.1% share of net earnings from CARS representing $55.5 million, compared to $40.3 million in the corresponding period of the previous year, reflecting a 37.7% year-over-year increase, and a 80.05% share of net loss from ICM representing $4.3 million. Dollarcity's first quarter performance was mainly driven by a 30.4% increase in sales, primarily attributable to an increase in Comparable store sales and total number of stores over the last twelve months (from 644 on March 31, 2025, to 752 on March 31, 2026), as well as a stable SG&A as a percentage of sales. This was partially offset by a slight decrease in gross margin related to expansion activities in Mexico. The Corporation's investment in Dollarcity is accounted for as a joint arrangement using the equity method. Refer to the section entitled "Dollarcity" of management's discussion and analysis for the first quarter of fiscal 2027.

Net financing costs increased by $5.8 million, from $44.0 million for the first quarter of fiscal 2026 to $49.7 million for the first quarter of fiscal 2027. The increase primarily reflects higher average debt levels from the Canadian segment following the issuance of the 3.940% and 4.576% Fixed Rate Notes (as hereinafter defined) during the first quarter of fiscal 2027 and an impact of $4.1 million from the Australian segment.

Net earnings increased by 10.4% to $302.3 million in the first quarter of fiscal 2027, compared to $273.8 million in the first quarter of fiscal 2026, resulting in an increase in diluted net earnings per common share of 13.3%, to $1.11 per diluted common share, in the first quarter of fiscal 2027, including a negative $0.04 impact per diluted common share from the Australian segment. Excluding the impact of the unrealized gain from the derivative on equity-accounted investments ($0.06 per diluted common share), diluted net earnings per common share would have been $1.05 per diluted common share.

Dollarama Australia

During the quarter, the Corporation renovated 13 stores and opened 8 net new stores, bringing the total number of stores in Australia to 410 at the end of the period. Among these, 28 are now configured with Dollarama's in‑store layout and fixtures, including renovated and new stores, but will continue to operate under the legacy banner until the product assortment reflects Dollarama's value proposition.

Dollarcity

Dividend and Mexico Capital Call  

During the quarter, the Corporation used proceeds from its 60.1% share of the dividend previously declared by CARS and received in the first quarter of fiscal 2027, representing US$75.1 million ($102.2 million), to make a third capital contribution of US$38.0 million ($51.7 million) to ICM for expansion plans in Mexico, reflecting the Corporation's 80.05% ownership interest in ICM.

Store Network Growth

During its first quarter ended March 31, 2026, Dollarcity opened 20 net new stores, compared to 12 net new stores in the same period last year. As at March 31, 2026, Dollarcity had a total of 752 stores, with 424 locations in Colombia, 121 in Guatemala, 111 in Peru, 85 in El Salvador, and 11 in Mexico. This compares to 732 stores as at December 31, 2025.

Normal Course Issuer Bid and Dividend

During the first quarter of fiscal 2027, 1,962,010 common shares were repurchased for cancellation under the Corporation's 2025-2026 normal course issuer bid, for a total cash consideration of $339.1 million, excluding the tax on share repurchases, representing a weighted average price of $172.83 per share.

On June 11, 2026, the Corporation announced that its board of directors approved a quarterly cash dividend for holders of common shares of $0.1200 per common share. This dividend is payable on August 7, 2026 to shareholders of record at the close of business on July 10, 2026. The dividend is designated as an "eligible dividend" for Canadian tax purposes.

Fiscal 2027 Outlook

Canadian Segment

The Corporation's financial annual guidance ranges for the Canadian segment for fiscal 2027 issued on March 24, 2026 and the assumptions on which these are based remain unchanged:

Australian Segment

The Corporation's expectations for the Australian segment for fiscal 2027 issued on March 24, 2026 and the assumptions on which these are based remain unchanged. Considering its business transformation initiatives and investments in Australia, the Corporation continues to expect a net loss for the Australian segment in fiscal 2027.

The guidance ranges for the Canadian segment and the Corporation's expectations regarding the Australian segment are based on several assumptions, including the following:

• the number of signed offers to lease and store pipeline for fiscal 2027, the absence of delays outside of our control on construction activities and no material increases in occupancy costs in the short- to medium-term
• approximately three months visibility on open orders and product margins
• continued positive customer response to our product offering, value proposition and in-store merchandising
• the active management of product margins, including through pricing strategies and product refresh, and of inventory shrinkage
• the Corporation continuing to account for its investment in Dollarcity as a joint arrangement using the equity method
• the entering into of foreign exchange forward contracts to hedge the majority of forecasted merchandise purchases in USD against fluctuations of CAD against USD
• the continued execution of in-store productivity initiatives and realization of cost savings and benefits aimed at improving operating expenses
• the absence of a significant shift in labour, economic and geopolitical conditions, or material changes in the retail environment and projected census and household income data
• no significant changes in the capital budget for fiscal 2027 for new store openings and maintenance or transformational capital expenditures
• the absence of unfavourable weather, especially in peak seasons around major holidays and celebrations

The guidance ranges for the Canadian segment and other statements included in this "Fiscal 2027 Outlook" section are forward-looking statements within the meaning of applicable securities laws, are subject to a number of risks and uncertainties and should be read in conjunction with the "Forward-Looking Statements" section of this press release.

Selected Consolidated Financial Information

Selected Segmented Financial Information

For the 13-week period ended May 3, 2026, the Corporation entered into inter‑segment transactions between the Canadian and Australian segments for the recharges of certain support functions for the benefit of the Australian segment. The incremental profits resulting from these inter‑segment transactions amounted to $0.2 million and are eliminated within the respective segments.

Non-GAAP and Other Financial Measures

The Corporation prepares its financial information in accordance with GAAP. Management has included non‑GAAP and other financial measures to provide investors with supplemental measures of the Corporation's operating and financial performance. Management believes that those measures are important supplemental metrics of operating and financial performance because they eliminate items that have less bearing on the Corporation's operating and financial performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP measures. Management also believes that securities analysts, investors and other interested parties frequently use non-GAAP and other financial measures in the evaluation of issuers. Management also uses non-GAAP and other financial measures to facilitate operating and financial performance comparisons from period to period, to prepare annual budgets and to assess their ability to meet the Corporation's future debt service, capital expenditure and working capital requirements.

The below-described non-GAAP and other financial measures do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers and should be considered as a supplement to, not a substitute for, or superior to, the comparable measures calculated in accordance with GAAP.

(A) Non-GAAP Financial Measures

EBITDA

EBITDA represents net earnings plus income taxes, net financing costs and depreciation and amortization and includes the Corporation's share of net earnings of its equity-accounted investments. Management believes EBITDA measure represents a supplemental metric to assess the operational profitability of the underlying core operations. The Corporation also calculates EBITDA excluding unrealized gain from derivative on equity-accounted investments, in order to exclude the impact of the Call Option, as it does not reflect ongoing operations of the Corporation and should not, in management's view, be considered in a long-term assessment of the operational profitability of the underlying core operations of the Corporation. A reconciliation of net earnings to EBITDA is included below:

Total debt

Total debt represents the sum of long-term debt (including unamortized debt issue costs, accrued interest and fair value hedge – basis adjustment), short-term borrowings under the U.S. Commercial Paper Program, long‑term financing arrangements and other bank indebtedness, including credit agreement. Management believes Total debt is a measure that is useful to facilitate the understanding of the Corporation's corporate financial position in relation to its financing obligations. A reconciliation of long-term debt to total debt is included below:

Net debt

Net debt represents total debt minus cash and cash equivalents. Management believes Net debt represents a useful additional measure to assess the financial position of the Corporation by showing all of the Corporation's financing obligations, net of cash and cash equivalents. A reconciliation of total debt to net debt is included below:

(B) Non-GAAP Ratios

Adjusted net debt to EBITDA ratio

Adjusted net debt to EBITDA ratio is a ratio calculated using adjusted net debt over consolidated EBITDA for the last twelve months. Management uses this ratio to partially assess the financial condition of the Corporation. An increasing ratio would indicate that the Corporation is utilizing more debt per dollar of EBITDA generated. A calculation of adjusted net debt to EBITDA ratio is included below:

EBITDA margin

EBITDA margin represents EBITDA divided by sales. Management believes that this measure is useful in assessing the performance of ongoing operations and efficiency of operations relative to its sales. The Corporation also calculates EBITDA margin excluding unrealized gain from derivative on equity-accounted investments, in order to exclude the impact of the Call Option, as it does not reflect ongoing operations of the Corporation and should not, in management's view, be considered in a long-term assessment of the operational profitability of the underlying core operations of the Corporation. A reconciliation of EBITDA to EBITDA margin is included below:

(C) Supplementary Financial Measures

Forward-Looking Statements

Certain statements in this press release about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements, including the statements relating to the Corporation's Fiscal 2027 outlook for both the Canadian and the Australian segments, the statements relating to the expansion in Mexico and the statement relating to the store banner in Australia. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements.

Forward-looking statements are based on information currently available to management and on estimates and assumptions made by management regarding, among other things, general economic and geopolitical conditions and the competitive environment within the retail industry in Canada, Latin America and Australia as well as, in the case of the sections "Fiscal 2027 Outlook – Canadian Segment" and the "Fiscal 2027 Outlook – Australian Segment", the statements, estimates and assumptions, as applicable, discussed in those sections, in each case, in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including the following factors which are outlined in the management's discussion and analysis for the first quarter of fiscal 2027 and discussed in greater detail in the "Risks and Uncertainties" section of the Corporation's annual management's discussion and analysis for fiscal 2026 both available on SEDAR+ at www.sedarplus.ca and on the Corporation's website at www.dollarama.com: future increases in operating costs (including increases in statutory minimum wages), future increases in merchandise costs (including as a result of rising raw material costs and tariff disputes), future increases in shipping, transportation and other logistics costs (including as a result of freight costs, fuel price increases and detention costs), increase in the cost or a disruption in the flow of imported goods (including as a result of global supply chain disruptions and the geopolitical instability triggered by the increased tensions between China and the Western countries), inability to sustain assortment and replenishment of merchandise, failure to maintain brand image and reputation, inventory shrinkage, disruption of distribution infrastructure, inability to increase warehouse, distribution centre and logistics hubs capacity in a timely manner, inability to enter into or renew, as applicable, store and warehouse leases on favourable and competitive terms, seasonality, market acceptance of private brands, failure to protect trademarks and other proprietary rights, foreign operations (including international operations in Australia and, through the Corporation's equity-accounted investments in Dollarcity, in El Salvador, Guatemala, Colombia, Peru, Mexico and Panama), foreign exchange rate fluctuations, potential losses associated with using derivative financial instruments, interest rate risk associated with variable rate indebtedness, level of indebtedness and inability to generate sufficient cash to service debt, any exercise by Dollarcity's founding stockholders of their put right, changes in creditworthiness and credit rating and the potential increase in the cost of capital, increases in taxes and changes in applicable tax laws or the interpretation thereof, competition in the retail industry (including from online retailers), general economic conditions, competition from online retailers and growth of e-commerce, departure of senior executives, failure to attract and retain quality employees, disruption in information technology systems, inability to protect systems against cyber attacks, unsuccessful execution of the growth strategy (including failure to identify and develop new growth opportunities in Canada and internationally), the Corporation's inability to successfully integrate Dollarama Australia's business, any failure to realize anticipated benefits from the acquisition of Dollarama Australia, the holding company structure, adverse weather, earthquakes and other natural disasters, geopolitical events and political unrest in foreign countries, pandemic or epidemic outbreaks, unexpected costs associated with current insurance programs, regulatory environment, product liability claims and product recalls, class action lawsuits and other litigation, environmental compliance, climate change, and shareholder activism.

These factors are not intended to represent a complete list of the factors that could affect the Corporation, and its subsidiaries or Dollarcity; however, they should be considered carefully. The purpose of the forward-looking statements is to provide the reader with a description of management's expectations regarding the Corporation's and Dollarcity's financial performance and may not be appropriate for other purposes. Readers should not place undue reliance on forward-looking statements made herein.

Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as at June 11, 2026 and management has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. All of the forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Shareholder Meeting and First Quarter Results Conference Call

Dollarama will hold its annual general meeting of shareholders today, June 11, 2026 at 9:00 a.m. (ET) in person at Hotel Ruby Foo's (7655 Décarie Boulevard, Montreal, Québec). A webcast replay will be available after the meeting in the "Investor Relations – Events" section of Dollarama's website until June 10, 2027.

Dollarama will hold a conference call to discuss its first quarter results today, June 11, 2026 at 11:00 a.m. (ET) followed by a question-and-answer period with financial analysts. Other interested parties may participate in the call on a listen-only basis via live audio webcast accessible through Dollarama's website at www.dollarama.com/en-CA/corp/events-presentations.

Publication of Fiscal 2026 ESG Report

Dollarama today published its fiscal 2026 ESG Report providing an update on the progress made against our fiscal 2026 priorities. Our fiscal 2026 ESG Report and accompanying Sustainability Accounting Standards Board and Task Force on Climate-related Financial Disclosures indexes are in complement to our previous ESG disclosure and related documents, all available in the Sustainability section of www.dollarama.com, and should be read in conjunction with our regulatory filings. 

About Dollarama

Founded in 1992 and headquartered in Montréal, Quebec, Canada, Dollarama (TSX: DOL) is a leading Canadian value retailer with international reach with more than 2,800 conveniently located stores and over 43,000 people serving customers in seven countries on three continents. In every market where it operates, Dollarama aims to provide compelling value at select low fixed price points and convenient access to a wide assortment of affordable everyday and seasonal merchandise that appeals to a broad customer base.

Dollarama operates more than 1,700 stores in Canada with a presence in all ten provinces and two territories. In Australia, Dollarama operates the country's largest discount retail chain, The Reject Shop, with a national network of over 400 stores. Dollarama is also the majority shareholder, through its equity-accounted investments, in Latin American value retailer Dollarcity which has more than 700 stores located in Colombia, El Salvador, Guatemala, Mexico and Peru. For more information, go to www.dollarama.com.

View original content:https://www.prnewswire.com/news-releases/dollarama-reports-fiscal-2027-first-quarter-results-302797419.html

SOURCE Dollarama Inc.