Core Insights - Dollarama Inc. reported a significant increase in sales and net earnings for the second quarter of fiscal 2026, driven by its acquisition of The Reject Shop and strong performance in Canada [1][4][13] Financial Performance - Sales for the second quarter of fiscal 2026 increased by 10.3% to $1,723.8 million, compared to $1,563.4 million in the same period of the previous year [4][27] - Net earnings rose by 12.4% to $321.5 million, resulting in a diluted net earnings per share increase of 13.7% to $1.16 [13][27] - EBITDA increased by 12.2% to $588.5 million, with an EBITDA margin of 34.1% compared to 33.5% in the prior year [9][27] Segment Performance - The company now operates in two reportable segments: Canada and Australia, with the Australian segment contributing $25.7 million in sales during the Post-Acquisition Period [2][4] - Comparable store sales in Canada increased by 4.9%, driven by a 3.9% increase in transactions and a 0.9% increase in average transaction size [5][31] Acquisition and Expansion - Dollarama completed the acquisition of The Reject Shop, Australia's largest discount retailer, for A$233.6 million ($208.8 million) [19][20] - The acquisition is part of Dollarama's strategy to expand internationally, with the opening of Dollarcity's first store in Mexico also celebrated during the quarter [3][20] Cost and Margin Analysis - Gross margin for the second quarter was 45.5%, up from 45.2% in the previous year, primarily due to lower logistics costs in Canada [6][29] - SG&A expenses increased by 13.3% to $241.2 million, representing 14.0% of sales, compared to 13.6% in the prior year [7][29] Future Outlook - The company has provided fiscal 2026 guidance for the Canadian segment, expecting net new store openings of 70 to 80 and comparable store sales growth of 3.0% to 4.0% [24][25] - The Australian segment's performance will be evaluated over the coming years, and no separate guidance is provided for it at this time [26]
DOLLARAMA REPORTS FISCAL 2026 SECOND QUARTER RESULTS
Prnewswireยท2025-08-27 11:00