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Highlights

  • Driven by store expansion, Dollarama’s Q2 2025 revenue rose 7.4% to CAD 1,563.4 million.
  • Operating income increased 15.3% to CAD 422.8 million in Q2 FY25, due to higher revenue.
  • The company aims to set up 60-70 new stores in FY 2025.

Dollarama Inc (TSX:DOL) is a discount retailer based in Canada. It offers a huge variety of everyday items. The bulk of its offerings consist of general merchandise and consumer goods. It has a market cap of CAD 38.87bn.

In Q2 2025, Dollarama reported a total revenue of CAD 1,563.4 million, marking a 7.4% increase from CAD 1,455.9 million in the previous corresponding period (pcp). This growth was primarily driven by an expansion in the number of stores. Operating income reached CAD 422.8 million, up 15.3% from CAD 366.7 million in pcp. The surge in operating income can be ascribed to higher revenue and gross profit levels.

Additionally, earnings before income taxes improved to CAD 381.9 million, reflecting a 15.5% year-over-year increase from CAD 330.6 million. This positive trend was largely due to the higher operating income, though it was slightly offset by increased interest costs. Net income for the period rose to CAD 285.9 million, a 16.4% increase from CAD 245.7 million in Q2 2024, though this was partially impacted by higher tax expenses.

Recent Business Update

Company Outlook

According to the company, its management expects significant growth in new store openings. It plans to open about 60 to 70 new stores in FY 2025. Additionally, it anticipates an increase in gross margin, projected to be between 44% and 45% for the same period.

Top 10 Shareholders

Dollarama's top 10 shareholders own about 24.79% of the total shares. Caisse de Depot et Placement du Quebec has the largest stake at approximately 4.68%. TD Asset Management Inc. follows with around 3.09%.

Price Performance

The stock price of DOL has declined by about 0.62% over the past week. In contrast, it has increased by approximately 7.32% over the last month. Additionally, the stock is currently trading above the average of its 52-week high of CAD 139.76 and its 52-week low of CAD 89.93. As of 07 Oct 2024, the stock’s closing price is CAD 137.67.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 7, 2024. The reference data in this report has been partly sourced from EODHD/Others.