Highlights

  • Dollarama's sales grew 5.7% in 3QFY25, reaching CAD 1,562.6 million
  • Store count increased from 1,541 to 1,601 between October 2023 and 2024
  • Dollarama posted a higher EBITDA margin of 30.9%, outperforming the industry median
  • The company targets expanding its store network to 2,200 by 2034

Dollarama Inc. (TSX:DOL) is a Canadian company that operates discount retail stores offering consumer products and items.

In the third quarter of the financial year 2025 (3QFY25), Dollarama's sales rose by 5.7%, reaching CAD 1,562.6 million, compared to CAD 1,477.7 million in the same period last year. This growth was fueled by increased store count, from 1,541 stores in October 2023 to 1,601 stores in October 2024, along with higher comparable store sales.

Further, during the reported period, total revenue increased by 5.8% to CAD 1,562.6 million, driven by growth in the number of stores. Operating income rose by 5.4%, reaching CAD 407.8 million. It was driven by higher revenue and gross profit. Earnings before income taxes grew by 4.5% to CAD 365.8 million, supported by higher operating income, though partially offset by increased interest costs. Net income for the period was CAD 275.8 million, a 5.7% increase from the previous year, despite higher taxes.

During the quarter, the company had a higher EBITDA margin of 30.9% and a higher net margin of 17.6%, compared to the industry median of 13.2% and 6.2%, respectively.

The company saw financial growth in Q3FY25, with improving margins and an increase in cash from operations.

Recent Business Update

On December 4, 2024, the corporation announced an agreement to acquire land in Calgary, Alberta, for CAD 46.7 million, subject to customary closing adjustments.

Company Outlook

Management believes that the corporation can profitably expand its Canadian store network to around 2,200 stores by 2034, while maintaining an average capital payback period of about two years for new stores.

Top 10 Shareholders

Dollarama’s top 10 stakeholders together hold approximately 24.67% of the company's total shares. The largest stakeholders are Caisse de Depot et Placement du Quebec, with a stake of around 4.70%, and The Vanguard Group, Inc., with a stake of about 3.14%.

Stock Information

The stock price of DOL has seen a gain of approximately 0.98% over the past three months and 7.96% over the past six months. Additionally, the stock is currently trading above the average of its 52-week high of CAD 152.97 and its 52-week low of CAD 93.72.

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 as on January 6, 2025. The reference data in this report has been partly sourced from EODHD/Others.