Canadian retail chain Dollarama has disclosed a total sales figure of C$6.41bn ($4.53bn) in fiscal 2025 (FY25) – a 9.3% rise from the C$5.86bn recorded in the previous fiscal year.
The growth is attributable to an expansion in store count and an uptick in sales at existing stores.
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The company’s comparable store sales saw a 4.6% increase, building on the 12.8% surge in the same period of the preceding year.
During the fiscal year ended 2 February 2025, Dollarama’s gross margin reached C$2.89bn, which represents 45.1% of sales – an improvement from C$2.61bn or 44.5% of sales in FY24.
The company’s selling, general and administrative expenses (SG&A) for FY25 climbed by 10.1%, reaching C$930.2m compared to C$844.9m in FY24.
Operating income rose 14.4% to $1.71bn, translating to an operating margin of 26.7%, up from 25.5% in the previous fiscal year.
Dollarama’s earnings before interest, taxes, depreciation and amortisation (EBITDA) for FY25 stood at C$2.12bn with an EBITDA margin of 33.1% of sales.
The company witnessed a 16.9% increase in diluted net earnings per common share, reaching C$4.16 compared to C$3.56 previously.
The fourth quarter of FY25 saw Dollarama’s sales surge by 14.8% to C$1.88bn against C$1.63bn in FY24, supported again by store network growth and comparable store sales increases, including the impact of a 53rd week.
The quarter’s gross margin was reported at 46.8% of sales compared to 46.3% in the same quarter of the previous year, primarily due to reduced logistics costs.
Operating income for the quarter improved by 20.1% to C$558.3m, which corresponds to an operating margin of 29.7%, compared to 28.3%.
Dollarama registered earnings per share of C$1.40 – an increase of 21.7% compared to C$1.15 in FY24.
The company’s store count rose to 1,616 on 2 February 2025 from 1,551 on 28 January 2024.
In the fiscal year 2026, Dollarama anticipates comparable store sales growth ranging between 3% and 4%, with gross margins expected to be between 44.2% and 45.2%.
The company also expects SG&A expenses to rise by 14.2% to 14.7%.
In March 2025, Dollarama agreed to acquire Australian discount retailer The Reject Shop for A$6.68 per ordinary share in cash.
