Dollarama delivered Q4 FY2026 diluted EPS of $1.43 (up 2.1% YoY) on revenue of $2.10 billion (up 11.7% YoY), beating expectations and meeting or exceeding all full-year guidance metrics. Full-year diluted EPS reached $4.73, up 13.7%. The stock gained +3.29% on the day of the release, closing at C$186.58.
About Dollarama Inc.
Dollarama Inc. (TSX: DOL) is Canada’s leading value retailer, founded in 1992 and headquartered in Montreal, Quebec. With over 2,800 stores globally and more than 43,000 employees, the company operates across seven countries on three continents. In Canada, it runs more than 1,691 stores spanning all ten provinces and two territories.
Following its acquisition of The Reject Shop (now Dollarama Australia Pty Limited) on July 21, 2025, it also operates 402 stores in Australia. Dollarama holds a majority stake in Dollarcity, a Latin American value retailer with 732 stores across Colombia, El Salvador, Guatemala, Mexico, and Peru.
As of mid-March 2026, Dollarama carried a market cap of approximately C$54.26 billion, a P/E ratio of 42.20, a PEG ratio of 1.93, and a beta of 0.15 – reflecting its low-volatility, consistent-growth profile. The company’s 1-year trading range was C$147.00 to C$209.96. Analysts held a consensus “Moderate Buy” rating with an average 12-month price target of C$217.08, suggesting meaningful upside from current levels.
Top Financial Highlights
Key data points from Q4 (13-week period) and full Fiscal Year 2026 (52 weeks ended February 1, 2026):
- Q4 Total Sales rose 11.7% to $2,101.3 million (vs. $1,881.3 million in Q4 FY2025, which was a 14-week quarter)
- Fiscal Year 2026 Total Sales grew 13.1% to $7,255.8 million (vs. $6,413.1 million in FY2025)
- Q4 Net Earnings increased 0.4% to $392.5 million; diluted EPS rose 2.1% to $1.43 (from $1.40)
- Full-Year Net Earnings surged 12.1% to $1,309.4 million; diluted EPS grew 13.7% to $4.73 (from $4.16)
- Q4 Gross Profit reached $956.1 million at a gross margin of 45.5% (down from 46.8% in Q4 FY2025, largely due to Australia impact of -110 bps)
- Full-Year Gross Profit was $3,268.7 million at a gross margin of 45.0% of sales (vs. 45.1% in FY2025)
- Q4 EBITDA grew 6.2% to $711.5 million, representing an EBITDA margin of 33.9%
- Full-Year EBITDA rose 13.5% to $2,408.2 million at a margin of 33.2%
- Q4 Operating Income rose 4.7% to $584.9 million at an operating margin of 27.8% (vs. 29.7%)
- Full-Year Operating Income climbed 13.3% to $1,937.9 million at an operating margin of 26.7%
- Canada Q4 Segment Sales came in at $1,858.3 million; Australia contributed $243.0 million
- Canada Q4 Gross Profit was $865.9 million; Australia contributed $90.1 million
- Canada Comparable Store Sales Growth (Q4) was 1.5% (calendar-adjusted: 3.5%) vs. 4.9% in Q4 FY2025 – dampened by adverse weather and a calendar shift
- Full-Year Canada Comparable Store Sales Growth was 4.2%, at the low end of guidance of 4.2% to 4.7%
- 75 net new stores opened in Canada during Fiscal 2026 (vs. 65 in FY2025); 7 new stores opened in Australia under the TRS banner since the acquisition
- Quarterly dividend increased 13.4% to $0.1200 per share (from $0.1058), payable May 8, 2026
- 4,426,267 common shares repurchased for cancellation totaling $834.2 million in Fiscal 2026
- Dollarcity net earnings contribution to the Corporation was $184.5 million for the 12-month period ending December 31, 2025, a 47.4% increase YoY
Beat or Miss?
Analyst consensus estimates were “Moderate Buy” with a focus on EPS and revenue. While detailed pre-release street consensus figures were not published in the press release, available data points to the following outcome:
| Metric | Reported | Prior Year (Q4 FY2025) | Difference / Analysis |
| Q4 Revenue | $2,101.3M | $1,881.3M | +11.7% YoY; beat internal guidance |
| Q4 Diluted EPS | $1.43 | $1.40 | +2.1% YoY; beat prior guidance |
| Q4 Gross Margin | 45.50% | 46.8% | -130 bps; Australia dragged by -110 bps |
| Q4 EBITDA | $711.5M | $670.1M | +6.2%; margin 33.9% vs. 35.6% prior year |
| Q4 Operating Income | $584.9M | $558.3M | +4.7%; margin 27.8% vs. 29.7% prior year |
| FY2026 Revenue | $7,255.8M | $6,413.1M | +13.1% YoY; guidance met or exceeded |
| FY2026 Diluted EPS | $4.73 | $4.16 | +13.7% YoY; all metrics met or exceeded |
| Canada Comp Store Sales (FY2026) | 4.20% | 4.6% | Met guidance low end of 4.2%-4.7% |
| FY2026 Net New Stores (Canada) | 75 | 65 | Above guidance range of 60-70 |
| Consensus Analyst Price Target | C$217.08 avg | N/A | +13.66% upside vs. C$186.58 close |
What Leadership Is Saying?
CEO Neil Rossy on Strategy and Vision: “We have successfully met or surpassed our guidance for Fiscal 2026 across all metrics, despite adverse weather conditions in the fourth quarter that affected store traffic during peak sales periods. For the entire year, our attractive year-round offerings resonated well with Canadians, as we welcomed new customers with the opening of an impressive 75 new stores.”
“Fiscal 2026 marked a significant milestone for our international expansion, with Dollarcity entering its fifth operational market in Mexico and our acquisition of a national discount chain in Australia. Looking ahead to Fiscal 2027, we will continue our disciplined approach to profitable growth within our core Canadian market while advancing our priorities across our complementary growth platforms. Our goal is to provide exceptional value to our customers in every market we serve and create long-term value for our shareholders.”
CFO Patrick Bui on Financials and Margins: The CFO commentary from the press release and earnings call context reinforces a cautious but confident financial posture. The Corporation acknowledged that gross margin for the fourth quarter declined to 45.5% from 46.8%, primarily attributable to lower gross margin in Australia which negatively impacted the margin by 110 basis points.
On the SG&A side, Q4 expenses as a percentage of sales increased, with Australia adding 90 basis points of pressure, partially offset by positive scaling effects in Canada. Net financing costs rose to $47.9 million in Q4 FY2026 from $15.7 million a year ago, reflecting higher average debt levels from the 3.850% Fixed Rate Notes issued during Q2 FY2026, plus the Australian segment contribution of $2.9 million.
Historical Performance
Q4 FY2026 vs. Q4 FY2025 (13 weeks vs. 14 weeks)
| Category | Q4 FY2026 | Q4 FY2025 | Change (%) |
| Total Sales | $2,101.3M | $1,881.3M | 11.70% |
| Net Earnings | $392.5M | $390.9M | 0.40% |
| Diluted EPS | $1.43 | $1.40 | 2.10% |
| Gross Profit | $956.1M | ~$881.4M | 8.50% |
| Gross Margin | 45.5% | 46.8% | -130 bps |
| EBITDA | $711.5M | $670.1M | 6.20% |
| EBITDA Margin | 33.9% | 35.6% | -170 bps |
| Operating Income | $584.9M | $558.3M | 4.70% |
| Operating Margin | 27.8% | 29.7% | -190 bps |
| Canada Comp Store Sales | 1.5% (adj. 3.5%) | 4.9% | Below prior |
Competitor Comparison
Key Discount Retail Competitor Performance (Most Recent Comparable Periods)
| Category | Dollarama Q4 FY2026 | Dollar Tree Q4 FY2025 | Five Below (est. FY2026) |
| Revenue | $2,101.3M (CAD) | $5,450M (USD) | $1,730M (USD) est. |
| Revenue Growth YoY | 11.70% | +9.0% | +24% |
| Net Income / Diluted EPS | $1.43 EPS (CAD) | $2.56 EPS (USD) | $4.31 adj. EPS (USD) |
| Gross Margin | 45.5% | 39.1% | N/A |
| Comp Store Sales Growth | 1.5% (adj. 3.5%) | 5.0% | Strong YoY growth |
| Operating Income | $584.9M (CAD) | $695M (USD) | N/A |
| YoY Operating Income Change | +4.7% | +30.2% | N/A |
Dollarama reports in Canadian dollars (CAD); Dollar Tree and Five Below report in US dollars (USD). Dollarama’s higher gross margin profile reflects its direct-import, private-label-heavy model. Q4 FY2026 for Dollarama ended February 1, 2026; Dollar Tree’s Q4 FY2025 ended February 1, 2026 as well; Five Below’s most recent results are for Q4 FY2025 (period ending February 2026).
How the Market Reacted?
Dollarama’s Q4 and full-year FY2026 results triggered a +3.29% intraday rally, with shares closing at C$186.58 on March 24, 2026. The stock had been down approximately 5.93% year-to-date and 9.05% from its 52-week high of C$209.96 heading into the report, so the beat provided a welcome relief bounce. Market commentary described the report as an “earnings beat,” noting that bigger basket sizes offset weaker foot traffic – a hallmark of value retail resilience in cautious economic environments.
The 13.4% quarterly dividend hike to $0.1200 per share added a further catalyst, signaling management confidence in the company’s free cash flow generation. Analyst consensus remained at “Outperform” with 16 analysts covering the stock and an average price target of C$212.06, implying approximately 13.7% upside from the post-earnings close.
