Canadian retail chain Dollarama has witnessed a 7.4% increase in net sales, reaching C$1.56bn ($1.14bn), in the second quarter of the fiscal year 2025 (FY25) compared to C$1.45bn in the same period in FY24.

The retailer's growth is attributed to an expanded store count and comparable store sales, which increased by 4.7% over the quarter.

Dollarama reported net earnings of C$285.9m in Q2 FY25, up 16.3% from C$245.8m in the same quarter of the previous year. The company recorded 20% growth in net earnings for Q1 FY25.

Its earnings per diluted share also increased by 18.6% to C$1.02 in Q2 FY25 from $0.86 in Q2 FY24.

The retailer’s general, administrative and store operating expenses (SG&A) rose marginally by 7.3% to C$212.9m in Q2 FY25.

Dollarama posted its gross margin as 45.2% of sales in the quarter ending 28 July 2024, compared to 43.9% in the same quarter of the previous fiscal year.

The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) reached C$524.3m, representing an EBITDA margin of 33.5% for Q2 FY25.

This is an increase from C$457.2m in the second quarter of fiscal 2024.

Dollarama president and CEO Neil Rossy said: "For the second quarter of fiscal 2025, we generated strong results across the board as comparable store sales continue to normalise.

“Canadian consumers continue to recognise and rely on our compelling value as they deploy their discretionary spending prudently in a challenging economic environment. Our strong traffic trends quarter after quarter also confirm that the breadth of our product offering is allowing us to meet the needs of our consumers."

Looking ahead to the full year 2025, Dollarama anticipates comparable store sales growth of 3.5% to 4.5% and expects gross margin to be between 44% and 45%.

"Dollarama sees 7.4% sales increase in second quarter of FY25" was originally created and published by Retail Insight Network, a GlobalData owned brand.

 

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