DOLLARAMA REPORTS FISCAL 2027 FIRST QUARTER RESULTS

• Fiscal 2027 Q1 sales reached $1.846 billion, up 21.4% year-over-year, driven by store expansion and 5.6% comparable store sales growth in Canada.
• Net earnings rose 10.4% to $302.3 million, translating to diluted EPS of $1.11 (+13.3% YoY).
• EBITDA grew 17.4% to $582.5 million, with a margin of 31.6%.
• Gross margin came in at 43.9% of sales, while SG&A represented 16.5% of sales.
• Opened 28 net new stores in Canada (total 1,719), 8 net new in Australia (total 410), and 20 net new in Latin America via Dollarcity (total 752).
• Repurchased 1,962,010 shares for $339.1 million at a weighted average price of $172.83.
• Declared a quarterly dividend of $0.1200 per share.
• Reaffirmed FY2027 Canadian segment guidance: 60-70 net new stores, 3.0%-4.0% comparable sales growth, 45.0%-45.5% gross margin, 14.1%-14.6% SG&A, and $420.0M-$470.0M capital expenditures.
• Australian segment continues to expect a net loss for FY2027 as it undergoes transformation.

• The Q1 results feature a genuine beat on comparable store sales (+5.6% vs 3-4% guide), which is positive for a defensive retailer. However, the simultaneous misses on gross margin and SG&A, combined with the expected Australia net loss, dilute the quality of the beat. The stock's +6.5% run into the print suggests the market had already priced in steady execution. The margin compression is a structural flag during expansion, and the lack of a guide raise or new strategic catalyst makes this a Routine - Positive outcome rather than a re-rating event.

• Dollarama Inc. is a leading discount retailer operating across Canada, Australia, and Latin America. The company is known for its value proposition, resilient business model, and aggressive store expansion strategy. It operates through its core Canadian discount stores, The Reject Shop in Australia, and Dollarcity in Latin America via joint ventures. The business benefits from consumer trade-down trends and a focus on consumables and general merchandise.