Dollarama Inc.

Strong Q2 + first-half performance; value proposition holding up (Canada + Latin America) - Q2 FY27 consolidated sales +17.6% YoY to >$2B; EBITDA +11% YoY to $653M (32.2% EBITDA margin). - Net earnings $349.3M, diluted EPS +11.2% YoY to $1.29 (vs. $1.16 last year). - Canada SSS +5.4% in Q2 (notably above last year’s +4.9%); traffic +3.7% in Q2 (per management). - Demand mix: consumables and general merchandise sustained; seasonal stable YoY (with summer seasonal doing well, indicating some resilience in more discretionary items). - *Good:* Continued momentum supports credibility of guidance raises; *Surprising:* category commentary noted toys performed “extra strong” vs history.

Guidance raised (Canada same-store sales) but management remains cautious for H2 - Based on first-half performance, Dollarama increases FY27 Canada SSS guidance to 4.0%–4.5% (from 3.0%–4.0%). - Management signals deceleration risk in back half due to macro uncertainty (household budget pressure, trade tensions, geopolitics), even though Q2 momentum was consistent “through the quarter.” - *Good:* raise confirms stronger H1 than previously expected; *Bad/Risk:* guidance implies prudent underwriting of softer H2 consumer conditions.

Canada expansion accelerates; logistics hub progress supports long-term operating leverage - Canada store growth: 15 net new stores in Q2, 43 net new stores YTD; total Canadian store count ~1.73k. - Updated FY27 net store outlook: 65–75 net new stores (up from 60–70) driven by execution/leasing opportunity and ability to open within the fiscal year. - Logistics: construction of Western Canada logistics hub on plan; expected fully operational by end of calendar 2027, enabling a shift to a 2-node distribution model. - *Opportunity:* scaling + distribution modernization can support margin resilience and future cost efficiency; *Risk:* guidance increase is execution-dependent, not a guaranteed permanent step-change.