The following is a summary of the Dollarama Inc. (DLMAF) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Dollarama reported strong financial results for Q2 2025 with an EPS of $1.02 and sales increasing by 7.4% to nearly $1.6 billion.

• Same-store sales grew by 4.7%, reflecting steady customer demand, particularly for consumable products.

• Gross margin improved to 45.2%, driven by favorable contracted shipping rates and lower logistics costs.

• Dollarcity's net earnings contribution nearly doubled compared to the same quarter last year, reaching $22.7 million.

• EBITDA for Q2 increased by 14.7% to $524.3 million.

Business Progress:

• Expansion in LATAM continues with Dollarcity opening 23 new stores, raising the total to 570. Plans to enter Mexico by 2026 are progressing as planned.

Opportunities:

• Increased demand for consumable products highlights the opportunity for sustained growth in essential goods.

• Expansion into Mexico and increased store count in LATAM suggests potential for significant market growth.

Risks:

• Seasonal products showed softer demand, reflecting possible fluctuations in consumer spending patterns.

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