The following is a summary of the Dollarama Inc. (DLMAF) Q1 2025 Earnings Call Transcript:

Financial Performance:

• Dollarama reported a strong topline growth with Q1 fiscal 2025 earnings per share up by 22.2%.

• Sales increased by 8.6% over Q1 fiscal '24 totaling CAD 1.4 billion, with same-store sales growing by 5.6%.

• Gross margin rates improved to 43.2% reflecting benefits from renewed shipping contracts and lower logistic costs.

• The company continued its share repurchase program, buying 1.3 million common shares for cancellation for CAD 145.5 million.

Business Progress:

• Dollarama opened 18 new stores, increasing the total to 1,569.

• Announced plans to expand Dollarcity in Latin America and acquire an additional 10% in Dollarcity, raising ownership to 60%.

• Confirmed entry into the Mexican market with an 80% equity interest planned for 2026.

Opportunities:

• Expansion in Latin America and planned entry into the Mexican retail market with Dollarcity.

• Strong local partnerships and strategic acquisitions poised to enhance growth in LATAM countries.

• Plans for increasing the long-term store target in Dollarcity's current countries of operation from 850 by 2029 to 1,050 by 2031.

Risks:

• Dollarcity's gradual growth as it scales and integrates new markets.

• Consumables and essentials showing strong demand with prudent spending by customers implying potential moderation in discretionary spending areas.

More details: DOLLARAMA INC IR

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