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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