Dollarama Inc. (PNK:DLMAF) Surpasses Q4 Earnings and Revenue Estimates

• Earnings per share of $0.963, beating the estimated $0.901.
• Revenue reached approximately $1.29 billion, surpassing the estimated $1.06 billion.
• Comparable store sales grew by 4.9% in the fourth quarter.

Dollarama Inc. (PNK:DLMAF) is a leading Canadian discount retailer known for offering a wide range of affordable products. The company operates numerous stores across Canada and has been expanding its presence in Latin America. Dollarama competes with other discount retailers like Dollar Tree and Family Dollar, focusing on providing value to cost-conscious consumers.

On April 3, 2025, Dollarama reported impressive financial results for the fourth quarter. The company achieved earnings per share of $0.963, surpassing the estimated $0.901. Revenue also exceeded expectations, reaching approximately $1.29 billion compared to the estimated $1.06 billion. This strong performance reflects Dollarama's ability to navigate a challenging economic environment.

During the Q4 2025 earnings conference call, attended by analysts from major financial institutions, Dollarama's leadership highlighted key achievements. Comparable store sales grew by 4.9% in the fourth quarter and 4.6% for the fiscal year. The company's diluted net earnings per share rose by 21.7% to $1.40 in the fourth quarter and by 16.9% to $4.16 for the fiscal year, meeting or exceeding fiscal 2025 guidance.

Dollarama's financial metrics indicate a robust market position. The P/E ratio of approximately 41.46 suggests strong investor confidence, while the price-to-sales ratio of about 7.29 reflects the market's valuation of the company. The enterprise value to sales ratio of around 8 further underscores Dollarama's solid valuation relative to its sales.

Despite a high debt-to-equity ratio of approximately 3.69, Dollarama maintains a reasonable liquidity level with a current ratio of about 1.43. The company's strategic focus on growth and value delivery, as emphasized by CEO Neil Rossy, positions it well for continued success in both Canadian and Latin American markets.