Dollarama shares jump 8% on Q1 earnings beat expectations

Shares of Dollarama surged approximately 8% on Thursday after the Montreal-based discount retailer reported first-quarter financial results that exceeded analyst expectations across all key metrics. The company's strong performance was driven by robust sales growth in its core Canadian market and continued international expansion.

For the quarter ended May 3, Dollarama reported net earnings of $302.3 million, a 10.4% increase compared to the same period last year. Diluted earnings per share reached $1.11, surpassing the analyst consensus estimate of $0.99. Total sales climbed to $1.85 billion, marking a 21% year-over-year increase and exceeding forecasts. Comparable store sales in Canada grew by 5.6%, significantly outperforming analyst projections.

President and CEO Neil Rossy said the company delivered a strong performance as it pursued profitable growth. He attributed the results to the retailer's value proposition continuing to resonate with consumers navigating economic uncertainty. The company noted that persistent inflation and elevated fuel costs have driven cost-conscious shoppers toward discount retailers.

During the quarter, Dollarama added 28 net new stores in Canada,...