• Dollarama Inc DLMAF reported an EPS of $0.703, slightly under expectations yet maintained solid performance in Q3 2025.
• Sales rose by 5.7% to $1.56 billion, with a notable 3.3% rise in comparable store sales.
• EBITDA and operating income increased by 6.5% and 5.4% respectively, reflecting efficient operations and profitability enhancements.

Dollarama Inc, trading as DLMAF on the PNK exchange, is a leading Canadian discount retailer operating an extensive store network that offers a range of affordable goods. Competing with other discount brands like Dollar Tree and Family Dollar, Dollarama thrives due to its value-oriented business model catering to price-sensitive shoppers.

On December 4, 2024, Dollarama announced an earnings per share of $0.703, slightly below the anticipated $0.704. Nevertheless, the company reported robust financial performance in its Q3 2025 results. Sales increased 5.7% reaching $1.56 billion, surpassing last year’s figures of $1.48 billion, backed by a 3.3% rise in comparable store sales, following an impressive 11.1% growth previously.

Further, Dollarama’s EBITDA saw a substantial rise of 6.5%, reaching $509.7 million with an EBITDA margin of 32.6%. Operating income also improved by 5.4% reaching $407.5 million, sustaining an operating margin of 26.1%. These numbers highlight the company’s ability to effectively manage operations successfully while achieving substantial profits. The diluted net earnings per share saw a rise of 6.5% to $0.98, confirming the financial strength of the organization.

Dollarama has opened 18 new stores against 16 last year, and successfully bought back 1,360,635 shares for approximately $186.2 million. The firm plans to extend its long-term store target in Canada to 2,200 by 2034. Furthermore, an agreement has been reached to acquire land in Calgary, Alberta to establish a logistics hub for its Western Canadian operations lending to its growth plans.

Financial metrics further support Dollarama’s performance overview. The company has a price-to-earnings (P/E) ratio around 36, suggesting strong investor confidence. Its price-to-sales ratio stands at about 6.43, and the enterprise value to sales ratio hovers around 7.14, which speaks to the market’s overall valuation system towards the firm’s sales strength. The debt-to-equity ratio sits approximately at 1.92, highlighting a balanced financing approach while ensuring a current ratio around 1.99, indicating healthy short-term financial condition.