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Consumers are opting for discounted options for goods ranging from pantry staples to cleaning supplies as they look to save money, driving strong demand.Christinne Muschi/The Canadian Press
Dollarama DOL-T on Thursday raised its annual sales forecast after beating analysts’ estimates for third-quarter results, as price-sensitive shoppers turned to its stores for affordable consumables and seasonal merchandise.
Discounted goods ranging from pantry staples to cleaning supplies and personal care items have been a steady draw for consumers dealing with tighter wallets and stubborn inflation, boosting sales at dollar stores.
Inflation in Canada is expected to be temporarily higher in the near term, even as the economy seems to be broadly resilient to the impact of U.S. trade measures.
The company’s CEO Neil Rossy said the business was sustaining growth in an “unpredictable” economic environment thanks to its cost discipline and business expansion in Latin America and Australia.
U.S.-based discount retailers Dollar Tree DLTR-Q and Dollar General DG-N raised their sales and profit forecasts last week, helped by strong demand from deal-hunting consumers.
Dollarama expects fiscal 2026 comparable sales to grow in the range of 4.2 per cent to 4.7 per cent, compared to previous expectations of a 3-per-cent to 4-per-cent rise.
It forecast annual margin in the range of 45 per cent to 45.5 per cent compared to its prior target of 44.2 per cent to 45.2 per cent.
Net sales for the third quarter ended Nov. 2 came in at $1.91-billion , above analysts’ average estimate of $1.87-billion, according to data compiled by LSEG.
Comparable store sales in Canada in the reported quarter rose 6 per cent, driven by a 4.1-per-cent increase in transactions and a 1.9-per-cent rise in average basket size, Dollarama said.
It earned $1.17 per share, beating estimates of $1.10 per share.
