• Sales growth of 7.1%
• Comparable store sales growth of 5.4% (excluding temporarily closed stores)
• Net earnings of $142.5 million and diluted net earnings per share of $0.46
• 13 net new stores opened in the quarter, bringing total store count to 1,314 across Canada
• Continued execution of COVID-19 measures and related investments to protect the health and safety of employees and customers

Montreal, Canafa – Dollarama Inc. reported its financial results for the second quarter ended August 2, 2020.

“Our strong financial performance in the second quarter reflects Dollarama’s positioning as a shopping destination of choice for Canadians from coast to coast for convenience and a compelling assortment of affordable, everyday products. Our sales were strong, driven by the demand for summer seasonal items, and store traffic improved with each month as provincial reopening plans unfolded,” said President and CEO Neil Rossy.

“All of our stores were open to serve customers entering the third quarter and we continue to closely monitor consumer shopping patterns to ensure our store offering remains relevant to Canadian families in the evolving socio-economic environment shaped by the pandemic. The health and safety of our employees and customers remain paramount. We will diligently maintain our COVID-19 operating procedures and health and safety measures in accordance with public health directives and as the situation continues to evolve,” added Mr. Rossy.

Second Quarter Fiscal 2021 Highlights Compared to Second Quarter Fiscal 2020

• Sales increased by 7.1% to $1,013.6 million.
• Comparable store sales(1)excluding temporarily closed stores grew 5.4% and comparable store sales(1) including temporarily closed stores grew 2.5%.
• Gross margin(1)was 43.9% of sales, compared to 43.7% of sales.
• EBITDA(1) decreased by 1.3% to $277.9 million, or 27.4% of sales, compared to 29.8% of sales.
• Operating income decreased by 4.6% to $211.4 million, or 20.9% of sales, compared to 23.4% of sales.
• Diluted net earnings per common share increased by 2.2%, to $0.46 from $0.45.
• Direct costs related to COVID-19 amounted to $34.3 million (which includes $1.9 million in gross margin and $32.4 million in SG&A).
• 13 net new stores were opened, compared to 14 net new stores.