Dollarama Inc. reported higher sales and earnings in the second quarter as the discount retailer expanded into two new international markets.

The company’s sales were up 10.3 per cent to $1.72 billion in the quarter ended Aug. 3, an increase it said was driven by growth in its total number of stores. This includes sales by stores acquired in its $208.8-million purchase of The Reject Shop Ltd., the largest discount retailer in Australia.

The retailer also opened its first Dollarcity store in Mexico in the quarter.

“The second quarter of fiscal 2026 marked a significant milestone in our international expansion, with entries into two new markets,” chief executive Neil Rossy said in a press release.

In Canada, Dollarama’s comparable store sales rose by 4.9 per cent, with the number of transactions up 3.9 per cent. The company said the increase was primarily driven by strong demand for consumables. It opened 27 new stores in Canada in the quarter.

The company reported a 12.4 per cent growth in net earnings to $321.5 million, which resulted in a 13.7 per cent increase in diluted net earnings per common share to $1.16 compared to the prior fiscal year.

Its e arnings before interest, taxes, depreciation and amortization (EBITDA) were up by 12.2 per cent to $588.5 million, representing an EBITDA margin of 34.1 per cent.

Operating income was up by 14.3 per cent to $483.5 million. The company will hold its earnings call at 10:30 a.m. ET on Wednesday.