Dollarama (TSX:DOL) stock has been a star performer. After soaring more than 47% in 2024, this Canadian stock has kept its winning streak alive in 2025, climbing another 38% year to date. This sustained momentum is supported by Dollarama’s resilient business model, consistent growth, and ability to thrive even in uncertain economic conditions.
As Canada’s leading value retailer, Dollarama offers a broad range of consumables, general merchandise, and seasonal items, with prices capped at $5. This low and fixed-price strategy continues to resonate with cost-conscious shoppers, making the company something of an all-weather stock — one that delivers steady results regardless of the broader economic climate.
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Dollarama’s solid start to fiscal 2026
Dollarama’s solid start to fiscal 2026 reflects the resiliency of its business. In the first quarter of fiscal 2026, revenue rose 8.2% despite macro uncertainty. This growth was driven by store expansion and higher same-store sales.
Over the past year, Dollarama grew its footprint from 1,569 locations in April 2024 to 1,638 by May 2025. Comparable store sales increased 4.9%, building on an already strong 5.6% gain a year earlier. Notably, this growth came from a healthy mix of higher transaction volumes (up 3.7%) and larger average basket sizes (up 1.2%), mainly driven by robust demand for everyday consumables and a strong seasonal product lineup.
On the profitability front, Dollarama delivered even more impressive gains. Operating income jumped 20.7%. Moreover, operating margin expanded to 25.6% from 22.9% thanks to higher sales and reduced logistics costs. Net earnings surged 26.9% to $273.8 million, while earnings per share climbed 27.3% to $0.98 from $0.77.
With its expanding store network, efficient operations, and consistent demand for its low-cost offerings, Dollarama is poised to deliver solid growth, which will continue to drive its share price higher.
Dollarama delivers stellar total returns
Dollarama has built a reputation for delivering stellar total returns, making it a compelling choice for investors seeking both growth and stability. Despite operating a defensive business, Dollarama continues to trade like a growth stock. It has consistently outperformed the broader markets.
Over the past five years, Dollarama’s share price has surged an incredible 293%, reflecting a compound annual growth rate (CAGR) of roughly 31.4%.
Dollarama’s shareholder-friendly approach adds to its appeal. Since 2011, Dollarama has raised its dividend an impressive 14 times, reflecting management’s commitment to rewarding investors while continuing to expand its footprint.
Momentum in Dollarama’s business to sustain
Dollarama’s growth shows no signs of slowing, with several strategic moves set to keep its momentum going strong. The company’s value-focused pricing model remains a key competitive advantage, allowing it to maintain steady growth even when consumer discretionary spending is under pressure or trade conditions are unpredictable. By continuing to offer everyday essentials and seasonal products at accessible price points, Dollarama is well-positioned to weather economic uncertainty while attracting a loyal customer base.
Adding to its strength, Dollarama has embraced e-commerce convenience through partnerships with third-party online delivery platforms, offering same-day delivery directly to Canadian households. This added convenience is likely to drive further engagement and sales.
The company’s recent acquisition of The Reject Shop Limited (TRS), a discount retailer in Australia, opens up a new chapter in Dollarama’s international growth. This move diversifies its market exposure and creates a fresh platform for long-term expansion beyond Canada.
On top of these initiatives, Dollarama is planning a robust store expansion, targeting the opening of 70 to 80 net new locations in fiscal 2026. This continued physical footprint growth will contribute meaningfully to revenue generation and overall financial performance.
Is Dollarama stock a buy?
Dollarama’s recent rally has certainly pushed its valuation higher, but the stock still offers stability, income, and growth, which makes it a Buy. The discount retailer’s resilient business model, value-driven pricing strategy, new store openings, and cost-efficient operations will continue to drive its financials and share price higher.
