We all love safe stocks that keep climbing even when the market feels shaky. Dollarama (TSX:DOL) has been that kind of name on the TSX as it continues to reward shareholders year after year.
From offering simple products at low prices to growing into a retail giant with stores across Canada, Latin America, and now Australia, Dollarama’s continuing to expand without losing its edge. What makes it even more interesting today is not just its strong past performance but the momentum it has kept even in a challenging consumer environment.
With DOL stock now trading close to its 52-week high at $189.66 per share with a market cap of $52.4 billion, many investors are wondering if there is more upside or if the best days are already behind it. In this article, I’ll break down Dollarama’s latest financial growth trends and key fundamental drivers, and tell you why its stock may still be worth holding.
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Dollarama’s growth story continues
As a top Canadian value retailer, it currently operates 1,665 stores across the country, and through its majority interest in Dollarcity, it has more than 650 locations across Latin America. With the recent $208.8 million acquisition of The Reject Shop, Dollarama also entered the Australian market, instantly adding 395 stores to its footprint. This global reach gives this Mont Royal-based firm exposure to three continents.
Interestingly, DOL stock has surged by over 285% in the last five years. What continues to support Dollarama’s stock is its ability to post consistent double-digit growth in key metrics. In the second quarter (ended in July) of its fiscal year 2026, the company’s sales climbed 10.3% YoY (year-over-year) to $1.7 billion with the help of strong demand for consumables and comparable store sales growth of 4.9% in Canada.
On the profitability side, its EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 12.2% YoY in the latest quarter to $588.5 million, with margins improving to 34.1% from 33.5% due mainly to lower logistics costs in Canada. That consistent growth explains why DOL stock has remained so resilient despite weak consumer spending.
Focus on long-term expansion plans
One of the main factors that makes Dollarama stock even more attractive in 2025 is its increasing focus on international growth. Its recent The Reject Shop acquisition gave it a platform in Australia that its management plans to optimize over the coming years. In Latin America, Dollarcity continues to shine as it reported 16.4% YoY sales growth in the recent quarter and added new stores across Colombia, Guatemala, El Salvador, Peru, and now Mexico.
Encouraged by these positive developments, the company is targeting 70 to 80 net new stores in fiscal 2026, comparable store sales growth of 3% to 4%, and gross margins between 44.2% and 45.2%. In addition, Dollarama is also developing a new Western logistics hub to support expansion. These plans clearly highlight its focus on sustainable growth.
Should investors buy Dollarama stock now?
While Dollarama is not a high-yield dividend stock, its appeal mainly lies in its resilience. It has consistently proven that it can thrive in both good and tough economic conditions by offering products that people need at prices they can afford. With its global expansion just starting and Canadian sales showing steady strength, I find the company’s long-term story very promising.
That’s why, for investors looking for stability, growth, and a top TSX-listed company with a clear expansion strategy, Dollarama stock could be a great option even near its 52-week high.
