Dollarama (TSX:DOL) has consistently proven why it is one of the most reliable performers on the Canadian stock market. The discount retailer continues to deliver impressive returns for its shareholders, building on a strong track record of growth and resilience. After about a 47% gain in 2024, Dollarama’s momentum hasn’t slowed down. DOL stock has already climbed another 36.7% so far in 2025.
The considerable gain in this Canadian stock reflects the strength of Dollarama’s business model. This value retailer offers a wide selection of everyday essentials, seasonal products, and general merchandise at a range of low fixed price points. This low-cost approach continues to attract cost-conscious consumers in all economic situations, supporting its financials and share price.
Looking ahead, this Canadian stock could continue to deliver above-average returns as it continues to expand its footprint in both domestic and international markets.
Dollarama performs strongly in the first half
Dollarama’s value-driven business model continues to thrive even in uncertain economic times. The discount retailer posted strong results in the first half of fiscal 2026, reflecting its resilience and continued ability to attract cost-conscious consumers.
Sales climbed 9.3% in the first six months of the year, supported by a 4.9% increase in comparable store sales across Canada. The company’s steady pace of new store openings also played a key role in driving growth. During the second quarter alone, Dollarama added 27 net new stores, bringing its total to 49 new locations so far this fiscal year and expanding its nationwide footprint to 1,665 stores. With this momentum, the discount retailer appears well on track to meet its goal of opening between 70 and 80 net new stores by year-end, a move that should further strengthen its top line.
Profitability was even more impressive. Net earnings jumped 18.6% year-over-year, while earnings per share (EPS) rose 19.6%, reflecting both higher sales volumes and effective cost management. Dollarama’s consistent performance highlights its position as a reliable player in Canada’s retail landscape and an attractive option for investors seeking stability and steady growth amid ongoing economic volatility.
Dollarama stock to deliver steady gains
Dollarama is well-positioned to deliver consistent growth and reliable returns. The company’s focus on affordability makes it a defensive play, while its disciplined expansion strategy keeps growth both sustainable and efficient. The retailer is expanding its store base, which is expected to accelerate its sales growth. Moreover, these new stores have quick payback periods and require minimal maintenance costs.
At the same time, Dollarama has been quick to adapt to changing consumer habits. By expanding its presence on third-party delivery platforms, the retailer is adding convenience for customers, which is expected to translate into incremental sales.
Furthermore, Dollarama’s diverse product mix, which includes well-known brands and private-label goods, enables the company to appeal to a broad customer base while maintaining healthy margins. In addition, its direct sourcing from suppliers further strengthens its cost control and bargaining power.
The company will also benefit from its recent acquisition of Australia-based discount retailer, The Reject Shop Limited (TRS). The move expands Dollarama’s international footprint and geographically diversifies its exposure beyond Canada.
In addition to steady capital gains, Dollarama’s shareholders have also benefited from the company’s consistent dividend growth. It has uninterruptedly increased its dividend since 2011 and is likely to maintain this growth streak.
Notably, the highest 12-month price target for Dollarama stock is $222.86, suggesting an upside potential of around 16.5% from its closing price of $191.26 on November 12. Over the past five years, Dollarama stock has grown at a compound annual growth rate (CAGR) of 31.7%. If it maintains that pace, its shares could climb to approximately $251.89 in one year.
