Dollar store chain Dollarama (TSX:DOL) posted its fourth-quarter earnings last week. For the period ending Feb. 2, its comparable store sales growth rate was 4.9%, indicating strong organic growth during the quarter. Its overall sales, which includes all stores, rose by 14.8%, to nearly $1.9 billion. Its net earnings came in at $391 million, which increased by 21% year over year.
It was overall a successful year for the company as it says it met or exceeded its guidance for the recently completed 2025 fiscal year. For the year ahead, Dollarama is still expecting growth and to open more stores. It projects net new store openings between 70 to 80, which is an increase from the 65 it opened last year. And its comparable store sales growth rate will be around 3% to 4%, which suggests a bit of a slowdown from fiscal 2025 where its organic growth rate was 4.6%.
For Dollarama, the biggest uncertainty is how strong the economy will be, and whether there may be a pullback on spending in light of the recently announced tariffs in the U.S., which can lead to job losses for Canadians and a potential recession. Dollarama itself should be in fine position as it can import products from China and other parts of the world without worrying about high tariffs, but it can still struggle if the overall economy isn’t in great shape.
Dollarama stock has been relatively resilient amid the recent market turmoil, with its shares up 10% since the start of the year. This can be a solid option for investors to hold in their portfolios for the long term.