Groupe Dynamite Q2 Revenue Rises 29.8% Amid Store Expansion
Groupe Dynamite posts strong Q2 results with $423.6M revenue and raised full-year guidance.
Groupe Dynamite reported second-quarter revenue of $423.6 million, a 29.8% year-over-year increase, as the Canadian retailer expanded its presence in the United States and internationally. The company achieved comparable store sales growth of 10.3%, or 12.3% on a constant-currency basis, marking a shift from the 28.6% growth recorded in the same period last year.
Retail sales per square foot climbed 28.9% to $1,056, reflecting improved productivity across the store network. Net earnings rose 77.5% to $113.4 million, with diluted earnings per share increasing to $1.00 from $0.56. This financial performance was bolstered by a $9.4 million recovery from tariff refund claims; excluding this one-time item, adjusted net earnings still grew by 68.1%.
Digital Sales and Store Footprint Growth
Online revenue reached $61.4 million, up 31.5% from the second quarter of fiscal 2025. The company opened seven new locations during the quarter, six in the U.S. and one in the U.K., all under the Garage brand. Simultaneously, Groupe Dynamite renovated or relocated seven stores and closed seven others, optimizing its fleet in Canada and the United States.
Management indicated that the speed of their luxury-inspired operating model allowed for quick in-season assortment adjustments. President and COO Stacie Beaver noted that this agility helped deliver products that resonated with customers, reinforcing brand connection and driving the observed improvements in store-level productivity.
Fiscal 2026 Guidance Raised
Based on these results, Groupe Dynamite raised its full-year fiscal 2026 outlook. The company now expects comparable store sales growth of 12% to 14%, an increase from the previous 11% to 14% range. Total revenue growth is projected at 25% to 27%, up from the earlier forecast of 22% to 25%.
Adjusted EBITDA margin is now forecast at 39.5% to 40.5%, compared with the prior estimate of 38.25% to 39.5%. The retailer continues to target 24 to 26 new store openings for the fiscal year, supported by enhanced efficiency at its U.S. distribution center and expanded shipping to nine additional countries. This data was reported in GN auto stocks/consumer: retail earnings coverage.
