Groupe Dynamite talks up Q4 sales, raises outlook

Executive Summary

• Groupe Dynamite Inc. reported strong holiday performance with comparable store sales growth of 30.8% for the first nine weeks of Q4 fiscal 2025 (ending Jan 3, 2026) and 26.6% year-to-date.
• The company updated its full-year fiscal 2025 guidance, raising the comparable store sales growth range to 26.5%–27.0% and increasing the lower end of the adjusted EBITDA margin range to 36.0% (range: 36.0%–37.0%).
• Capital expenditure guidance was revised downward to $80.0M–$90.0M, and the company plans to launch its UK e-commerce platform and physical stores in Q1 2026.

Key Details

• Q4 Fiscal 2025 Performance (First 9 Weeks): Comparable store sales growth of 30.8% as of Jan 3, 2026.
• Year-to-Date Performance: Comparable store sales growth of 26.6% as of Jan 3, 2026.
• Digital Performance: Online revenue growth significantly outpaced brick-and-mortar growth in Q4, resulting in higher online penetration. Note: Comparable sales metric reflects brick-and-mortar channel only.
• Revised Fiscal 2025 Guidance:
  • Comparable Store Sales Growth: Updated to 26.5% – 27.0%.
  • Adjusted EBITDA Margin: Lower end raised by 100 basis points to 36.0%; new range is 36.0% – 37.0%.
  • Capital Expenditures: Revised to $80.0 million – $90.0 million (previously $85.0M – $95.0M), primarily due to payment timing.
• Real Estate / Store Count:
  • Expected 20 gross store openings and 11 closures for fiscal 2025.
  • Net new store openings: 9.
  • Total expected year-end store count: 307.
  • All openings to date are under the "Garage" banner in the United States.
• International Expansion:
  • UK e-commerce platform launch planned for late Q1 2026.
  • UK brick-and-mortar store launches planned for late Q1 2026.
• Future Reporting:
  • Full financial results for Q4 and fiscal 2025 expected on or around April 1, 2026.
  • Conference call with management scheduled for the same day.
  • Guidance for the 52-week period ending Jan 30, 2027, will be provided alongside the Q4/fiscal 2025 results.

Notable Quotes

• "Our values-led culture continues to drive disciplined execution, resulting in strong holiday performance. This momentum, supported by our selective real estate strategy and rising digital engagement, is driving meaningful margin expansion and reflects the strength of our luxury-inspired operating model. As we close out fiscal 2025, we're preparing to launch U.K. e-commerce in Q1 and look forward to opening our first U.K. stores also later in Q1," said Stacie Beaver, president and chief operating officer.