Fashion retailer Groupe Dynamite (GRGD.TO) on Tuesday reported higher than expected first quarter adjusted net earnings, even as revenues just missed forecast, while it tweaked its fiscal 2026 guidance.
Adjusted net earnings, which excludes most one-time items, more than doubled to $57.3 million or $0.50 per adjusted diluted share, and beat the $0.44 forecast by analysts polled by FactSet. The company reported adjusted earnings of $28.4 million, or $0.25 per adjusted diluted share in the prior year period.
Total revenue surged 37% to $310.6 million over the same period, just below the $311.6 million expected. This growth was boosted by a 22.6% increase in comparable store sales and contributions from new stores, the company said. Online revenue jumped near 36% to $50.6 million in the quarter.
Groupe Dynamite also tweaked its fiscal 2026 guidance and is now guiding to adjusted EBITDA margin of between 38.25% to 39.5%, above the previous 37.75% to 39.25%. It is reducing the number of net new store openings to 8 to 10, down from the previous 10 to 12.
"Q1 was a strong start to fiscal 2026. Across both GARAGE and DYNAMITE, customers responded positively to our assortments, marketing campaigns and the consistency of the experience we deliver across channels. Our real estate strategy continues to be a significant driver of growth, customer acquisition and profitability. By opening new locations in premium centers, optimizing our fleet and delivering a compelling in-store experience, we continue to drive significant productivity improvements across our store network," said chief operating officer Stacie Beaver.
Groupe Dynamite shares closed up $5.27, to $74.44 on Monday on the Toronto Stock Exchange.