Groupe Dynamite introduces share buyback program after ‘breakthrough’ year

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Groupe Dynamite Inc. has released its financial results for its fourth quarter and fiscal year 2024, which ended February 1, 2025, introducing a return of capital to shareholders via implementation of a share buyback program.

Andrew Lutfy - Photo courtesy of Carbonleo
Andrew Lutfy – Photo courtesy of Carbonleo

“Fiscal 2024 was a breakthrough year for Groupe Dynamite—one that reaffirmed the power of our brands and our vision. Our strong financial and operational results are the outcome of relentless focus, a responsive supply chain, and deep cultural relevance. Garage and Dynamite aren’t just brands—they’re platforms for confidence, creativity, and connection. As we look ahead, we acknowledge the current market uncertainty and we remain focused on staying agile, embracing change, and seizing opportunities in a rapidly evolving environment,” said Andrew Lutfy, Chief Executive Officer and Chair of the Board.

Stacie Beaver
Stacie Beaver

“Our Fiscal 2024 performance reflects the strength of our brands and the focus of our teams. We delivered on-trend collections that resonated strongly, and we activated cultural moments that sparked real engagement. From our high-impact real estate strategy to our upcoming U.S. distribution center launch, we’re continuing to build an agile, omnichannel platform designed for scale. As we head into Fiscal 2025, our growth is anchored in a clear brand flywheel: we create brand moments that drive visibility, empower ambassadors to expand reach, and reward loyal customers who fuel our momentum. This is how we win—by staying close to her world and delivering an experience that is emotionally resonant, community-driven, and impossible to ignore,” added Stacie Beaver, President & Chief Operating Officer

“Our top priority remains reinvesting in the business to drive long-term growth, as reflected in our FY25 capital expenditure guidance, which is primarily focused on opening new stores in high-quality real estate. In these volatile times, we are opportunistic in taking market share and securing new premier locations to strengthen our real estate portfolio. Given our strong balance sheet and robust free cash flow generation, along with the belief that the market price of the subordinate voting shares may from time to time not reflect the underlying value of the subordinate shares, we believe a Normal Course Issuer Bid provides an opportunistic way to return capital to shareholders. In this context, we see value in repurchasing shares when appropriate, while maintaining a disciplined capital structure. We believe that introducing an NCIB demonstrates our confidence in the company’s fundamentals and our commitment to delivering long-term shareholder value,” said Jean-Philippe D. Lachance, Chief Financial Officer.

Source: Groupe Dynamite website
Source: Groupe Dynamite website

The results for Q4 2024 and Fiscal 2024 reflect one fewer week compared to the results for Q4 2023 and Fiscal 2023. All comparable store data for both the quarter and the year are presented on a comparable basis of 13 and 52 weeks, respectively.

Fiscal 2024 Fourth Quarter Highlights

  • Revenue increased by 13.1% to $271.8 million in Q4 2024, compared to $240.3 million in Q4 2023. Excluding the 14th week of Q4 2023, total revenue increased by 18.8%.
  • Comparable store sales growth of 9.5% in Q4 2024, over and above comparable store sales growth of 9.8% in Q4 2023.
  • Gross margin slightly expanded by 0.1% to 59.0% in Q4 2024 compared to 58.9% in Q4 2023.
  • SG&A increased to $87.0 million in Q4 2024, compared to $74.4 million in Q4 2023, and adjusted SG&A as a percentage of sales decreased to 29.6% from 30.5% over the same period in Fiscal 2023.
  • Operating income increased by 4.6% to $50.7 million in Q4 2024, compared to $48.5 million in Q4 2023.
  • Adjusted EBITDA increased by 17.0% to $79.5 million in Q4 2024, representing an adjusted EBITDA margin of 29.2%, compared to 28.3% over the same period in Fiscal 2023.
  • Diluted net earnings per share increased to $0.28 in Q4 2024, compared to $0.27 in Q4 2023 and adjusted diluted net earnings per share increased by 18.3% to $0.33 in Q4 2024, compared to $0.28 in Q4 2023.
  • Real estate activity for Q4 2024 includes:
    • Opening of 2 gross new stores in the United States under the Garage banner
    • Closure of 3 stores: 1 in the United States under the Dynamite banner and 2 in Canada under the Garage banner
    • Completion of 1 store relocation in the United States under the Garage banner
Source: Groupe Dynamite website
Source: Groupe Dynamite website

Fiscal 2024 Highlights

  • Completed the relocation and renovation of 4 stores in the United States under the Garage banner
  • Revenue increased by 19.7% to $958.5 million in Fiscal 2024, compared to $800.8 million in Fiscal 2023. Excluding the 53rd week of Fiscal 2023, total revenue increased by 21.4%.
  • Comparable store sales growth of 12.3% in Fiscal 2024, over and above comparable store sales growth of 8.2% in Fiscal 2023.
  • Retail sales per square foot increased by 18.6% since the end of Fiscal 2023, reaching $734 in Fiscal 2024.
  • Gross margin expanded by 2.0% to 62.8% in Fiscal 2024 compared to 60.8% in Fiscal 2023.
  • SG&A increased to $313.2 million in Fiscal 2024, compared to $272.3 million in Fiscal 2023 and adjusted SG&A as a percentage of sales decreased to 31.2% from 33.7% in Fiscal 2023.
  • Operating income increased by 46.2% to $212.2 million in Fiscal 2024, compared to $145.2 million in Fiscal 2023.
  • Adjusted EBITDA increased by 39.5% to $303.3 million in Fiscal 2024, representing an adjusted EBITDA margin of 31.6%, compared to 27.1% over last year, driven by higher gross margin and operating leverage.
  • Diluted net earnings per share increased to $1.25 in Fiscal 2024, compared to $0.80 in Fiscal 2023, and adjusted diluted net earnings per share increased by 64.9% to $1.36 in Fiscal 2024, compared to $0.82 in Fiscal 2023.

Real estate activity for Fiscal 2024 includes:

  • Opening of 20 gross new stores: 17 in the United States under the Garage banner and 3 in Canada under both banners
  • Closure of 12 stores: 2 in the United States under both banners and 10 in Canada under both banners

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