Groupe Dynamite Inc. reported on Tuesday its financial results for the fiscal year 2025’s third quarter ended November 1, 2025 as revenue increased by more than 40% and comparable store sales growth rose by more than 31% from a year ago.
“I’m incredibly proud of our teams and their relentless pursuit of excellence resulting in another outstanding quarter with adjusted EBITDA margin reaching a record 40.2%, up 650 basis points year over a year. Comparable store sales increased 31.6%, an acceleration from Q2’s exceptional 28.6%. With most of our tariff volatility behind us we are pleased to report best-in-class gross margin of 66.1%, our highest level in more than three years. While these results continue to exceed expectations, the initiatives driving brand heat are incredibly intentional. Building on this momentum, we are raising our fiscal 2025 guidance on both comparable sales and adjusted EBITDA margin,” said Andrew Lutfy, Chief Executive Officer and Chair of the Board.
“Our teams once again demonstrated the strength of our values-led culture. What we delivered this quarter across product, stores, and digital reflects the intention, discipline, and agility that continue to set us apart. We’re well into our journey to elevate and premiumize both brands, and the customer response remains strong. Operationally, our real estate strategy continues to be a core pillar, with 17 gross openings year-to-date positioning us for sustained, high-quality traffic. On digital, we’re encouraged by the 40 basis points increase in e-commerce penetration in Q3 2025, as we enhance our platforms to support richer storytelling and more seamless experiences. With a solid foundation, real momentum, and teams who move fast and stay aligned, we enter Q4 confident in our ability to raise performance, strengthen brand experiences, and deepen our community connections,” added Stacie Beaver, President and Chief Operating Officer.
“Our profitability and cash flow have exceeded expectations, underscoring the strength of our luxury-inspired operating model and our disciplined execution which mitigates fashion risk,” said Jean-Philippe D. Lachance, Chief Financial Officer of Groupe Dynamite. “At this point, we view a $2.30 per share one-time special dividend as an effective way to return capital to shareholders, consistent with our commitment to enhancing long-term shareholder value. Following this distribution, pro forma leverage will be approximately 1.05x, with total pro forma available liquidity of roughly $316.0 million from cash and credit facilities, leaving us in an excellent financial position to support future growth.”
Fiscal 2025 Third Quarter Highlights
- Revenue increased by 40.3% to $363.0 million in Q3 2025, compared to $258.8 million in Q3 2024.
- Comparable store sales growth of 31.6% (28.6% on a constant currency basis) in Q3 2025, over and above comparable store sales growth of 10.1% in Q3 2024.
- Retail sales per square foot increased by 24.7% compared to Q3 2024, reaching $889 in Q3 2025.
- SG&A increased to $95.8 million in Q3 2025, compared to $80.0 million in Q3 2024, and adjusted SG&A as a percentage of sales decreased by 340 basis points to 25.9% from 29.3% over the same period in Q3 2024.
- Operating income increased by 90.3% to $120.1 million in Q3 2025, compared to $63.1 million in Q3 2024.
- Adjusted EBITDA increased by 67.5% to $146.1 million in Q3 2025, representing an adjusted EBITDA margin of 40.2%, compared to 33.7% for the same period in Q3 2024.
- Diluted net earnings per share increased to $0.71 in Q3 2025, compared to $0.38 in Q3 2024 and adjusted diluted net earnings per share increased by 75.6% to $0.72 in Q3 2025, compared to $0.41 in Q3 2024.
- Real estate activity for Q3 2025 includes:
- Opening of 8 gross new stores in the United States under the Garage banner
- No store closures
- Renovation or relocation of 4 stores: 1 in the United States under the Garage banner and 3 in Canada under both banners.
Groupe Dynamite Inc. operates retail stores and digital experiences under two complementary banners.
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