Groupe Dynamite Inc. reported on Wednesday its financial results for the fourth quarter and full year of fiscal 2025 ended January 31, 2026.
“Q4 and Fiscal 2025 were exceptional. Comparable store sales increased 30.4% in Q4, driving 26.7% growth for the year, while record gross margin and profitability underscored the strength and scalability of our luxury-inspired business model. These results reflect years of engineering our agile operating model. I’m incredibly proud of our teams, who tackled unforeseen challenges head-on, mitigated impacts before they materialized, while embodying our ownership culture. We also expanded GARAGE into the UK early in Fiscal 2026, marking a key milestone in one of the world’s most important fashion markets. While it’s still early, we are encouraged by the strong customer response. We enter the new year with strong momentum, with a clear focus: stay disciplined, elevate our brands, and build on what’s working,” said Andrew Lutfy, Chief Executive Officer and Chair of the Board.
“Our performance this quarter reflects the strength of our values-led culture and the efforts of our teams as we continue advancing our brand elevation initiatives. Store productivity remained robust, with sales per square foot reaching $952 in Q4 2025, up nearly 30% year-over-year. Our real estate strategy focused on upgrading our store portfolio continues to work for us. Digital also delivered strong performance, with e-commerce sales up 63.3% year-over-year, driving record quarterly penetration and lifting full-year penetration to 18.9%. In support of this continued momentum, 2025 also saw the opening of our US Distribution Center, enhancing our operational capabilities and supporting growth across North America,” added Stacie Beaver, President and Chief Operating Officer.
Fiscal 2025 Fourth Quarter Highlights
- Revenue increased by 45.0% to $394.2 million in Q4 2025, compared to $271.8 million in Q4 2024.
- Comparable store sales growth of 30.4% (27.3% on a constant currency basis) in Q4 2025, over and above comparable store sales growth of 9.5% in Q4 2024.
- Gross margin expanded by 400 basis points to 63.0% in Q4 2025 compared to 59.0% in Q4 2024.
- SG&A increased to $105.8 million in Q4 2025, compared to $87.0 million in Q4 2024, and adjusted SG&A as a percentage of sales decreased by 340 basis points to 26.2% from 29.6% over the same period in Q4 2024.
- Operating income increased by 128.8% to $116.0 million in Q4 2025, compared to $50.7 million in Q4 2024.
- Adjusted EBITDA increased by 81.6% to $144.4 million in Q4 2025, representing an adjusted EBITDA margin of 36.6%, compared to 29.2% for the same period in Q4 2024.
- Diluted net earnings per share increased to $0.69 in Q4 2025, compared to $0.28 in Q4 2024 and adjusted diluted net earnings per share increased by 115.2% to $0.71 in Q4 2025, compared to $0.33 in Q4 2024.
- Real estate activity for Q4 2025 includes:
- Opening of 3 gross new stores in the United States under the Garage banner.
- 3 store closures in Canada under the Dynamite banner.
- Renovation or relocation of stores: 2 in Canada under both banners.
Fiscal 2025 Highlights
- Revenue increased by 36.7% to $1,310.2 million in Fiscal 2025, compared to $958.5 million in Fiscal 2024.
- Comparable store sales growth of 26.7% (23.8% on a constant currency basis) in Fiscal 2025, over and above comparable store sales growth of 12.3% in Fiscal 2024.
- Retail sales per square foot increased by 29.7% compared to Fiscal 2024, reaching $952 in Fiscal 2025.
- Gross margin expanded by 100 basis points to 63.8% in Fiscal 2025 compared to 62.8% in Fiscal 2024.
- SG&A increased to $364.0 million in Fiscal 2025, compared to $313.2 million in Fiscal 2024, and adjusted SG&A as a percentage of sales decreased by 390 basis points to 27.3% from 31.2% over the same period in Fiscal 2024.
- Operating income increased by 78.0% to $377.7 million in Fiscal 2025, compared to $212.2 million in Fiscal 2024.
- Adjusted EBITDA increased by 57.6% to $477.9 million in Fiscal 2025, representing an adjusted EBITDA margin of 36.5%, compared to 31.6% for the same period in Fiscal 2024.
- Diluted net earnings per share increased to $2.20 in Fiscal 2025, compared to $1.25 in Fiscal 2024 and adjusted diluted net earnings per share increased by 65.4% to $2.25 in Fiscal 2025, compared to $1.36 in Fiscal 2024.
- Real estate activity for Fiscal 2025 includes:
- Opening of 20 gross new stores in the United States under the Garage banner.
- 11 store closures: 1 in the United States under the Dynamite banner and 10 in Canada under both banners.
- Renovation or relocation of 13 stores: 9 in Canada under both banners and 4 in the United States under the Garage banner.
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