Apparel retailer Groupe Dynamite Inc., with brands DYNAMITE and GARAGE, reported Tuesday its financial results for the fiscal year 2026’s first quarter ended May 2, 2026, with revenue surging to more than $310 million, representing growth of 37% year-over-year.
“Our first quarter results demonstrate the strength of our operating model and our ability to deliver profitable growth. Comparable store sales increased 22.6%, gross margin reached a four-year high, and adjusted EBITDA margin expanded to 36.8% of revenue, positioning ourselves alongside the world’s most profitable fashion houses. We continue to strive to remain a highly productive specialty retailer with strong brands, exceptional unit economics, disciplined inventory management, attractive returns on capital, and a growth engine we have built over decades that continues to scale profitably,” said Andrew Lutfy, Chief Executive Officer and Chair of the Board.Â
“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. Most importantly, we continue to see strong customer engagement across both brands, reflected in growth in our active customer base and increasing customer lifetime value,” added Stacie Beaver, President and Chief Operating Officer.
Fiscal 2026 First Quarter Highlights
- Revenue increased by 37.0% to $310.6 million in Q1 2026, compared to $226.7 million in Q1 2025.
- Comparable store sales growth of 22.6% (24.7% on a constant currency basis in Q1 2026, over and above comparable store sales growth of 13.0% in Q1 2025.
- Retail sales per square foot increased by 32.4% compared to Q1 2025, reaching $1,001 in Q1 2026.
- Gross margin expanded by 530 basis points to 67.4% in Q1 2026 compared to 62.1% in Q1 2025.
- SG&A increased to $102.2 million in Q1 2026, compared to $74.7 million in Q1 2025, and adjusted SG&A as a percentage of sales decreased by 190 basis points to 30.5% from 32.4% over the same period in Q1 2025.
- Operating income increased by 80.1% to $79.8 million in Q1 2026, compared to $44.3 million in Q1 2025.
- Adjusted EBITDAÂ increased by 71.3% to $114.4 million in Q1 2026, representing an adjusted EBITDA margin of 36.8%, compared to 29.5% for the same period in Q1 2025.
- Diluted net earnings per share increased to $0.45 in Q1 2026, compared to $0.24 in Q1 2025 and adjusted diluted net earnings per share  increased by 100.0% to $0.50 in Q1 2026, compared to $0.25 in Q1 2025.
- Real estate activity for Q1 2026 includes:
- Opening of 5 gross new stores: 3 in the United States and 2 in the United Kingdom, both under the Garage banner.
- 5 store closures: 4 in Canada under the Dynamite banner and 1 in the United States under the Garage banner.
- Renovation or relocation of stores: 3 in Canada under the Garage banner.
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