Groupe Dynamite Inc. reported Thursday its financial results for the fiscal year 2026’s second quarter ended August 1, 2026.
Total revenue for Q2 2026 increased by $97.2 million or 29.8% to $423.6 million compared to Q2 2025. This growth was due to a 10.3% increase in comparable store sales (12.3% on a constant currency basis) and contributions from new stores. Online revenue for Q2 2026 was $61.4 million, representing an increase of $14.7 million or 31.5% compared to Q2 2025, it said.
Net earnings for Q2 2026 increased by $49.5 million or 77.5% compared to Q2 2025. This growth was mainly driven by higher revenue, which led to increased gross profit, partially offset by higher SG&A and increased depreciation and amortization. Net earnings also benefited from a $9.4 million recovery of tariff refund claims related to International Emergency Economic Powers Act tariff refunds under U.S. Customs and Border Protection’s refund process. Adjusted net earnings for Q2 2026, which exclude the after-tax impact of the $9.4 million recovery related to tariff refund claims, increased by $44.1 million or 68.1% compared to Q2 2025, added the company, which operates retailers DYNAMITE and GARAGE.
“Our second quarter results demonstrate the strength of our luxury-inspired operating model and our ability to continue delivering profitable growth. Comparable store sales grew 10.3%, total revenue increased 29.8%, gross margin expanded to 68.8% and adjusted EBITDA margin reached 44.3%, in all cases excluding the impact of duty refunds. The continued expansion of gross margin and adjusted EBITDA demonstrates that the economics of our model are strengthening as we scale. We have built highly coveted global brands with exceptional unit economics, disciplined inventory management and attractive returns on capital, supported by a growth engine we have engineered over decades that continues to generate profitable growth. We remain focused on creating long-term value as we scale Groupe Dynamite with discipline,” said Andrew Lutfy, Chief Executive Officer and Chair of the Board.Â
“Q2 demonstrated the agility of our operating model and the strength of our execution. Combined with strong brand heat across GARAGE and DYNAMITE, this helped us build momentum throughout the quarter and deliver strong sales performance. Early in the quarter, we identified an opportunity to accelerate newness within our assortments, and the speed of our luxury-inspired model allowed us to respond quickly and make targeted in-season adjustments. This enabled us to deliver products that resonated strongly with our customers and reinforced their connection with our brands. That customer response is translating into increasing productivity across our store network, with sales per square foot continuing to improve as we optimize our fleet and elevate the in-store experience. At the same time, we are strengthening the infrastructure supporting our growth, with our U.S. distribution center delivering greater efficiency as we scale. Â We continue to expand our presence across the United States and internationally, including the UK, and are extending our reach through shipping to nine additional countries,” added Stacie Beaver, President and Chief Operating Officer.
Fiscal 2026 Second Quarter Highlights
- Revenue increased by 29.8% to $423.6 million in Q2 2026, compared to $326.4 million in Q2 2025.
- Comparable store sales growth of 10.3% (12.3% on a constant currency basis(1)) in Q2Â 2026, compared to comparable store sales growth of 28.6% (25.7% on a constant currency basis) in Q2 2025.
- Retail sales per square foot increased by 28.9% compared to Q2 2025, reaching $1,056 in Q2 2026.
- Gross margin expanded by 520 basis points to 68.8% in Q2 2026 compared to 63.6% in Q2 2025.
- SG&A increased to $106.8 million in Q2 2026, compared to $87.7 million in Q2 2025, and adjusted SG&A as a percentage of sales decreased by 210 basis points to 24.6% from 26.7% over the same period in Q2 2025.
- Operating income increased by 60.5% to $156.2 million in Q2 2026, compared to $97.3 million in Q2 2025.
- Adjusted EBITDAÂ increased by 55.9% to $187.9 million in Q2 2026, representing an adjusted EBITDA margin of 44.3%, compared to 36.9% for the same period in Q2 2025.
- Diluted net earnings per share increased to $1.00 in Q2 2026, compared to $0.56 in Q2 2025 and adjusted diluted net earnings per share increased by 68.7% to $0.96 in Q2 2026, compared to $0.57 in Q2 2025.
- Real estate activity for Q2 2026 includes:
- Opening of 7 new stores: 6 in the United States and 1 in the United Kingdom, both under the GARAGE banner.
- Renovation or relocation of stores: 4 in Canada and 3 in the United States, both under the GARAGE banner.
- 7 store closures:Â 6 in Canada, including 4 under the GARAGE banner and 2 under the DYNAMITE banner, and 1 in the United States under the DYNAMITE banner.
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