Groupe Dynamite (GRGD) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 37% year-over-year to CAD 310.6 million, with comparable store sales up 22.6% and strong performance across Garage and Dynamite brands.

• Gross margin reached a four-year high at 67.4%, and adjusted EBITDA margin expanded to 36.8%, reflecting operational leverage and disciplined inventory management.

• Growth was driven by disciplined capital allocation, brand elevation, and expansion in the U.S. and U.K. markets.

• E-commerce sales grew 35.7% in Q1 2026, supported by digital investments and improved customer experience.

• Net earnings increased by 89.4% to CAD 51.7 million, with adjusted net earnings up 101.8% to CAD 57.3 million.

Financial highlights

• Total revenue increased 37% to CAD 310.6 million, with online revenue up 35.7% to CAD 50.6 million.

• Gross profit rose 48.8% to CAD 209.3 million, with gross margin up 530 basis points to 67.4%.

• Operating income increased 80.1% to CAD 79.8 million; adjusted EBITDA rose 71.3% to CAD 114.4 million.

• Net earnings grew 89.4% to CAD 51.7 million; adjusted net earnings up 101.8% to CAD 57.3 million.

• Adjusted diluted EPS doubled to CAD 0.50 per share.

Outlook and guidance

• Fiscal 2026 guidance: comparable store sales growth of 11%-14%, total revenue growth of 22%-25%, and adjusted EBITDA margin of 38.25%-39.5%.

• Expecting 24-26 gross new store openings, including five in the U.K., with net new openings revised to 8-10.

• CapEx guidance maintained at CAD 100-110 million, focused on growth initiatives and digital investments.