-- Delivered comparable store sales growth(1) of 10.3%, or 12.3% in constant
currency(1), representing a two-year comparable stack of 38.9% compared
with 35.6% in Q1 2026, and total revenue growth of 29.8%
-- Expanded gross margin(1)(2) to 68.8%, up 520 bps year-over-year,
reflecting the lapping of prior-year tariff impacts and logistics
efficiencies from the Company's US distribution center
-- Delivered adjusted EBITDA margin(1)(2) of 44.3%, our highest since we
began reporting under IFRS, and adjusted diluted EPS growth of 68.7%,
supported by a 210 bps improvement in adjusted SG&A margin(1) as revenue
scaled
-- Opened 7 GARAGE stores, 6 in the United States and 1 in the United
Kingdom, all in investment-grade locations. Retail sales per square
foot(1) for the chain up 28.9% to $1,056.
-- Raised Fiscal 2026 guidance: comparable store sales growth to 12% to 14%,
total revenue growth to 25% to 27% and adjusted EBITDA margin to 39.5% to
40.5%
MONTRÉAL, Sept. 10, 2026 /CNW/ -- Groupe Dynamite Inc. ("Groupe Dynamite" or the "Company") (TSX: GRGD) today reported its financial results for the fiscal year 2026's second quarter ended August 1, 2026.
"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.
"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. 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(3), compared to
$326.4 million in Q2 2025(3).
-- Comparable store sales growth of 10.3% (12.3% on a constant currency
basis(1)) in Q2 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(1) 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 EBITDA(1) 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
(1) 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: 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.
Ratios and Recent Developments
-- Inventory turnover (1) improved to 7.72x in Q2 2026, compared to 7.25x in
Q2 2025.
-- Net leverage ratio (1) was 0.89x in Q2 2026, up from 0.79x in Q2 2025.
-- Return on assets ("ROA") (1) improved to 38.9% in Q2 2026, compared to
24.1% in Q2 2025.
-- Return on capital employed ("ROCE") (1) reached 73.5% in Q2 2026,
compared to 45.0% in Q2 2025.
-- During the quarter, the Company repurchased 993,605 shares at an average
price of $63.50 for a total of approximately $63.1 million.
_________
Notes:
(1) Refer to "Non-IFRS Measures including Non-IFRS Financial
Measures, Non-IFRS Ratios, Supplementary Financial
Measures and Retail Industry Metrics" section of this
press release for further details concerning these
measures including definitions and reconciliations
of each non-IFRS financial measure to the relevant
reported IFRS financial measure. Non-IFRS financial
measures and non-IFRS ratios do not have a standardized
meaning under IFRS Accounting Standards, as issued
by the International Accounting Standards Board (IASB)
("IFRS Accounting Standards") which are used to prepare
the Company's financial statements and might not be
comparable to similar financial measures presented
by other entities.
(2) Excludes any impact from the recovery of tariff refund
claims.
(3) All references to "Q2 2026" are to the Company's 13-week
period ended August 1, 2026, to "Q2 2025" are to the
Company's 13-week period ended August 2, 2025; to
"Fiscal 2026" are to the Company's fiscal year ending
January 30, 2027: to "Fiscal 2025" are to the Company's
fiscal year ended January 31, 2026.
Outlook
The table below outlines the Company's revised financial annual guidance ranges for Fiscal 2026 replacing our previously disclosed guidance:
Revised Fiscal 2026 Prior Fiscal 2026
Guidance Guidance
Real estate activity(2) 24 to 26 new store 24 to 26 new store
openings openings
Comparable store sales 12.0% to 14.0% 11.0% to 14.0%
growth
Total revenue growth 25.0% to 27.0% 22.0% to 25.0%
Adjusted EBITDA margin 39.50% to 40.50% 38.25% to 39.50%
CAPEX $100.0 to $110.0 million $100.0 to $110.0 million
Our achievement of these targets is subject to several risks and uncertainties, including the following:(1)
-- Adverse effects from future policy or legislative changes, tariffs (in
addition to those currently in place) that may be imposed by the United
States, or retaliatory tariffs from other countries and the United
States.
-- Failing to successfully locate our stores in suitable locations and any
impairment of a store location, including any decrease in customer
traffic.
-- Failing to negotiate lease agreements for the store pipeline for Fiscal
2026, along with the risk of delays in construction activities beyond our
control, and substantial increases in occupancy costs.
-- Failing to successfully open and operate new stores in the United
Kingdom.
-- Failing to complete the renovations and relocations scheduled for Fiscal
2026, which is expected to be between approximately 10 to 15.
-- Achieving guidance numbers of comparable store sales or retail sales per
square foot.
-- Disruption of our strategic relationships with suppliers, impairing
open-to-buy visibility.
-- Failing to optimize merchandise, anticipate and respond to constantly
changing consumer demands and fashion trends.
-- Failing to protect and enhance our brands.
-- Failing to attract new customers, or retain existing customers, or to
maintain or increase sales to those customers.
-- Failing to actively manage product margins, including the implementation
of effective pricing strategies.
-- Obstacles to the ongoing implementation of in-store productivity
initiatives and the achievement of cost savings intended to improve
operating expenses.
-- Any material disruption in our information technology systems and
e-commerce business.
-- The occurrence of unusually adverse weather, particularly during peak
seasons.
-- Adverse changes in the general economic conditions and consumer spending
in Canada, the United States and other parts of the world.
___________
Note:
(1) The guidance ranges included in this section are forward-looking
statements within the meaning of applicable securities
laws, are based on assumptions that we believe to
be reasonable and are subject to several risks and
uncertainties, including the risks and uncertainties
set forth above as well as those incorporated by reference
in the "Forward-Looking Statements" section of this
press release.
(2) Beginning with Q2 2026, the Company has revised the
presentation of its real estate activity outlook to
report new store openings only, in order to provide
greater visibility into the pace of the Company's
store expansion activity, independently of store closures.
This change in presentation does not reflect a change
in the Company's underlying store opening or closure
expectations. The previously disclosed outlook for
net new store openings reflected expected gross new
store openings, net of anticipated store closures.
On a comparable basis, the Company's previously disclosed
outlook remains unchanged, with 24 to 26 gross new
store openings and 16 anticipated store closures,
resulting in 8 to 10 net new store openings.
Recent events
On September 9, 2026, the Second Amended and Restated Credit Agreement was further amended, extending the maturity date by two years to May 10, 2030.
Second Quarter Fiscal 2026 Financial Results
Revenue
Total revenue for Q2 2026 increased by $97.2 million or 29.8% 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.
Cost of sales and gross profit
Gross profit for Q2 2026 increased by $84.1 million or 40.5% compared to Q2 2025, with gross margin increasing by 520 basis points to 68.8%. This increase is attributable to the 29.8% revenue growth compared to the relatively lower increase in cost of sales of 11.1% which is due to lower tariffs, controlled merchandise cost increases and lower logistics costs.
Selling, general and administrative expenses
SG&A for Q2 2026 increased by $19.1 million or 21.8% compared to Q2 2025. This increase was primarily driven by the Company's growing scale and activities, leading to a $11.7 million increase in wages and salaries, including share-based compensation and their related benefits. Selling and marketing expenses increased by $4.8 million compared to Q2 2025, due to higher investment to support business growth. Administrative expenses also increased by $2.6 million compared to Q2 2025, reflecting higher operating costs, particularly related to investments in information technology and software. As a percentage of sales, SG&A decreased by 170 basis points from 26.9% in Q2 2025 to 25.2% in Q2 2026.
Operating income and adjusted EBITDA
Operating income for Q2 2026 increased by $58.9 million or 60.5% to reach $156.2 million compared to $97.3 million in Q2 2025. Similarly, adjusted EBITDA for Q2 2026 increased by $67.4 million or 55.9% to reach $187.9 million compared to $120.5 million in Q2 2025. The adjusted EBITDA margin improved by 740 basis points to 44.3% compared to 36.9% in Q2 2025. This performance results from the combination of both a 520 basis points improvement in gross margin and a reduction of 210 basis points in adjusted SG&A as a percentage of sales, which decreased to 24.6% in Q2 2026 from 26.7% in Q2 2025.
Net earnings and adjusted net earnings
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 ("IEEPA") tariff refunds under U.S. Customs and Border Protection's ("CBP") refund process. Adjusted net earnings(1) 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.
Working capital
As of August 1, 2026, we have maintained a strong inventory turnover ratio of 7.72x, compared to 7.25x as of August 2, 2025, with current assets of $203.5 million (including $31.9 million in cash) and current liabilities of $287.7 million. Inventory continues to be minimized through agile product development and strategic sourcing, driven by our high open-to-buy ratio.
Free cash flow
Free cash flow for Q2 2026 increased by $36.9 million to $109.5 million, up from $72.6 million in Q2 2025. This increase was due to higher net earnings, partially offset by a $15.6 million increase in CAPEX.
Net leverage ratio
The Company's net leverage ratio increased to 0.89x compared to 0.79x last year. This increase is primarily due to higher net debt, partially offset by higher adjusted EBITDA. At the end of Q2 2026, the Company has approximately $31.9 million in cash and a $312.0 million credit facility, providing flexibility to drive growth, invest in strategic initiatives, manage market volatility and return excess cash to shareholders.
Return metrics
ROA of 38.9% for Q2 2026 has increased from the ROA of 24.1% for Q2 2025. This improvement indicates a significant boost in the Company's ability to leverage its assets more effectively than in previous periods.
For Q2 2026, our ROCE reached 73.5%, compared to 45.0% in Q2 2025, highlighting the effectiveness of our recent strategies and investments. The slower growth of average capital employed compared to adjusted operating income reflects strong capital utilization, enabling the generation of operating income.
_______________
Note:
(1) Refer to "Non-IFRS Measures including Non-IFRS Financial
Measures, Non-IFRS Ratios, Supplementary Financial
Measures and Retail Industry Metrics" section of this
press release for further details concerning these
measures including definitions and reconciliations
of each non-IFRS financial measure to the relevant
reported IFRS financial measure. Non-IFRS financial
measures and non-IFRS ratios do not have a standardized
meaning under IFRS Accounting Standards, which are
used to prepare the Company's financial statements
and might not be comparable to similar financial measures
presented by other entities.
Selected Financial Information
13-week 26-week
periods ended periods ended
In thousands of August 1, August 2, 2025 August 1, 2026 August 2, 2025
Canadian 2026
dollars, except
per share
data and retail
sales per
square foot
$ $ $ $
Revenue 423,638 326,425 734,217 553,081
Cost of sales 132,075 118,944 233,375 204,889
Gross profit 291,563 207,481 500,842 348,192
Operating
expenses
Selling,
general and
administrative
expenses 106,780 87,669 208,999 162,360
Depreciation
and
amortization 28,878 22,637 56,106 43,936
Foreign
exchange
(gain) loss (321) (80) (334) 318
Total operating
expenses 135,337 110,226 264,771 206,614
Operating
income 156,226 97,255 236,071 141,578
Net financing
costs 10,127 7,225 19,354 14,043
Recovery of
tariff refund
claims (9,368) - (9,368) -
Earnings before
income taxes 155,467 90,030 226,085 127,535
Income taxes 42,067 26,145 61,005 36,314
Net earnings 113,400 63,885 165,080 91,221
Net earnings
per share
Basic $1.04 $0.59 $1.51 $0.85
Diluted $1.00 $0.56 $1.45 $0.80
Additional
financial
measures
Retail revenue 362,245 279,683 622,197 469,084
Comparable
store sales
growth(1) 10.3 % 28.6 % 15.2 % 21.8 %
Retail sales
per square
foot(1) $1,056 $820 $1,056 $820
Adjusted
EBITDA(1) 187,880 120,548 302,298 187,373
Adjusted net
earnings(1) 108,894 64,756 166,158 93,151
Adjusted net
earnings per
share(1)
Basic $1.00 $0.60 $1.52 $0.86
Diluted $0.96 $0.57 $1.46 $0.82
Gross margin(1) 68.8 % 63.6 % 68.2 % 63.0 %
SG&A as a
percentage of
sales(1) 25.2 % 26.9 % 28.5 % 29.4 %
Adjusted SG&A
as a
percentage of
sales(1) 24.6 % 26.7 % 27.1 % 29.0 %
Adjusted EBITDA
margin(1) 44.3 % 36.9 % 41.2 % 33.9 %
Ratios and
other metrics:
ROA(1) 38.9 % 24.1 % 38.9 % 24.1 %
ROCE(1) 73.5 % 45.0 % 73.5 % 45.0 %
Net leverage
ratio(1) 0.89 0.79 0.89 0.79
Free cash
flow(1) 109,508 72,618 113,475 114,242
Inventory
turnover(1) 7.72 7.25 7.72 7.25
CAPEX(1) 26,826 11,151 52,924 32,222
Number of
stores(2) 307 299 307 299
As at
In thousands of Canadian dollars Aug 1, 2026 Jan 31, 2026 Feb 1, 2025
$ $ $
Cash 31,918 82,478 74,195
Inventories 72,718 51,219 44,952
Total current assets 203,542 206,789 161,568
Property and equipment 206,996 164,675 107,465
Right-of-use assets 472,620 415,036 330,105
Total assets 905,476 805,888 618,637
Long-term portion of lease
liabilities 500,761 444,280 340,102
Total non-current liabilities 505,917 450,238 340,102
Total liabilities 793,651 711,961 477,323
Total shareholders' equity 111,825 93,927 141,314
Total debt(1) 557,498 477,248 372,581
Net debt(1) 525,580 394,770 298,386
__________
Notes:
(1) Refer to "Non-IFRS Measures including Non-IFRS Financial
Measures, Non-IFRS Ratios, Supplementary Financial
Measures and Retail Industry Metrics" section of this
Press Release for further details concerning these
measures including definitions and reconciliations
of each non-IFRS financial measure to the relevant
reported IFRS financial measure. Non-IFRS financial
measures and non-IFRS ratios do not have a standardized
meaning under IFRS Accounting Standards, which are
used to prepare the Company's financial statements
and might not be comparable to similar financial measures
presented by other entities.
(2) Number of stores is as at end of period.
Second quarter results conference call
Groupe Dynamite will hold a conference call to discuss its Q2 2026 results today, September 10, 2026, at 10:30 a.m. (ET), followed by a question-and-answer period for financial analysts. Other interested parties may participate in the call on a listen-only basis via live audio webcast, accessible through the "Events & Presentations" tab on Groupe Dynamite's website at https://investors.groupedynamite.com/.
About Groupe Dynamite Inc.
Groupe Dynamite Inc. (TSX: GRGD) is a growth-oriented company striving for excellence in the fashion industry. Operating retail stores and digital experiences under two complementary and spirited banners--GARAGE and DYNAMITE--we offer a wide range of women's fashion apparel, catering to the needs of Generation Z and Millennials. With a growing international presence, we operate across Canada and the United States, and more recently expanded into the United Kingdom, advancing our global footprint. With leading key operating metrics and a commitment to innovation and disciplined execution, we are proud to continue our ambitious growth plans. Guided by our mission, "Empowering YOU to be YOU", we are a values-led, inclusive organization committed to inspiring confidence and self-expression. Proudly rooted in the chic and vibrant city of Montréal, our culture, values and distinct brands position us to shape the future of fashion while attracting and inspiring the next generation of leaders and creators. Our ownership-mentality and entrepreneurial mindset is reflected in our Shared Success Program, through which all our 7,200 employees have ownership exposure. This alignment of interests and values fosters collaboration, fuels innovation, and creates meaningful long-term value for our team and stakeholders alike.
Non-IFRS Measures including Non-IFRS Financial Measures, Non-IFRS Ratios, Supplementary Financial Measures and Retail Industry Metrics
This press release makes reference to certain non-IFRS measures, including non-IFRS financial measures, non-IFRS ratios, supplementary financial measures and certain retail industry metrics. These measures are not recognized measures under IFRS Accounting Standards and do not have a standardized meaning prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS Accounting Standards measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS Accounting Standards. In this press release, we use non-IFRS financial measures including "EBITDA", "adjusted EBITDA", "adjusted EBITDA (after rent equivalent expense)", "free cash flow", "adjusted net earnings" and "adjusted net earnings per share" and non-IFRS ratios including "EBITDA margin", "adjusted EBITDA margin", "adjusted EBITDA (after rent equivalent expense) margin", "adjusted SG&A as a percentage of sales", "comparable store sales on a constant currency basis", "return on assets", "return on capital employed" and "net leverage ratio". We also use supplementary financial measures including "comparable store sales", "inventory turnover", "retail sales per square foot", "gross margin", "SG&A as a percentage of sales", "CAPEX" and other operating metrics commonly used in the retail industry.
Additional details for these non-IFRS and other financial measures, which are incorporated by reference herein, can be found in our Management's Discussion & Analysis for Q2 2026 under the section "Non-IFRS Measures including Non-IFRS Financial Measures, Non-IFRS Ratios, Supplementary Financial Measures and Retail Industry Metrics", which is posted on our website at https://groupedynamite.com/, and filed on SEDAR+ at www.sedarplus.ca. Reconciliations for each non-IFRS financial measure to the most directly comparable IFRS Accounting Standards measures are provided below.
These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.
Non-IFRS Financial Measures and Non-IFRS Ratios
Earnings before interests, taxes, depreciation, amortization ("EBITDA"), adjusted EBITDA and adjusted EBITDA (after rent equivalent expense)
EBITDA margin, adjusted EBITDA margin and adjusted EBITDA (after rent equivalent expense) margin
13-week 26-week
periods ended periods ended
In thousands of Canadian dollars Aug 1, Aug 2, Aug 1, Aug 2,
2026 2025 2026 2025
$ $ $ $
Operating income 156,226 97,255 236,071 141,578
Depreciation and amortization 28,878 22,637 56,106 43,936
EBITDA 185,104 119,892 292,177 185,514
EBITDA margin 43.7 % 36.7 % 39.8 % 33.5 %
13-week 26-week
periods ended periods ended
In thousands of Canadian dollars Aug 1, Aug 2, Aug 1, Aug 2,
2026 2025 2026 2025
EBITDA $185,104 $119,892 $292,177 $185,514
Adjustments to EBITDA
Stock-based compensation expense(1) 2,776 1,469 10,225 2,129
Gain on lease modification - (813) (104) (813)
Professional fees related to the IPO - - - 543
Total adjustments 2,776 656 10,121 1,859
Adjusted EBITDA 187,880 120,548 302,298 187,373
Adjusted EBITDA margin 44.3 % 36.9 % 41.2 % 33.9 %
(1) This excludes the expenses related to cash-settled
deferred share units granted under the Shared Success
Program, as well as those paid in lieu of bonus under
the omnibus equity incentive plan.
13-week 26-week
periods ended periods ended
In thousands of Canadian dollars Aug 1, Aug 2, Aug 1, Aug 2,
2026 2025 2026 2025
$ $ $ $
Adjusted EBITDA 187,880 120,548 302,298 187,373
Depreciation of right-of-use assets (18,131) (15,005) (35,695) (29,464)
Interest expense on lease liabilities (8,385) (6,973) (16,507) (13,498)
Adjusted EBITDA (After Rent Equivalent
Expense) 161,364 98,570 250,096 144,411
Adjusted EBITDA (After Rent Equivalent
Expense) margin 38.1 % 30.2 % 34.1 % 26.1 %
Adjusted SG&A as a percentage of sales
13-week 26-week
periods ended periods ended
In thousands of Canadian dollars Aug 1, Aug 2, Aug 1, Aug 2,
2026 2025 2026 2025
$ $ $ $
SG&A 106,780 87,669 208,999 162,360
Adjustments to SG&A
Stock-based compensation expense(1) 2,776 1,469 10,225 2,129
Gain on lease modifications - (813) (104) (813)
Professional fees related to the IPO - - - 543
Total adjustments 2,776 656 10,121 1,859
Adjusted SG&A 104,004 87,013 198,878 160,501
Adjusted SG&A as a percentage of sales 24.6 % 26.7 % 27.1 % 29.0 %
(1) This excludes the expenses related to cash-settled
deferred share units granted under the Shared Success
Program, as well as those paid in lieu of bonus under
the Omnibus Plan.
Adjusted net earnings
13-week 26-week
periods ended periods ended
In thousands of Canadian dollars, exce Aug 1, Aug 2, Aug 1, Aug 2,
pt per share
data 2026 2025 2026 2025
$ $ $ $
Net earnings 113,400 63,885 165,080 91,221
Adjustments to net earnings
Stock-based compensation expense(1) 2,776 1,469 10,225 2,129
Gain on lease modifications - (813) (104) (813)
Professional fees related to the IPO - - - 543
Recovery of tariff refund claims (9,368) - (9,368) -
Income tax expense on taxable items
above 2,086 215 325 71
Total adjustments (4,506) 871 1,078 1,930
Adjusted net earnings 108,894 64,756 166,158 93,151
Adjusted net earnings per share
Basic $1.00 $0.60 $1.52 $0.86
Diluted $0.96 $0.57 $1.46 $0.82
(1) This excludes the expenses related to cash-settled
deferred share units granted under the Shared Success
Program, as well as those paid in lieu of bonus under
the Omnibus Plan.
Comparable store sales
13-week periods ended
In thousands of Canadian dollars Aug 1, Aug 2, Variance Aug 2, Aug 3, Variance
2026 2025 2025 2024
Retail revenue 362,245 279,683 29.5 % 279,683 203,741 37.3 %
Comparable store sales on a
constant currency basis 12.3 % 25.7 %
Foreign currency exchange impact (2.0 %) 2.9 %
Comparable store sales 10.3 % 28.6 %
Non-comparable store sales and
others 19.2 % 8.7 %
Return on assets or ROA
52-week periods ended
In thousands of Canadian dollars August 1, 2026 August 2, 2025
$ $
Adjusted net earnings 330,813 173,410
Average total assets 850,505 719,992
Return on assets 38.9 % 24.1 %
Return on capital employed or ROCE
52-week periods ended
In thousands of Canadian dollars August 1, 2026 August 2, 2025
$ $
Adjusted EBITDA 592,775 354,036
Depreciation and amortization (106,262) (86,213)
Adjusted EBITDA reduced by depreciation and
amortization 486,513 267,823
Capital employed
Average total assets 850,505 719,992
- Average total current liabilities (233,676) (164,182)
+ Average short-term portion of long-term debt - 9,916
+ Average short-term portion of lease
liabilities 45,415 28,998
Average total capital employed 662,244 594,724
Return on capital employed 73.5 % 45.0 %
Free cash flow
13-week 26-week
periods ended periods ended
In thousands of Canadian dollars Aug 1, Aug 2, Aug 1, Aug 2,
2026 2025 2026 2025
$ $ $ $
Cash from operating activities 136,334 83,769 166,399 146,464
Additions to property and
equipment (23,450) (8,400) (46,223) (27,174)
Additions to intangible assets (3,376) (2,751) (6,701) (5,048)
Free cash flow 109,508 72,618 113,475 114,242
Net leverage ratio
52-week periods ended
In thousands of Canadian dollars August 1, 2026 August 2, 2025
$ $
Net debt
Lease liabilities including current portion 557,498 431,061
- Cash (31,918) (151,221)
Total net debt 525,580 279,840
Adjusted EBITDA 592,775 354,036
Net leverage ratio 0.89 0.79
Forward-Looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information in this press release may relate to our future financial outlook (including our revised guidance for Fiscal 2026) and anticipated events or results and may include (without limitation) statements relating to: our ability to raise performance and enhance long-term shareholder value, strengthen brand experiences and positioning, raise brand awareness, and deepen our community connections; the continued ramp-up of our U.S. distribution center and its expected operational impact; our ability to continue creating accessible fashion and delivering on-trend products; the planned expansion and optimization of our store footprint and the achievements that can be derived therefrom; our expectations regarding the reinvestment in our business, the return of excess cash to shareholders, our financial performance, financial position and use of liquidity; and our future growth rates and growth strategies. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding possible future events or circumstances.
Forward-looking information is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Our assumptions underpinning forward-looking information include, but are not limited to, the following: expected short-, medium- and long-term discretionary spending and overall economic trends; successfully maintaining and enhancing our brands; marketing efforts, store renovations and store expansions will be successful and drive our revenue; maintaining our supplier relationships and a steady, cost-effective supply of inventories; successfully managing expenses and driving gross margin improvements; growing our e-commerce business and making headway in our international expansion efforts; successfully retaining key personnel including our Chief Executive Officer; the absence of material changes to taxes, duties, tariffs and interest rates; the absence of further material disruptions in the international trade; the economy generally; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated, intended or implied.
Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Forward-looking information is also subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Risks and uncertainties are discussed in the "Risk Factors" section of the Company's annual information form for Fiscal 2025 (the "AIF") which is incorporated by reference into this document. A copy of the AIF and the Company's other publicly filed documents can be accessed under the Company's profile on the System for Electronic Document Analysis and Retrieval ("SEDAR+") at www.sedarplus.ca. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The risks,
uncertainties, opinions, estimates and assumptions referred to elsewhere in this press release should be considered carefully by readers. Accordingly, readers should not place undue reliance on forward-looking information. To the extent any forward-looking information in this press release constitutes future-oriented financial information or financial outlook, within the meaning of applicable Canadian securities legislation, such information is being provided to demonstrate the potential of the Company and readers are cautioned that this information may not be appropriate for any other purpose. Future-oriented financial information and financial outlook, as with forward-looking information generally, are based on current assumptions and subject to risks, uncertainties and other factors. Furthermore, the forward-looking information contained in this press release represents our expectations as of the date of this press release (or as of the date it is otherwise stated to be made) and is subject to change after such date. We disclaim any intention, obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable Canadian securities legislation. All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.
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