Canada's Groupe Dynamite Q2 revenue beats on contributions from new stores

Groupe Dynamite

10/09/2026 12:15

Overview
Canada women's fashion retailer's fiscal Q2 revenue grew 29.8%, beating analyst expectations
Adjusted EPS for fiscal Q2 beat analyst expectations
Company raised fiscal 2026 guidance for comparable store sales, revenue and adjusted EBITDA margin

Outlook
Groupe Dynamite raises fiscal 2026 comparable store sales growth guidance to 12%-14%
Company now expects fiscal 2026 total revenue growth of 25%-27%
Groupe Dynamite sees fiscal 2026 adjusted EBITDA margin at 39.5%-40.5%

Result Drivers
SALES GROWTH DRIVERS - Co said revenue growth was driven by a 10.3% rise in comparable store sales and contributions from new stores
GROSS MARGIN EXPANSION - Gross margin rose due to lower tariffs, controlled merchandise cost increases and lower logistics costs
INVENTORY MANAGEMENT - Improved inventory turnover and agile product development contributed to results

Company press release: ID:nCNW9Hf5la

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$423.64 mln
C$401.40 mln (11 Analysts)
Q2 Adjusted EPS
Beat
C$0.96
C$0.80 (12 Analysts)
Q2 comparable store sales Growth
 
10.30%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
Wall Street's median 12-month price target for GROUPE DYNAMITE INC. is C$90.00, about 58.3% above its September 9 closing price of C$56.87

Reuters Recommended Reads
Sept 9 - Women's apparel retailer J.Jill beats Q2 profit on tariff refund
Sept 9 - American Eagle Outfitters sees flat gross margin, higher costs in Q3 after tariff-boosted quarter
Sept 9 - Footwear retailer Caleres' Q2 sales beat estimates on gains across brands

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)