Groupe Dynamite Inc.‘s CEO says the company’s push into more premium markets is “a bet that’s paying off” because it’s netting the retailer a more resilient crop of customers.
The Montreal-based company has been opening new stores in top U.S. shopping districts and on London’s trendy Oxford Street, which have brought in a wave of customers Andrew Lutfy considers to be in the top 20 per cent of the population because they own homes or have equity portfolios.
“It’s a self-fulfilling prophecy,” he told analysts on a conference call Tuesday. “Because we’re in these markets, this consumer, at least in our experience, seems to have a fair amount, a reasonable amount of liquidity.”
That liquidity means when these shoppers visit Dynamite or its sister Garage stores “there does not seem to be much resistance in terms of price.”
However, in other markets, where shoppers are more likely to be renters without equity or assets, customers are “feeling the pressure with inflation and a bit of a softer labour market,” he said.
His observations indicate Dynamite’s shift toward more prized markets and properties has been worthwhile for the brand, which has spent recent years contending with inflation-pummeled customers and constantly changing tariffs.
When the company went public in November 2024, most of its stores were in locations rated tier four and tier five, which Dynamite’s financial documents say usually comprise shopping centres.
“Now that has shifted to the opposite,” said Jean-Philippe Lachance, Dynamite’s chief financial officer on the same call as Lutfy.
Almost 60 per cent of the company’s stores range from tiers one to three — the higher end of the designations Dynamite gives properties.
“As we progress through time, this split will become even better,” Lachance said.
“Certainly, the goal is for all openings to be in those amazing tier one, two and three centres, and whichever store closures that may potentially happen next year would predominantly be tier four and tier five locations.”
His remarks came just after the firm revealed its third-quarter profit and revenue rose compared with a year ago as its comparable-store sales climbed 31.6 per cent.
The clothing retailer said it earned $81.5 million or 71 cents per diluted share for the quarter ended Nov. 1 compared with a profit of $40.4 million or 38 cents per diluted share a year ago.
Revenue totalled $363 million, up from $258.8 million in the same quarter last year.
On an adjusted basis, Groupe Dynamite earned 72 cents per diluted share in its latest quarter, up from an adjusted profit of 41 cents per diluted share a year ago.
The numbers reflect that “most of our tariff related volatility (is) behind us” and the company has an “agile and well-engineered supply chain,” Lutfy said.
Looking forward, the company now expects 25.5 per cent to 27.5 per cent in comparable store sales growth for its 2025 financial year. The guidance is up from earlier expectations for between 17 per cent and 19 per cent.
Groupe Dynamite also raised its guidance for its adjusted EBITDA margin for the full year to between 35 per cent and 37 per cent, up from between 32 per cent and 33.5 per cent.
This report by The Canadian Press was first published Dec. 9, 2025.
Companies in this story: (TSX:GRGD)
