EarningsQ2 2026 Earnings Report
GRGDF Q2 2026 EPS Results
Actual EPS$0.68
Consensus EPS$0.57
Beat/MissBeat by +$0.11
One Year Ago EPS$0.40
GRGDF Q2 2026 Revenue Results
Actual Revenue$300.60M
Expected Revenue$285.01M
Beat/MissBeat by +$15.59M
YoY Revenue Growth+29.78%
Earnings Announcement Details
QuarterQ2 2026
Date09/10/2026
TimeBefore Open
Conference CallThursday, September 10, 2026
GRGDF Upcoming Earnings
Groupe Dynamite Inc.'s next earnings date is estimated for December 22, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Management reported broad-based revenue, profitability, earnings, cash flow, productivity, and customer-growth improvements, raised all three guidance metrics, and emphasized continued U.S. and international expansion. The main challenges were softer Canadian performance, the Canadian assortment transition, fuel inflation, and tougher second-half comparisons, but these issues were presented alongside raised guidance and continued operating momentum.Company Guidance
Strong Q2 Revenue Growth
Total revenue increased 29.8% year over year to $423.6 million. Brick-and-mortar comparable store sales grew 10.3%, or 12.3% on a constant currency basis, with the two-year comparable sales stack reaching 38.9%.
Significant U.S. Revenue Growth
United States revenue increased 52.2% to $271.6 million. Management said the U.S. has substantially lower penetration, significant investment-grade real estate white space, and continued runway for Garage.
International Expansion Momentum
The UK contributed $6.9 million of revenue in Q2. The company opened 7 stores across the U.S. and UK, including Bluewater Shopping Centre and Oxford Street, where early results were described as very encouraging.
Store Productivity Improvement
Sales per square foot reached $1.06 thousand, up 28.9% year over year. Management emphasized a strategy of operating better stores in better locations rather than simply operating more stores.
Digital Revenue Growth and Global Reach
eCommerce revenue increased 31.5% to $61.4 million, supported by growth in traffic and conversion. Trailing 12-month online penetration increased from 17.5% to 18.5%, and shipping was expanded to 9 additional countries across Europe and Australia.
Brand Premiumization and Higher AUR
Average unit retail has roughly doubled since 2019. Management attributed the increase to product mix, U.S. geographic mix, and the real estate strategy, describing the change as brand elevation and increased brand equity rather than simply charging more for the same products.
Strong Product and Customer Engagement
Garage's off-duty lifestyle assortment continued to perform strongly, including the Wild Tempo campaign with Hailey Bieber and the customer-requested Green Envy drop. Dynamite delivered strong momentum led by dresses and culturally relevant brand activations.
Newness Improved Q2 Momentum
Management identified an opportunity for more newness early in the quarter, adjusted product and season quickly, and said sales strengthened throughout Q2. The Green Envy product response was cited as an example of the operating model responding to customer signals in real time.
Customer Base and Lifetime Value Expansion
Transactions grew in both stores and online, the active customer base expanded year over year, and management reported stronger retention, increasing value per customer, and growth in average customer lifetime value across channels.
Gross Profit and Margin Expansion
Gross profit increased 40.5% to $291.6 million, while gross margin expanded 520 basis points to 68.8%. Management cited disciplined initial markup and pricing, limited reliance on markdowns, and logistics efficiency from the U.S. distribution center as contributors, while noting that most of the year-over-year improvement reflected lapping elevated tariffs from the first half of last year.
Full-Price Selling and Inventory Efficiency
Approximately 95% of gross sales were generated at full price. Inventory turns improved to 7.72x from 7.25x last year, and the company chased more than half of its receipts in season.
Operating Leverage and Record Adjusted EBITDA Margin
SG&A increased 21.8% to $106.8 million, but adjusted SG&A as a percentage of sales decreased 210 basis points to 24.6% from 26.7%. Operating income increased 60.5% to $156.2 million, adjusted EBITDA increased 55.9% to $187.9 million, and adjusted EBITDA margin reached 44.3%, the highest since the company began reporting under IFRS.
Strong Earnings Growth
Net earnings increased 77.5% to $113.4 million. Adjusted net earnings increased 68.1% to $108.9 million, and adjusted diluted earnings per share increased 68.7% from $0.57 to $0.96.
Robust Free Cash Flow and Balance Sheet
Free cash flow increased to $109.5 million from $72.6 million last year. Net leverage was 0.89x, cash was $31.9 million, and $312 million was available under credit facilities. The company repaid the $20 million drawn at the end of Q1 and extended its credit agreement by two years to May 2030.
Improved Capital Efficiency
Return on assets increased to 38.9% from 24.1% last year, while return on capital employed increased to 73.5% from 45% in the same quarter last year.
Share Repurchases
During Q2, the company repurchased 994 thousand shares under its NCIB at an average price of $63.50, for approximately $63.1 million.
Raised Fiscal 2026 Guidance
Total revenue growth guidance was raised to 25% to 27% from 22% to 25%. Brick-and-mortar comparable sales guidance was raised to 12% to 14%, with second-half comparable sales implied at 9.5% to 13%. Adjusted EBITDA margin guidance was increased to 39.5% to 40.5% from 38.25% to 39.5%.
Store Expansion Plan and Long-Term Runway
The company expects 24 to 26 openings in fiscal 2026, including 5 total in the UK, with the cadence weighted toward the back half of 2026. It has established a target of 350 stores by the end of fiscal 2028 and identified significant opportunity beyond 2028 in the U.S. and internationally.
Higher-Quality Real Estate Network
Investment-grade tier 1 through 3 real estate represented approximately 72% of sales, compared with roughly 28% in 2017. Investment-grade locations represented 57% of stores, and the company expects that percentage to reach 70% of stores within its 350-store fiscal 2028 target.
U.S. Distribution Center Fully Ramped
The U.S. distribution center was described as fully ramped, reducing last-mile friction, moving inventory closer to demand, and contributing to expected incremental gross-margin efficiency in the second half.
Ongoing Digital and Omnichannel Investment
The company launched headless commerce on its app and in the UK, with a North American launch planned for the current month. Henry Spear joined as chief customer officer with a mandate focused on personalization, removing friction, and increasing customer lifetime value across digital and omnichannel.
Culture and Ownership Mindset
Management credited the company's people, culture, shared values, and employee ownership mindset with supporting resilience and rapid execution through supply-chain disruptions, tariffs, geopolitical uncertainty, and changing consumer behavior.
GRGDF Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed