Toronto, June 16, 2026, 13:09 EDT
- Groupe Dynamite dropped 33% to CA$49.83 during the session, after opening at CA$75.00.
- Groupe Dynamite posted Q1 revenue of CA$310.6 million, up 37.0%. Adjusted diluted EPS hit CA$0.50, double a year ago.
- Next up is what management says to investors and if analysts change their forecasts following the new guidance.
Groupe Dynamite Inc. shares plunged Tuesday, down 33.06% to CA$49.83 by 12:53 p.m. EDT, even as the Montreal retailer posted a much stronger first quarter. The TSX-listed name, ticker GRGD, hit a session low of CA$48.33 earlier. Google Finance was showing a market cap of CA$5.65 billion at that price, with a price-to-earnings ratio of 22.62. P/E shows how much investors pay per dollar of profit.
Groupe Dynamite posted a strong quarter. The company reported revenue up 37.0% to CA$310.6 million for the 13 weeks ended May 2. Comparable store sales climbed 22.6%. Gross margin hit 67.4%, up 530 basis points. Adjusted EBITDA increased 71.3% to CA$114.4 million. CEO and board chair Andrew Lutfy said the quarter showed the “strength of our operating model.” President and COO Stacie Beaver said, “Q1 was a strong start to fiscal 2026.” Groupe Dynamite Investors
Valuation and guidance kept pressure on the stock. Management reaffirmed its fiscal 2026 revenue growth target at 22% to 25% and comparable-store-sales goal at 11% to 14%. The company nudged up adjusted EBITDA margin guidance to 38.25% to 39.50%. It also cut expected net new store openings to 8 to 10, down from 10 to 12. Free cash flow fell hard to CA$4.0 million, compared to CA$41.6 million a year ago. The company pointed to heavier tax payments. Net leverage increased to 1.01 times, up from 0.92. With shares that have hit CA$98.88 in the last year, those results set off some profit taking after big headline numbers.
The bull story holds up. Groupe Dynamite is one of the few apparel retailers showing growth right now. Online revenue jumped 35.7% to CA$50.6 million. Inventory turnover is better. The company is pushing into the U.K. after Canada and the U.S. Google Finance lists nine analyst calls on GRGD in the past three months, all Buy, average target CA$107.89. Those numbers may not yet factor in Tuesday’s drop.
Bearish investors say hype could be ahead of results. Fashion retail is tied to trends, and the company itself listed risks like tariffs, store footprint, U.K. rollout, lease terms, weather, and consumer demand. In April, a company linked to Andrew Lutfy sold shares, adding to supply pressure; Groupe Dynamite said that secondary sold 2.7 million subordinate voting shares at CA$93 and the company didn’t get the proceeds.
GRGD has fallen from its highs near CA$90, making it look a bit more appealing, but the stock is still not obviously cheap and remains risky. Shares could bounce if investors warm up to its margin story or think growth prospects back up the valuation. But if free cash flow, cash levels, or store counts miss, pressure could continue. Next up is the company’s post-earnings investor call plus any analyst moves that result. MarketScreener shows a shareholder and analyst presentation set for 1:30 p.m. EDT Tuesday.
