Groupe Dynamite Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Stephen MacLeod - Bank of Montreal - Analyst : Thank you. Good morning, everyone, and congrats on a very strong quarter. Lots of great color on the call, so thank you. I just had a couple of questions. Just wondering if you think about the sort of Q3 comps and maybe what you've seen on a Q4 to date basis. Can you talk about -- I know you mentioned it in your prepared remarks, but just maybe a little bit more color around the contribution from traffic versus price into those comps?

Question: Stephen MacLeod - Bank of Montreal - Analyst : Right, okay, that's great, and then thanks for the initial thoughts on fiscal '26. I think that's helpful. Just as you think about kind of the store base now and heading into '26 and I guess, potentially '27, '28 as well, can you just give a sort of a snapshot of where you sit with respect to the number of stores you have in or percentage of fleet in like Tier 4 or 5 locations versus Tier 1 to 3 locations and kinda where you sit today versus where you were at the IPO and what that runway looks like for the the store upgrading.

Question: Stephen MacLeod - Bank of Montreal - Analyst : Right, okay, that's great. That's sort of how I was thinking about it as well. And then maybe just finally if I could squeeze another one in, just you talked about the Dynamite 3.0 conversions in Canada, and I'm just curious if you have any initial or incremental thoughts on kind of LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 3:30PM, GRGD.TO - Q3 2025 Groupe Dynamite Inc Earnings Call rolling that out in a more broader way. I know at one point you were just looking for a leader for that business, just curious if any updates there.

Question: Stephen MacLeod - Bank of Montreal - Analyst : That's great thanks for the color everyone really appreciate it.

Question: Martin Landry - Stifel, Nicolaus & Company Inc - Analyst : Hi, good morning and congrats on your results. I'd like to touch a little bit on your brand awareness. I know it's not easy to measure, but I got to assume that it's growing and you're entering into new markets. So I was wondering if you have any data points that you can share as to where it is now, how it's evolved since the IPO, and where do you aspire it to be in the long run.

Question: Martin Landry - Stifel, Nicolaus & Company Inc - Analyst : Maybe just another question for me, looking at your results this quarter, extremely strong, pretty unusual is -- was there a specific promotion or collection that resonated well that may be difficult to replicate next year? Just trying to understand a little bit. You know how easy or hard this is going to be to [cop] next year and there's any one time sales bump that we should account for?

Question: Martin Landry - Stifel, Nicolaus & Company Inc - Analyst : Perfect. Yeah, I fully understand. Thank you for the call.

Question: Martin Landry - Stifel, Nicolaus & Company Inc - Analyst : Yeah, no, it's great color, thank you.

Question: Vishal Shreedhar - National Bank Financial Research - Analyst : Hi, thanks for taking my question. With regard to the special dividend, is this something investors should think that [GRD] will consider regularly for the company? And how should we think about this special dividend within context of Andrew you selling down ownership over the context of over 10 years or so. Does this have any -- does one have any relationship to the other or does this signal perhaps a new way to get liquidity or is it unrelated completely?

Question: Chris Li - Desjardins Securities Inc - Analyst : Oh, good morning everyone, and congrats on the strong results. Maybe just a quick follow-up to Michael's question. Can you maybe talk a little bit about what are the key assumptions behind your preliminary, [compsur] sales outlook for next year? I think high single-digits because it does feel a little bit conservative since I think being able to increase pricing by twice the industry will get you most of the way there. So would appreciate sort of more colors on what you're thinking about next year. Thank you.

Question: Chris Li - Desjardins Securities Inc - Analyst : Okay, that's very helpful and all the best in the new year. Thank you.

Question: Adrienne Yih - Barclays Services Corp - Analyst : Great, good morning. So I just wanted to say that this is without question one of the most successful IPOs during a very tumultuous time. And I wanted to commend the model, the culture, and the organization for kind of steering me through this. Like I feel like -- My first question is for Stacie. I want to talk a little bit about, I mean, the product, the fashion backdrop. We're clearly sort of in this moment of I would say a heightened moment, one of the most heightened moments of fashion newness, kind of coming out of the pandemic. About the product categories that you may feel you're under penetrated in as we go kind of forward over the next one, two, and three years, maybe it's lounge or athleisure and what are you chasing for spring? And then for Andrew and JP, maybe just some comments on the digital penetration. Were they very [clutter] in terms of Black -- I mean Black Friday was an online environment so I'm assuming that that outpace stores, but can how are -- what investments are you making to kind of push digital? Thank you.

Question: Mark Petrie - CIBC World Markets Corp - Analyst : Hey, good morning and thanks for all the comments so far. And I think Andrew you actually sort of touched on my question I think in the previous question or two ago. I think you guys adjusted your target customer profile in the last few years and obviously that's resonating, but I'm curious to hear how the actual customers you're bringing in compares to your target and if that affects how you think about your assortment and marketing as a result. And then maybe related, I know you're targeting a different customer between garage and it's early with Dynamite 3.0, but I'm just curious based on what you've seen so far is that what's actually playing out? Thanks.

Question: Mark Petrie - CIBC World Markets Corp - Analyst : That's great appreciate the comments and happy holidays.

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Good morning and thank you for taking our question. Andrew, JP, you've delivered very strong margin expansion this year and over the last several years. As you look ahead, is there a ceiling to the margin profile of the business that you wouldn't want to go above? And are there any investments that you would like to accelerate to fuel long-term momentum should the current comp profile of the business continue into 2026?