GROUPE DYNAMITE REPORTS FOURTH QUARTER AND FISCAL 2024 RESULTS AND INTRODUCES SHARE BUYBACK PROGRAM

• Q4 marked strong continued growth, with revenue and margins both exceeding expectations
• Fiscal 2024 sets a strong foundation for growth into fiscal 2025
• Return of capital to shareholders via implementation of a share buyback program
• Market-leading operational and financial metrics reflecting our luxury-inspired operating model

MONTREAL, April 15, 2025 /CNW/ - Groupe Dynamite Inc. ("Groupe Dynamite" or the "Company") (TSX: GRGD) today reported its financial results for the fourth quarter and full year of fiscal 2024 ended February 1, 2025.

"Fiscal 2024 was a breakthrough year for Groupe Dynamite—one that reaffirmed the power of our brands and our vision. Our strong financial and operational results are the outcome of relentless focus, a responsive supply chain, and deep cultural relevance. Garage and Dynamite aren't just brands—they're platforms for confidence, creativity, and connection. As we look ahead, we acknowledge the current market uncertainty and we remain focused on staying agile, embracing change, and seizing opportunities in a rapidly evolving environment," said Andrew Lutfy, Chief Executive Officer and Chair of the Board.

"Our Fiscal 2024 performance reflects the strength of our brands and the focus of our teams. We delivered on-trend collections that resonated strongly, and we activated cultural moments that sparked real engagement. From our high-impact real estate strategy to our upcoming U.S. distribution center launch, we're continuing to build an agile, omnichannel platform designed for scale. As we head into Fiscal 2025, our growth is anchored in a clear brand flywheel: we create brand moments that drive visibility, empower ambassadors to expand reach, and reward loyal customers who fuel our momentum. This is how we win—by staying close to her world and delivering an experience that is emotionally resonant, community-driven, and impossible to ignore," added Stacie Beaver, President & Chief Operating Officer. 

"Our top priority remains reinvesting in the business to drive long-term growth, as reflected in our FY25 capital expenditure guidance, which is primarily focused on opening new stores in high-quality real estate. In these volatile times, we are opportunistic in taking market share and securing new premier locations to strengthen our real estate portfolio. Given our strong balance sheet and robust free cash flow generation, along with the belief that the market price of the subordinate voting shares may from time to time not reflect the underlying value of the subordinate shares, we believe a Normal Course Issuer Bid provides an opportunistic way to return capital to shareholders. In this context, we see value in repurchasing shares when appropriate, while maintaining a disciplined capital structure. We believe that introducing an NCIB demonstrates our confidence in the company's fundamentals and our commitment to delivering long-term shareholder value," said Jean-Philippe D. Lachance, Chief Financial Officer.

The results for Q4 2024 and Fiscal 2024 reflect one fewer week compared to the results for Q4 2023 and Fiscal 2023. All comparable store data for both the quarter and the year are presented on a comparable basis of 13 and 52 weeks, respectively.

Fiscal 2024 Fourth Quarter Highlights

• Revenue increased by 13.1% to $271.8 million in Q4 2024, compared to $240.3 million in Q4 2023. Excluding the 14^th week of Q4 2023, total revenue increased by 18.8%.
• Comparable store sales growth⁽¹⁾ of 9.5% in Q4 2024, over and above comparable store sales growth of 9.8% in Q4 2023.
• Gross margin slightly expanded by 0.1% to 59.0% in Q4 2024 compared to 58.9% in Q4 2023.
• SG&A increased to $87.0 million in Q4 2024, compared to $74.4 million in Q4 2023, and adjusted SG&A as a percentage of sales decreased to 29.6% from 30.5% over the same period in Fiscal 2023.
• Operating income increased by 4.6% to $50.7 million in Q4 2024, compared to $48.5 million in Q4 2023.
• Adjusted EBITDA⁽¹⁾ increased by 17.0% to $79.5 million in Q4 2024, representing an adjusted EBITDA margin⁽¹⁾ of 29.2%, compared to 28.3% over the same period in Fiscal 2023.
• Diluted net earnings per share increased to $0.28 in Q4 2024, compared to $0.27 in Q4 2023 and adjusted diluted net earnings per share⁽¹⁾ increased by 18.3% to $0.33 in Q4 2024, compared to $0.28 in Q4 2023.
• Real estate activity for Q4 2024 includes:
  • Opening of 2 gross new stores in the United States under the Garage banner
  • Closure of 3 stores: 1 in the United States under the Dynamite banner and 2 in Canada under the Garage banner
  • Completion of 1 store relocation in the United States under the Garage banner

Fiscal 2024 Highlights

• Revenue increased by 19.7% to $958.5 million in Fiscal 2024, compared to $800.8 million in Fiscal 2023. Excluding the 53^rd week of Fiscal 2023, total revenue increased by 21.4%.
• Comparable store sales growth⁽¹⁾ of 12.3% in Fiscal 2024, over and above comparable store sales growth of 8.2% in Fiscal 2023.
• Retail sales per square foot⁽¹⁾ increased by 18.6% since the end of Fiscal 2023, reaching $734 in Fiscal 2024.
• Gross margin expanded by 2.0% to 62.8% in Fiscal 2024 compared to 60.8% in Fiscal 2023.
• SG&A increased to $313.2 million in Fiscal 2024, compared to $272.3 million in Fiscal 2023 and adjusted SG&A as a percentage of sales decreased to 31.2% from 33.7% in Fiscal 2023.
• Operating income increased by 46.2% to $212.2 million in Fiscal 2024, compared to $145.2 million in Fiscal 2023.
• Adjusted EBITDA⁽¹⁾ increased by 39.5% to $303.3 million in Fiscal 2024, representing an adjusted EBITDA margin⁽¹⁾ of 31.6%, compared to 27.1% over last year, driven by higher gross margin and operating leverage.
• Diluted net earnings per share increased to $1.25 in Fiscal 2024, compared to $0.80 in Fiscal 2023, and adjusted diluted net earnings per share⁽¹⁾ increased by 64.9% to $1.36 in Fiscal 2024, compared to $0.82 in Fiscal 2023.
• Real estate activity for Fiscal 2024 includes:
  • Opening of 20 gross new stores: 17 in the United States under the Garage banner and 3 in Canada under both banners
  • Closure of 12 stores: 2 in the United States under both banners and 10 in Canada under both banners
  • Completed the relocation and renovation of 4 stores in the United States under the Garage banner

Ratios and Recent Developments

• As a result of our luxury-inspired operating model, our inventory turnover⁽¹⁾ improved to 8.54x in Fiscal 2024, compared to 7.98x in Fiscal 2023.
• Net leverage ratio⁽¹⁾ was 0.98x in Fiscal 2024, down from 1.96x in Fiscal 2023.
• Return on assets ("ROA")⁽¹⁾ improved to 26.0% in Fiscal 2024, compared to 17.9% in Fiscal 2023.
• Return on capital employed ("ROCE")⁽¹⁾ reached 47.4% for Fiscal 2024, compared to 35.3% in Fiscal 2023.
• In February 2025, the Company entered into a warehousing agreement with a third-party logistics provider to deliver warehousing and distribution services in the United States, with minimal CAPEX⁽¹⁾ involved. The distribution center is slated to go live in summer 2025.
• The Company announced today that it approved a normal course issuer bid ("NCIB") program, allowing the Company to repurchase up to an aggregate 1,301,447 subordinate voting shares. Further details are provided in a later section of this press release.

Notes:
^(1)	Refer to "Non-IFRS Measures including Non-IFRS Financial Measures, Non-IFRS Ratios, Supplementary Financial Measures and Retail Industry Metrics" section of this press release for further details concerning these measures including definitions and reconciliations of each non-IFRS financial measure to the relevant reported IFRS financial measure. Non-IFRS financial measures and non-IFRS ratios do not have a standardized meaning under IFRS Accounting Standards, which are used to prepare the Company's financial statements and might not be comparable to similar financial measures presented by other entities.
^(2)	All references to "Q4 2024" are to the Company's 13-week period ended February 1, 2025; to "Q4 2023" are to the Company's 14-week period ended February 3, 2024; "Fiscal 2024" are to the Company's fiscal year ended February 1, 2025; and "Fiscal 2023" are to the Company's fiscal year ended February 3, 2024.

Outlook

The table below outlines the Company's financial annual guidance ranges for Fiscal 2025:⁽¹⁾

	Fiscal 2025 Guidance
Real estate activity	18 to 20 gross new store openings 9 to 10 net new store openings
Comparable store sales growth	5.0% to 6.5%
Adjusted EBITDA margin	30.3% to 32.3%
CAPEX	$95.0 to $105.0 million

Our achievement of these targets is subject to several risks and uncertainties, including the following:⁽²⁾

• Adverse effects from future policy or legislative changes, tariffs (in addition to those announced in April 2025) that may be imposed by the United States, or retaliatory tariffs from other countries and the United States.
• Failing to successfully locate our stores in suitable locations and any impairment of a store location, including any decrease in customer traffic.
• Failing to negotiate lease agreements for the store pipeline for Fiscal 2025, along with the risk of delays in construction activities beyond our control, and substantial increases in occupancy costs.
• Failing to complete the renovations and relocations scheduled for Fiscal 2025, which is expected to be between 10 to 15 stores, including 3 DYN 3.0 store concepts in Canada.
• Headwinds of $4 to $5 million in incremental public company costs, or a 40-basis point impact on adjusted EBITDA margin, which is included in the outlook table above.
• Maintaining recent levels of comparable store sales or retail sales per square foot.
• Disruption of our strategic relationships with suppliers, impairing open-to-buy visibility.
• Failing to optimize merchandise and anticipate and respond to constantly changing consumer demands and fashion trends
• Failing to protect and enhance our brands
• Failing to attract new customers, or retain existing customers, or to maintain or increase sales to those customers.
• Failing to actively manage product margins, including the implementation of effective pricing strategies.
• Obstacles to the ongoing implementation of in-store productivity initiatives and the achievement of cost savings intended to improve operating expenses.
• Any material disruption in our information technology systems and e-commerce business.
• The occurrence of unusually adverse weather, particularly during peak seasons.
• Adverse changes in the general economic conditions and consumer spending in Canada, the United States and other parts of the world.

Notes:
(1)	"Fiscal 2025" are to the Company's fiscal year ended January 31, 2026
(2)	The guidance ranges included in this section are forward-looking statements within the meaning of applicable securities laws, are based on assumptions that we believe to be reasonable, are subject to several risks and uncertainties, and should be read in conjunction with the "Forward-Looking Statements" section of this press release, which outlines such assumptions and describes certain of such risks.

Normal Couse Issuer Bid

The Company's capital allocation priority for the next 12 months is investing in business growth. With a healthy balance sheet and minimal debt, we expect to continue generating strong free cash flow. We plan to return capital to shareholders in the near term through our NCIB (defined below) while maintaining a solid balance sheet. With the belief  that the market price of the subordinate voting shares may from time to time not reflect the underlying value of the subordinate voting shares, Groupe Dynamite announced today that its board of directors has approved, and that it received approval from the TSX for, the implementation of a normal course issuer bid ("NCIB"), authorizing the Company to repurchase up to an aggregate of 1,301,447 subordinate voting shares, representing approximately 10% of the public float as at April 3, 2025.

The net average daily trading volume for the period since the date of listing, November 26, 2024, up to April 10, 2025, represents 76,939 subordinate voting shares. In accordance with TSX requirements, the Company is entitled to purchase, on any trading day, up to a total of 19,234 subordinate voting shares representing 25% of this average daily trading volume. The Company may repurchase subordinate voting shares on the open market through the facilities of the TSX as well as through other alternative Canadian trading systems, from time to time, over the course of twelve months commencing on or around April 17, 2025 and ending at the latest on April 16, 2026.

The actual number of subordinate voting shares purchased under the NCIB, the timing of purchases and the price at which the subordinate voting shares are bought will depend upon management discretion based on factors such as market conditions. All subordinate voting shares repurchased under the NCIB will be cancelled upon their repurchase.

In connection with the NCIB, the Company will enter into an automatic securities purchase plan ("ASPP") with a designated broker on or about April 21, 2025 whereby shares may be repurchased at times when such purchases would otherwise be prohibited pursuant to regulatory restrictions or self-imposed blackout periods. Under the ASPP, before entering a self-imposed blackout period, the Company may, but is not required to, ask the designated broker to make purchases under the NCIB. Such purchases will be made at the discretion of the designated broker, within parameters established by the Company prior to the blackout periods. Outside the blackout periods, purchases are made at the discretion of the Company's management. The ASPP will constitute an "automatic plan" for purposes of applicable Canadian securities legislation and has been pre-cleared by the TSX.

As of April 3, 2025, the Company had 15,405,043 subordinate voting shares issued and outstanding, and a public float of 13,014,479 subordinate voting shares. The Company has not repurchased any of its subordinate voting shares during the last twelve months.

Fourth Quarter and Fiscal 2024 Financial Results

Revenue

Total revenue for Q4 2024 increased by $31.5 million or 13.1% compared to Q4 2023. Excluding the 14^th week of Q4 2023, total revenue increased by 18.8%. This growth was primarily due to a 9.5% increase in comparable store sales and contributions from new stores. Online revenue for Q4 2024 increased by $7.4 million or 13.6% compared to Q4 2023, reaching $61.6 million for the quarter.

Total revenue for Fiscal 2024 increased by $157.7 million or 19.7% compared to Fiscal 2023. Excluding the 53^rd  week of Fiscal 2023, total revenue increased by 21.4%. This growth was primarily due to a 12.3% increase in comparable store sales and contribution from new stores. Online revenue for Fiscal 2024 increased by $24.7 million or 16.8% compared to Fiscal 2023, reaching $171.8 million for the year.

Cost of sales and gross profit

Gross profit for Q4 2024 increased by $18.8 million or 13.3% compared to Q4 2023, which resulted in gross margin expanding by 0.1% to 59.0% from 58.9% over the same period in Fiscal 2023. This improvement is primarily due to lower occupancy costs as a percentage of sales.

Gross profit for Fiscal 2024 increased by $114.4 million or 23.5% compared to Fiscal 2023, which resulted in gross margin expanding by 2.0% to 62.8% from 60.8% over last year. This increase is attributable to the 19.7% revenue growth compared to the relatively lower increase in cost of sales of 13.8% which is due to controlled merchandise cost increases, lower outbound freight costs and lower markdowns.

SG&A and Adjusted SG&A as a percentage of sales

SG&A for Q4 2024 increased by $12.7 million or 17.0% compared to Q4 2023. This increase was primarily driven by the company's growing scale and activities, leading to a $5.2 million increase in wages, salaries, and employee benefits, along with a $3.2 million increase in selling and marketing expenses as both revenue and operations expanded. Additionally, in Q4 2024, administrative costs were negatively affected by $3.7 million in professional fees associated with our initial public offering ("IPO") and an incremental $1.9 million expense on stock-based compensation due to the revaluation of the fair value of the equity instruments granted prior to the IPO. Adjusted SG&A as a percentage of sales improved to 29.6% in Q4 2024 from 30.5% in Q4 2023.

SG&A for Fiscal 2024 increased by $40.8 million or 15.0% compared to Fiscal 2023. This increase was primarily due to a $27.0 million rise in wages, salaries, and employee benefits, driven by higher labor costs as revenue grew and a larger proportion of stores were opened in the U.S., where labor tends to be more expensive than in Canada. Fiscal 2024 was also negatively impacted by $8.7 million of professional fees related to the IPO recorded in administrative costs. Adjusted SG&A as a percentage of sales improved to 31.2% in Fiscal 2024 from 33.7% in Fiscal 2023.

Net earnings and adjusted net earnings

Net earnings for Q4 2024 increased by $2.4 million or 8.5% compared to Q4 2023. This growth is mainly attributed to higher revenue, partially offset by higher SG&A.  Adjusted net earnings⁽¹⁾ for Q4 2024 increased by $7.0 million or 23.6% compared to Q4 2023.

Net earnings for Fiscal 2024 increased by $50.0 million or 58.2% compared to Fiscal 2023. This growth is attributable to higher revenue and a 200 basis points improvement in gross margin, partly offset by higher SG&A expenses and higher depreciation and amortization expenses. Adjusted net earnings for Fiscal 2024 increased by $59.1 million or 66.7% compared to Fiscal 2023.

Operating income and adjusted EBITDA

Operating income for Q4 2024 increased by $2.2 million or 4.6% to reach $50.7 million in Q4 2024 compared to $48.5 million in Q4 2023. Similarly, adjusted EBITDA for Q4 2024 increased by $11.6 million or 17.0% to reach $79.5 million compared to $67.9 million in Q4 2023. The adjusted EBITDA margin improved to 29.2% in Q4 2024, compared to 28.3% in the same period last year. This growth is primarily attributed to adjusted SG&A as a percentage of sales which decreased to 29.6% from 30.5% last year, reflecting the benefits of operating leverage and effective cost control.

Operating income for Fiscal 2024 increased by $67.0 million or 46.2% to reach $212.2 million in Fiscal 2024 compared to $145.2 million in Fiscal 2023. Similarly, adjusted EBITDA for Fiscal 2024 increased by $85.9 million or 39.5% to reach $303.3 million compared to $217.4 million in Fiscal 2023. The adjusted EBITDA margin improved to 31.6%, compared to 27.1% last year. This substantial increase is attributable to enhanced gross margin and adjusted SG&A as a percentage of sales which decreased to 31.2% from 33.7% last year.

Working capital

As of February 1, 2025, we have maintained a strong inventory turnover ratio of 8.54x, compared to 7.98x as of February 3, 2024, with current assets of $161.6 million (including $74.2 million in cash) and current liabilities of $137.2 million. Inventory continues to be minimized through agile product development and strategic sourcing, driven by our high open-to-buy ratio.

Free cash flow

The Company reported robust free cash flow⁽¹⁾, achieving $55.9 million in Q4 2024, up from $41.9 million in Q4 2023. While operating cash flow remained strong, the Company mainly benefited from lower CAPEX, which decreased from $28.9 million in Q4 2023 to $12.6 million in Q4 2024. On a full year basis, free cash flow reached $164.3 million compared to $92.4 million last year, an increase of 77.2%.

Net leverage ratio

The Company's net leverage ratio decreased to 0.98x compared to 1.96x last year. This improvement is due to the increase in adjusted EBITDA, coupled with the repayment of all of its outstanding commitments under the credit facilities which has more than offset the rise in lease liabilities and allowed the Company to reduce leverage significantly. At the end of Fiscal 2024, the Company has over $74 million in cash and $312 million available under credit facilities, providing flexibility to drive growth, invest in strategic initiatives, and manage market volatility.

Return metrics

ROA of 26.0% for Fiscal 2024 represents a notable increase from the ROA of 17.9% for Fiscal 2023. This improvement indicates a significant boost in the Company's ability to leverage its assets more effectively than in previous periods.

For Fiscal 2024, our ROCE reached 47.4%, compared to 35.3% for last year, highlighting the effectiveness of our recent strategies and investments.

Note:
(1)	Refer to "Non-IFRS Measures including Non-IFRS Financial Measures, Non-IFRS Ratios, Supplementary Financial Measures and Retail Industry Metrics" section of this press release for further details concerning these measures including definitions and reconciliations of each non-IFRS financial measure to the relevant reported IFRS financial measure. Non-IFRS financial measures and non-IFRS ratios do not have a standardized meaning under IFRS Accounting Standards, which are used to prepare the Company's financial statements and might not be comparable to similar financial measures presented by other entities.
(2)	All references to "Q4 2024" are to the Company's 13-week period ended February 1, 2025 and to "Q4 2023" are to the Company's 14-week period ended February 3, 2024; "Fiscal 2024" are to the Company's fiscal year ended February 1, 2025; and "Fiscal 2023" are to the Company's fiscal year ended February 3, 2024.

Selected Financial Information	13-week and 14-week periods ended		52-week and 53-week periods ended
In thousands of Canadian dollars, except per share data and retail sales per square foot	Feb 1, 2025	Feb 3, 2024	Feb 1, 2025	Feb 3, 2024
	$	$	$	$
Revenue	271,765	240,291	958,525	800,833
Cost of sales	111,456	98,739	356,933	313,646
Gross profit	160,309	141,552	601,592	487,187
Operating expenses
Selling, general and administrative expenses	87,027	74,365	313,161	272,338
Depreciation and amortization	22,250	18,430	76,759	69,370
Foreign exchange (gain) loss	310	254	(534)	288
Total operating expenses	109,587	93,049	389,386	341,996
Operating income	50,722	48,503	212,206	145,191
Net financing costs	6,897	6,734	24,613	26,548
Earnings before income taxes	43,825	41,769	187,593	118,643
Income taxes	12,791	13,174	51,825	32,827
Net earnings	31,034	28,595	135,768	85,816
Net earnings per share
Basic	$0.29	$0.27	$1.26	$0.80
Diluted	$0.28	$0.27	$1.25	$0.80
Additional financial measures
Retail revenue	210,192	186,112	786,764	653,772
Comparable store sales growth^(1)	9.5 %	9.8 %	12.3 %	8.2 %
Retail sales per square foot^(1)	$734	$619	$734	$619
Adjusted EBITDA^(1)	79,465	67,915	303,267	217,365
Adjusted net earnings^(1)	36,553	29,577	147,753	88,620
Adjusted net earnings per share^(1) (3)
Basic	$0.34	$0.28	$1.37	$0.82
Diluted	$0.33	$0.28	$1.36	$0.82
Gross margin^(1)	59.0 %	58.9 %	62.8 %	60.8 %
SG&A as a percentage of sales^(1)	32.0 %	30.9 %	32.7 %	34.0 %
Adjusted SG&A as a percentage of sales^(1)	29.6 %	30.5 %	31.2 %	33.7 %
Adjusted EBITDA margin^(1)	29.2 %	28.3 %	31.6 %	27.1 %
Ratios and other metrics:
ROA^(1)	26.0 %	17.9 %	26.0 %	17.9 %
ROCE^(1)	47.4 %	35.3 %	47.4 %	35.3 %
Net leverage ratio^(1)	0.98	1.96	0.98	1.96
Free cash flow^(1)	55,269	41,885	163,667	92,373
Inventory turnover^(1)	8.54	7.98	8.54	7.98
CAPEX^(1)	12,626	28,891	63,307	53,392
Number of stores^(2)	298	290	298	290

	As at
In thousands of Canadian dollars	Feb 1, 2025	Feb 3, 2024
	$	$
Cash	74,195	8,135
Inventories	44,952	38,627
Total current assets	161,568	83,458
Property and equipment	107,465	65,419
Right-of-use assets	330,105	246,240
Total assets	618,637	516,476
Long-term portion of long-term debt	-	145,100
Long-term portion of lease liabilities	340,102	240,301
Total non-current liabilities	340,102	388,901
Total liabilities	477,323	511,548
Total shareholders' equity	141,314	4,928
Total debt^(1)	372,581	433,275
Net debt^(1)	298,386	425,140

Notes:
^(1)	Refer to "Non-IFRS Measures including Non-IFRS Financial Measures, Non-IFRS Ratios, Supplementary Financial Measures and Retail Industry Metrics" section of this Press Release for further details concerning these measures including definitions and reconciliations of each non-IFRS financial measure to the relevant reported IFRS financial measure. Non-IFRS financial measures and non-IFRS ratios do not have a standardized meaning under IFRS Accounting Standards, which are used to prepare the Company's financial statements and might not be comparable to similar financial measures presented by other entities
^(2)	Number of stores is as at end of period.
^(3)	Net earnings per share and Adjusted net earnings per share are calculated, after giving the effect, on a retrospective basis, to the Share Consolidation that occurred in connection with the Pre-Closing Reorganization on November 20, 2024.

Fourth quarter results conference call

Groupe Dynamite will hold a conference call to discuss its Fiscal 2024 fourth quarter results today, April 15, 2025, at 10:30 a.m. (ET), followed by a question-and-answer period for financial analysts. Other interested parties may participate in the call on a listen-only basis via live audio webcast, accessible through the "Events & Presentations" tab on Groupe Dynamite's website at https://investors.groupedynamite.com/.

About Groupe Dynamite Inc.

Groupe Dynamite Inc. (TSX: GRGD) is a growth-oriented company striving for excellence in the fashion industry. Operating retail stores and digital experiences under two complementary and spirited banners—GARAGE and DYNAMITE—we offer a wide range of women's fashion apparel, catering to the needs of Generation Z and Millennials. With leading key operating metrics and a commitment to innovation and disciplined execution, we are proud to continue our ambitious growth plans. Guided by our mission, "Empowering YOU to be YOU, one outfit at a time," we are a values-led, inclusive organization committed to inspiring confidence and self-expression. Proudly rooted in the chic and vibrant city of Montréal, our culture, values and distinct brands position us to shape the future of fashion while attracting and inspiring the next generation of leaders and creators. Our ownership-mentality and entrepreneurial mindset is reflected in our Shared Success Program, through which all our 6,000 employees will have ownership exposure. This alignment of interests and values fosters collaboration, fuels innovation, and creates meaningful long-term value for our team and stakeholders alike.

Non-IFRS Measures including Non-IFRS Financial Measures, Non-IFRS Ratios, Supplementary Financial Measures and Retail Industry Metrics

This press release makes reference to certain non-IFRS measures, including non-IFRS financial measures, non-IFRS ratios, supplementary financial measures and certain retail industry metrics. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. In this press release, we use non-IFRS financial measures including "adjusted EBITDA", "adjusted EBITDA (after rent equivalent expense)", "free cash flow", "adjusted net earnings" and "adjusted net earnings per share" and non-IFRS ratios including "EBITDA margin", "adjusted EBITDA margin", "adjusted EBITDA (after rent equivalent expense) margin", "return on assets", "return on capital employed" and "net leverage ratio". We also use supplementary financial measures including "inventory turnover", "retail sales per square foot", "comparable store sales", "gross margin", "operating margin", "SG&A as a percentage of sales", "Adjusted SG&A as a percentage of sales" and "CAPEX" and other operating metrics commonly used in the retail industry.

Additional details for these non-IFRS and other financial measures can be found in our Management's Discussion & Analysis for Fiscal 2024 under the section "Non-IFRS Measures including Non-IFRS Financial Measures, Non-IFRS Ratios, Supplementary Financial Measures and Retail Industry Metrics", which is posted on our website at https://groupedynamite.com/, and filed on SEDAR+ at www.sedarplus.ca. Reconciliations for each non-IFRS financial measure to the most directly comparable IFRS measures are provided below.

These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.

Non-IFRS Financial Measures and Non-IFRS Ratios

Earnings before interests, taxes, depreciation, amortization ("EBITDA"), adjusted EBITDA and adjusted EBITDA (after rent equivalent expense)

EBITDA is calculated as operating income plus depreciation and amortization. Adjusted EBITDA accounts for other one-time or non-cash items. We consider EBITDA to be a valuable non-IFRS measure in assessing the Company's operating performance. Adjusted EBITDA helps users of the financial statements identify underlying trends by providing a measure of operating performance which excludes non-representative income or expenses, non-cash items, or variations in other items not related to day-to-day operations such as stock-based compensation expense and other professional fees in connection with the IPO. We believe that the presentation of EBITDA contributes to the comparability of our financial results as it is a measure commonly used by issuers operating in our industry.

Adjusted EBITDA (after rent equivalent expense) is calculated as adjusted EBITDA less a rent equivalent expense equal to the sum of depreciation of right-of-use assets and interest expense on lease liabilities. It is intended to provide users of our financial information with a view of the Company's adjusted EBITDA after the impact of depreciation on our right-of-use asset and interest expense on lease liabilities, principally for the purposes of assisting with comparability of the performance between the Company and that of issuers operating in the same industry with a significant retail footprint.

EBITDA margin, adjusted EBITDA margin and adjusted EBITDA (after rent equivalent expense) margin

The EBITDA margin, adjusted EBITDA margin and adjusted EBITDA (after rent equivalent expense) margin represent EBITDA, adjusted EBITDA and adjusted EBITDA (after rent equivalent expense) as a percentage of revenue.

	13-week and 14-week periods ended			52-week and 53-week periods ended
In thousands of Canadian dollars	Feb 1, 2025	Feb 3, 2024	Feb 1, 2025		Feb 3, 2024
	$	$	$		$
Operating income	50,722	48,503	212,206		145,191
Depreciation and amortization	22,250	18,430	76,759		69,370
EBITDA	72,972	66,933	288,965		214,561
EBITDA margin	26.9 %	27.9 %	30.1 %		26.8 %
	13-week and 14-week periods ended			52-week and 53-week periods ended
In thousands of Canadian dollars	Feb 1, 2025	Feb 3, 2024	Feb 1, 2025		Feb 3, 2024
EBITDA	$72,972	$66,933	$288,965		$214,561
Adjustments to EBITDA
Stock-based compensation expense	2,817	982	5,557		2,804
Professional fees related to the IPO	3,676	-	8,745		-
Total adjustments	6,493	982	14,302		2,804
Adjusted EBITDA	79,465	67,915	303,267		217,365
Adjusted EBITDA margin	29.2 %	28.3 %	31.6 %		27.1 %
	13-week and 14-week periods ended		52-week and 53-week periods ended
In thousands of Canadian dollars	Feb 1, 2025	Feb 3, 2024	Feb 1, 2025		Feb 3, 2024
Adjusted EBITDA	79,465	67,915	303,267		217,365
Depreciation of right-of-use assets	(14,486)	(12,135)	(53,902)		(45,929)
Interest expense on lease liabilities	(6,445)	(5,178)	(23,768)		(19,288)
Adjusted EBITDA (After Rent Equivalent Expense)	58,534	50,602	225,597		152,148
Adjusted EBITDA (After Rent Equivalent Expense) margin	21.5 %	21.1 %	23.5 %		19.0 %

Adjusted SG&A as a percentage of sales

Adjusted SG&A as a percentage of sales is calculated as selling, general and administrative expenses plus or less non-recurring items and non-cash items, over total revenue. The adjustments are made to exclude stock-based compensation expense and other professional fees in connection with the IPO. We consider adjusted SG&A as a percentage of sales to be a valuable non-IFRS measure as it contributes to the comparability of our financial results with that of issuers operating in our industry.

	13-week and 14-week periods ended			52-week and 53-week periods ended
In thousands of Canadian dollars, except per share data	Feb 1, 2025	Feb 3, 2024	Feb 1, 2025		Feb 3, 2024
	$	$	$		$
SG&A	87,027	74,365	313,161		272,338
Adjustments to SG&A
Stock-based compensation expense	2,817	982	5,557		2,804
Professional fees related to the IPO	3,676	-	8,745		-
Total adjustments	6,493	982	14,302		2,804
Adjusted SG&A	80,534	73,383	298,859		269,534
Adjusted SG&A as a percentage of sales	29.6 %	30.5 %	31.2 %		33.7 %

Adjusted net earnings

Adjusted net earnings is calculated as net earnings plus or less non-recurring items and their ensuing tax impact, as applicable. The adjustments are made to exclude stock-based compensation expense and other professional fees in connection with the IPO. We consider adjusted net earnings to be a valuable non-IFRS measure as it contributes to the comparability of our financial results with that of issuers operating in our industry. In addition to adjusted net earnings, we may present certain metrics and ratios with respect to adjusted net earnings including but not limited to adjusted net earnings per share. Adjusted net earnings per share are calculated, after giving the effect, on a retrospective basis, to the share consolidation that occurred in connection with the pre-closing reorganization on or about November 20, 2024.

	13-week and 14-week periods ended			52-week and 53-week periods ended
In thousands of Canadian dollars, except per share data	Feb 1, 2025	Feb 3, 2024	Feb 1, 2025		Feb 3, 2024
	$	$	$		$
Net earnings	31,034	28,595	135,768		85,816
Adjustments to net earnings
Stock-based compensation expense	2,817	982	5,557		2,804
Professional fees related to the IPO	3,676	-	8,745		-
Income tax (recovery) expense on taxable items above	(974)	-	(2,317)		-
Total adjustments	5,519	982	11,985		2,804
Adjusted net earnings	36,553	29,577	147,753		88,620
Adjusted net earnings per share
Basic	$0.34	$0.28	$1.37		$0.82
Diluted	$0.33	$0.28	$1.36		$0.82

Return on assets or ROA is the ratio of adjusted net earnings over average total assets and is a non-IFRS ratio. Average total assets is determined by taking the sum of the current year's total assets and the total assets from twelve months ago, and then dividing that sum by two. It is considered a useful non-IFRS ratio because it provides insight as to the Company's productive use of its assets and contributes to the comparability of our financial results with that of issuers operating in our industry.

	52-week and 53-week periods ended
In thousands of Canadian dollars	February 1, 2025	February 3, 2024
Adjusted net earnings	147,753	88,620
Average total assets	567,557	494,054
Return on assets	26.0 %	17.9 %

Return on capital employed or ROCE is the ratio of (i) the result of adjusted EBITDA reduced by depreciation and amortization over (ii) average capital employed and is a non-IFRS ratio. Average capital employed is determined by taking the sum of the current year's total capital employed and the total capital employed from twelve months ago, and then dividing that sum by two. We calculate the capital employed by subtracting total current liabilities, excluding the short-term portion of long-term debt and lease liabilities, from total assets. It is considered a useful non-IFRS ratio because it provides insight as to the degree to which the Company's capital investments contribute to its profitability and contributes to the comparability of our financial results with that of issuers operating in our industry.

	52-week and 53-week periods ended
In thousands of Canadian dollars	February 1, 2025	February 3, 2024
	$	$
Adjusted EBITDA	303,267	217,365
Depreciation and amortization	(76,759)	(69,370)
Adjusted EBITDA reduced by depreciation and amortization	226,508	147,995
Capital employed
Average total Assets	567,557	494,054
- Average total current liabilities	(129,934)	(124,418)
+ Average short-term portion of long-term debt	9,920	19,789
+ Average short-term portion of lease liabilities	30,257	29,792
Average total capital employed	477,800	419,217
Return on capital employed	47.4 %	35.3 %

Free cash flow is calculated as cash flow generated from (used in) operating activities less cash used on the additions to property, equipment and intangible assets. We consider free cash flow to be a valuable non-IFRS financial measure as it provides users of the financial statements an indicator of our ability to generate cash to support future growth, debt repayment and potential distributions to shareholders.

	13-week and 14-week periods ended			52-week and 53-week periods ended
In thousands of Canadian dollars	Feb 1, 2025	Feb 3, 2024	Feb 1, 2025		Feb 3, 2024
	$	$	$		$
Cash from operating activities	67,895	70,776	226,974		145,765
Additions to property and equipment	(8,580)	(26,142)	(52,659)		(48,422)
Additions to intangible assets	(4,046)	(2,749)	(10,648)		(4,970)
Free cash flow	55,269	41,885	163,667		92,373

Net leverage ratio is the ratio of net debt, which is calculated as long-term debt (including current portion) plus lease liabilities (including current portion) less cash, over adjusted EBITDA. We consider net leverage ratio to be a valuable non-IFRS ratio as it is an indicator of the Company's ability to meet financial obligations and contributes to the comparability of our financial results with that of issuers operating in our industry.

	52-week and 53-week periods ended
In thousands of Canadian dollars	February 1, 2025	February 3, 2024
Net debt	$	$
Long-term debt including current portion	-	164,939
Lease liabilities including current portion	372,581	268,336
- Cash	(74,195)	(8,135)
Total net debt	298,386	425,140
Adjusted EBITDA	303,267	217,365
Net leverage ratio	0.98	1.96

Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information may relate to our future financial outlook (including our guidance for Fiscal 2025) and anticipated events or results and may include information regarding our business, brand positioning, brand awareness and brand expansions, our expectations on our ability to continue creating accessible fashion and delivering on-trend products, our expectations regarding the expansion and optimization of our store footprint and the achievements that can be derived therefrom, our expectations regarding reinvestment in our business, our financial performance, financial position and use of liquidity, the remodeling and relocation of existing stores, our expectations regarding our growth rates and growth strategies, and the impact of any tariffs imposed by the United States, Canada and other countries on the Company's operations and financial position. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding possible future events or circumstances.

Forward-looking information is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Our assumptions underpinning forward-looking information include, but are not limited to, the following: expected short-, medium- and long-term discretionary spending and overall economic trends; successfully maintaining and enhancing our brands; marketing efforts, store renovations and store expansions will be successful and drive our revenue; maintaining our supplier relationships and a steady, cost-effective supply of inventories; successfully managing expenses and driving gross margin improvements; growing our e-commerce business and making headway in our international expansion efforts; successfully retaining key personnel including our chief executive officer; the absence of material changes to taxes, duties, tariffs and interest rates; the absence of further material disruptions in the international trade; the economy generally; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated, intended or implied.

Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Forward-looking information is also subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Risks and uncertainties are discussed in the "Risk Factors" section of the Company's annual information form for Fiscal 2024 (the "AIF") which are incorporated by reference into this document. A copy of the AIF and the Company's other publicly filed documents can be accessed under the Company's profile on the System for Electronic Document Analysis and Retrieval ("SEDAR+") at www.sedarplus.ca. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The risks, uncertainties, opinions, estimates and assumptions referred to elsewhere in this press release should be considered carefully by readers. Accordingly, readers should not place undue reliance on forward-looking information. To the extent any forward-looking information in this press release constitutes future-oriented financial information or financial outlook, within the meaning of applicable securities laws, such information is being provided to demonstrate the potential of the Company and readers are cautioned that this information may not be appropriate for any other purpose. Future-oriented financial information and financial outlook, as with forward-looking information generally, are based on current assumptions and subject to risks, uncertainties and other factors. Furthermore, the forward-looking information contained in this press release represents our expectations as of the date of this press release (or as of the date it is otherwise stated to be made) and is subject to change after such date. We disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable Canadian securities legislation. All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

SOURCE GROUPE DYNAMITE INC

Contacts: Questions from investors - Investor Relations: Alex Limosani, Manager, Investor Relations and Corporate Finance - [email protected]; Questions from media - Media Relations: Youann Blouin, Director of Corporate Communications - [email protected]