GROUPE DYNAMITE POSTS 37% REVENUE GROWTH AND 4-YEAR HIGH GROSS MARGIN IN Q1 2026

• Delivered strong Q1 2026 comparable store sales growth¹ of 22.6% and total revenue growth of 37.0%
• Achieved a four-year high gross margin¹ of 67.4%, an increase of 530 bps
• Expanded adjusted EBITDA margin¹ to 36.8%, underscoring our luxury-inspired business model
• Continued successful expansion with new stores outperforming expectations
• Raised adjusted EBITDA margin guidance for Fiscal 2026 to 38.25%–39.50%

MONTRÉAL, June 16, 2026 /CNW/ - Groupe Dynamite Inc. ("Groupe Dynamite" or the "Company") (TSX: GRGD) today reported its financial results for the fiscal year 2026's first quarter ended May 2, 2026.

"Our first quarter results demonstrate the strength of our operating model and our ability to deliver profitable growth. Comparable store sales increased 22.6%, gross margin reached a four-year high, and adjusted EBITDA margin expanded to 36.8% of revenue, positioning ourselves alongside the world's most profitable fashion houses. We continue to strive to remain a highly productive specialty retailer with strong brands, exceptional unit economics, disciplined inventory management, attractive returns on capital, and a growth engine we have built over decades that continues to scale profitably," said Andrew Lutfy, Chief Executive Officer and Chair of the Board. 

"Q1 was a strong start to fiscal 2026. Across both GARAGE and DYNAMITE, customers responded positively to our assortments, marketing campaigns and the consistency of the experience we deliver across channels. Our real estate strategy continues to be a significant driver of growth, customer acquisition and profitability. By opening new locations in premium centers, optimizing our fleet and delivering a compelling in-store experience, we continue to drive significant productivity improvements across our store network. Most importantly, we continue to see strong customer engagement across both brands, reflected in growth in our active customer base and increasing customer lifetime value," added Stacie Beaver, President and Chief Operating Officer.

Fiscal 2026 First Quarter Highlights

• Revenue increased by 37.0% to $310.6 million in Q1 2026², compared to $226.7 million in Q1 2025².
• Comparable store sales growth of 22.6% (24.7% on a constant currency basis⁽¹⁾) in Q1 2026, over and above comparable store sales growth of 13.0% in Q1 2025.
• Retail sales per square foot⁽¹⁾ increased by 32.4% compared to Q1 2025, reaching $1,001 in Q1 2026.
• Gross margin expanded by 530 basis points to 67.4% in Q1 2026 compared to 62.1% in Q1 2025.
• SG&A increased to $102.2 million in Q1 2026, compared to $74.7 million in Q1 2025, and adjusted SG&A as a percentage of sales⁽¹⁾ decreased by 190 basis points to 30.5% from 32.4% over the same period in Q1 2025.
• Operating income increased by 80.1% to $79.8 million in Q1 2026, compared to $44.3 million in Q1 2025.
• Adjusted EBITDA⁽¹⁾ increased by 71.3% to $114.4 million in Q1 2026, representing an adjusted EBITDA margin of 36.8%, compared to 29.5% for the same period in Q1 2025.
• Diluted net earnings per share increased to $0.45 in Q1 2026, compared to $0.24 in Q1 2025 and adjusted diluted net earnings per share ⁽¹⁾ increased by 100.0% to $0.50 in Q1 2026, compared to $0.25 in Q1 2025.
• Real estate activity for Q1 2026 includes:
  • Opening of 5 gross new stores: 3 in the United States and 2 in the United Kingdom, both under the Garage banner.
  • 5 store closures: 4 in Canada under the Dynamite banner and 1 in the United States under the Garage banner.
  • Renovation or relocation of stores: 3 in Canada under the Garage banner.

Ratios and Recent Developments

• Inventory turnover ⁽¹⁾ improved to 9.69x in Q1 2026, compared to 8.50x in Q1 2025.
• Net leverage ratio ⁽¹⁾ was 1.01x in Q1 2026, up from 0.92x in Q1 2025.
• Return on assets ("ROA") ⁽¹⁾ improved to 38.6% in Q1 2026, compared to 23.8% in Q1 2025.
• Return on capital employed ("ROCE") ⁽¹⁾ reached 74.4% in Q1 2026, compared to 44.5% in Q1 2025.
• During the quarter, the Company repurchased 1,011,200 shares at an average price of $88.83 for a total of approximately $89.8 million.

_________
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, as issued by the International Accounting Standards Board (IASB) ("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 "Q1 2026" are to the Company's 13-week period ended May 2, 2026, to "Q1 2025" are to the Company's 13-week period ended May 3, 2025; to "Fiscal 2026" are to the Company's fiscal year ending January 30, 2027: to "Fiscal 2025" are to the Company's fiscal year ended January 31, 2026.

Outlook

The table below outlines the Company's revised financial annual guidance ranges for Fiscal 2026 replacing our previously disclosed guidance:

	Revised Fiscal 2026 Guidance	Prior Fiscal 2026 Guidance
Real estate activity	24 to 26 gross new store openings ↓ 8 to 10 net new store openings	24 to 26 gross new store openings 10 to 12 net new store openings
Comparable store sales growth	11.0% to 14.0%	11.0% to 14.0%
Total revenue growth	22.0% to 25.0%	22.0% to 25.0%
Adjusted EBITDA margin	↑ 38.25% to 39.50%	37.75% to 39.25%
CAPEX	$100.0 to $110.0 million	$100.0 to $110.0 million

Our achievement of these targets is subject to several risks and uncertainties, including the following:⁽¹⁾

• Adverse effects from future policy or legislative changes, tariffs (in addition to those currently in place) 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 2026, along with the risk of delays in construction activities beyond our control, and substantial increases in occupancy costs.
• Failing to successfully open and operate new stores in the United Kingdom.
• Failing to complete the renovations and relocations scheduled for Fiscal 2026, which is expected to be between approximately 10 to 15.
• Achieving guidance numbers 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, 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.

___________
Note:
(1)	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 and are subject to several risks and uncertainties, including the risks and uncertainties set forth above as well as those incorporated by reference in the "Forward-Looking Statements" section of this press release.

Recent events

On April 27, 2026, the Company announced the closing of a repurchase for cancellation of 550,000 subordinate voting shares from 4370368 Canada Inc., a company controlled by Mr. Andrew Lutfy, at a price of $93.00 per subordinate voting share, for total consideration of approximately $51.0 million pursuant to an exemption order (the "exemption order") granted by the Autorité des marchés financiers (the "repurchase"). The repurchase was made at a discount to the prevailing market price of the subordinate voting shares in accordance with the exemption order. The repurchase was made outside the facilities of the TSX, as permitted under the normal course issuer bid ("NCIB").

On April 27, 2026, the Company announced the closing of a secondary offering by 4370368 Canada Inc. of 2,700,000 subordinate voting shares at an offering price of $93.00 per subordinate voting share for aggregate gross proceeds to 4370368 Canada Inc. of approximately $251.0 million (the "offering"). The offering was made by a syndicate of underwriters led by BMO Capital Markets on a bought deal basis, pursuant to a short form base shelf prospectus dated April 20, 2026 and a prospectus supplement dated April 22, 2026. The subordinate voting shares were also offered by way of a private placement in the United States. The Company did not receive any proceeds from the offering.

First Quarter Fiscal 2026 Financial Results

Revenue

Total revenue for Q1 2026 increased by $83.9 million or 37.0% compared to Q1 2025. This growth was primarily due to a 22.6% increase in comparable store sales and contributions from new stores. Online revenue for Q1 2026 was $50.6 million, representing an increase of $13.3 million or 35.7% compared to Q1 2025.

Cost of sales and gross profit

Gross profit for Q1 2026 increased by $68.6 million or 48.8% compared to Q1 2025, with gross margin increasing by 530 basis points to 67.4%. This increase is attributable to the 37.0% revenue growth compared to the relatively lower increase in cost of sales of 17.9% which is due to lower tariffs, controlled merchandise cost increases and lower markdowns.

Selling, general and administrative expenses

SG&A for Q1 2026 increased by $27.5 million or 36.8% compared to Q1 2025. This increase was primarily driven by the Company's growing scale and activities, leading to a $18.6 million increase in wages and salaries, including share-based compensation and their related benefits. Additionally, during Q1 2026, the Company selling and marketing expenses increased by $6.5 million compared to Q1 2025, mainly due to strategic investments made to support the Company's entry into the UK market, as well as differences in the timing of selling and marketing activities compared to the prior year. Administrative expenses also increased by $2.3 million compared to Q1 2025, reflecting higher operating costs incurred to support growth initiatives, particularly investments in information technology and software. As a percentage of sales, SG&A decreased by 10 basis points from 33.0% in Q1 2025 to 32.9% in Q1 2026.

Operating income and adjusted EBITDA

Operating income for Q1 2026 increased by $35.5 million or 80.1% to reach $79.8 million compared to $44.3 million in Q1 2025. Similarly, adjusted EBITDA for Q1 2026 increased by $47.6 million or 71.3% to reach $114.4 million compared to $66.8 million in Q1 2025. The adjusted EBITDA margin improved by 730 basis points to 36.8% compared to 29.5% in Q1 2025. This performance results from the combination of both a 530 basis points improvement in gross margin and a reduction of 190 basis points in adjusted SG&A as a percentage of sales, which decreased to 30.5% in Q1 2026 from 32.4% in Q1 2025.

Net earnings and adjusted net earnings

Net earnings for Q1 2026 increased by $24.4 million or 89.4% compared to Q1 2025. This growth was mainly driven by higher revenue, which led to increased gross profit, partially offset by higher SG&A and increased depreciation and amortization. Adjusted net earnings⁽¹⁾ for Q1 2026 increased by $28.9 million or 101.8% compared to Q1 2025.

Working capital

As of May 2, 2026, we have maintained a strong inventory turnover ratio of 9.69x, compared to 8.50x as of May 3, 2025, with current assets of $147.0 million (including $8.7 million in cash) and current liabilities of $237.2 million. Inventory continues to be minimized through agile product development and strategic sourcing, driven by our high open-to-buy ratio.

Free cash flow

Free cash flow for Q1 2026 decreased by $37.6 million to $4.0 million, down from $41.6 million in Q1 2025. This is the reflection of lower cash from operating activities driven by significantly higher tax payments.

Net leverage ratio

The Company's net leverage ratio increased to 1.01x compared to 0.92x last year. This increase is primarily due to higher lease liabilities and lower cash balances, partially offset by higher adjusted EBITDA. At the end of Q1 2026, the Company has approximately $8.7 million in cash and $292.0 million available under credit facilities, providing flexibility to drive growth, invest in strategic initiatives, manage market volatility and return excess cash to shareholders.

Return metrics

ROA of 38.6% for Q1 2026 has increased from the ROA of 23.8% for Q1 2025. This improvement indicates a significant boost in the Company's ability to leverage its assets more effectively than in previous periods.

For Q1 2026, our ROCE reached 74.4%, compared to 44.5% in Q1 2025, highlighting the effectiveness of our recent strategies and investments. The slower growth of average capital employed compared to adjusted operating income reflects strong capital utilization, enabling the generation of operating income.

_______________
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.

Selected Financial Information

	13-week periods ended
In thousands of Canadian dollars, except per share data and retail sales per square foot	May 2, 2026	May 3, 2025
	$	$
Revenue	310,579	226,656
Cost of sales	101,300	85,945
Gross profit	209,279	140,711
Operating expenses
Selling, general and administrative expenses	102,219	74,691
Depreciation and amortization	27,228	21,299
Foreign exchange (gain) loss	(13)	398
Total operating expenses	129,434	96,388
Operating income	79,845	44,323
Net financing costs	9,227	6,818
Earnings before income taxes	70,618	37,505
Income taxes	18,938	10,169
Net earnings	51,680	27,336
Net earnings per share
Basic	$0.47	$0.25
Diluted	$0.45	$0.24
Additional financial measures
Retail revenue	259,952	189,401
Comparable store sales growth^(1)	22.6 %	13.0 %
Retail sales per square foot^(1)	$1,001	$756
Adjusted EBITDA^(1)	114,418	66,825
Adjusted net earnings^(1)	57,264	28,395
Adjusted net earnings per share^(1)
Basic	$0.52	$0.26
Diluted	$0.50	$0.25
Gross margin^(1)	67.4 %	62.1 %
SG&A as a percentage of sales^(1)	32.9 %	33.0 %
Adjusted SG&A as a percentage of sales^(1)	30.5 %	32.4 %
Adjusted EBITDA margin^(1)	36.8 %	29.5 %
Ratios and other metrics:
ROA^(1)	38.6 %	23.8 %
ROCE^(1)	74.4 %	44.5 %
Net leverage ratio^(1)	1.01	0.92
Free cash flow^(1)	3,967	41,624
Inventory turnover^(1)	9.69	8.50
CAPEX^(1)	26,098	21,071
Number of stores^(2)	307	297

	As at
In thousands of Canadian dollars	May 2, 2026	Jan 31, 2026
	$	$
Cash	8,682	82,478
Inventories	54,747	51,219
Total current assets	146,954	206,789
Property and equipment	182,664	164,675
Right-of-use assets	450,101	415,036
Total assets	801,525	805,888
Long-term portion of lease liabilities	480,785	444,280
Total non-current liabilities	507,244	450,238
Total liabilities	744,417	711,961
Total shareholders' equity	57,108	93,927
Total debt^(1)	538,923	477,248
Net debt^(1)	530,241	394,770

_______________ 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.

First quarter results conference call

Groupe Dynamite will hold a conference call to discuss its Q1 2026 results today, June 16, 2026, 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 a growing international presence, we operate across Canada and the United States, and more recently expanded into the United Kingdom, advancing our global footprint. 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 7,200 employees 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 Accounting Standards and do not have a standardized meaning prescribed by IFRS Accounting Standards 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 Accounting Standards 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 Accounting Standards. In this press release, we use non-IFRS financial measures including "EBITDA", "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", "adjusted SG&A as a percentage of sales", "comparable store sales on a constant currency basis", "return on assets", "return on capital employed" and "net leverage ratio". We also use supplementary financial measures including "comparable store sales", "inventory turnover", "retail sales per square foot", "gross margin", "SG&A as a percentage of sales", "CAPEX" and other operating metrics commonly used in the retail industry.

Additional details for these non-IFRS and other financial measures, which are incorporated by reference herein, can be found in our Management's Discussion & Analysis for Q1 2026 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 Accounting Standards 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 margin, adjusted EBITDA margin and adjusted EBITDA (after rent equivalent expense) margin

	13-week periods ended
In thousands of Canadian dollars	May 2, 2026	May 3, 2025
	$	$
Operating income	79,845	44,323
Depreciation and amortization	27,228	21,299
EBITDA	107,073	65,622
EBITDA margin	34.5 %	29.0 %

	13-week periods ended
In thousands of Canadian dollars	May 2, 2026	May 3, 2025
EBITDA	$107,073	$65,622
Adjustments to EBITDA
Stock-based compensation expense and related benefits^(1)	7,449	660
Gain on lease modifications	(104)	-
Professional fees related to the IPO	-	543
Total adjustments	7,345	1,203
Adjusted EBITDA	114,418	66,825
Adjusted EBITDA margin	36.8 %	29.5 %

(1)	This excludes the expenses related to cash-settled deferred share units granted under the Shared Success Program, as well as those paid in lieu of bonus under the omnibus equity incentive plan (the "Omnibus Plan").

	13-week periods ended
In thousands of Canadian dollars	May 2, 2026	May 3, 2025
Adjusted EBITDA	$ 114,418	$ 66,825
Depreciation of right-of-use assets	(17,564)	(14,459)
Interest expense on lease liabilities	(8,122)	(6,525)
Adjusted EBITDA (After Rent Equivalent Expense)	88,732	45,841
Adjusted EBITDA (After Rent Equivalent Expense) margin	28.6 %	20.2 %

Adjusted SG&A as a percentage of sales

	13-week periods ended
In thousands of Canadian dollars	May 2, 2026	May 3, 2025
	$	$
SG&A	102,219	74,691
Adjustments to SG&A
Stock-based compensation expense and related benefits^(1)	7,449	660
Gain on lease modifications	(104)	-
Professional fees related to the IPO	-	543
Total adjustments	7,345	1,203
Adjusted SG&A	94,874	73,488
Adjusted SG&A as a percentage of sales	30.5 %	32.4 %

(1)	This excludes the expenses related to cash-settled deferred share units granted under the Shared Success Program, as well as those paid in lieu of bonus under the omnibus equity incentive plan (the "Omnibus Plan").

Adjusted net earnings

	13-week periods ended
In thousands of Canadian dollars, except per share data	May 2, 2026	May 3, 2025
	$	$
Net earnings	51,680	27,336
Adjustments to net earnings
Stock-based compensation expense and related benefits^(1)	7,449	660
Gain on lease modifications	(104)	-
Professional fees related to the IPO	-	543
Income tax (recovery) expense on taxable items above	(1,761)	(144)
Total adjustments	5,584	1,059
Adjusted net earnings	57,264	28,395
Adjusted net earnings per share
Basic	$0.52	$0.26
Diluted	$0.50	$0.25

(1)	This excludes the expenses related to cash-settled deferred share units granted under the Shared Success Program, as well as those paid in lieu of bonus under the omnibus equity incentive plan (the "Omnibus Plan").

Comparable store sales

	13-week periods ended
In thousands of Canadian dollars	May 2, 2026	May 3, 2025	Variance
Retail revenue	259,952	189,401	37.3 %
Comparable store sales on a constant currency basis			24.7 %
Foreign currency exchange impact			(2.1 %)
Comparable store sales			22.6 %
Non-comparable store sales and others			14.7 %

Return on assets or ROA

		52-week periods ended
In thousands of Canadian dollars		May 2, 2026	May 3, 2025
		$	$
Adjusted net earnings		286,674	151,352
Average total assets		742,704	636,407
Return on assets		38.6 %	23.8 %

Return on capital employed or ROCE

	52-week periods ended
In thousands of Canadian dollars	May 2, 2026	May 3, 2025
	$	$
Adjusted EBITDA	525,443	314,327
Depreciation and amortization	(100,021)	(81,304)
Adjusted EBITDA reduced by depreciation and amortization	425,422	233,023
Capital employed
Average total assets	742,704	636,407
- Average total current liabilities	(211,001)	(155,780)
+ Average short-term portion of long-term debt	-	9,924
+ Average short-term portion of lease liabilities	40,227	32,713
Average total capital employed	571,930	523,264
Return on capital employed	74.4 %	44.5 %

Free cash flow

	13-week periods ended
In thousands of Canadian dollars	May 2, 2026	May 3, 2025
	$	$
Cash from operating activities	30,065	62,695
Additions to property and equipment	(22,773)	(18,774)
Additions to intangible assets	(3,325)	(2,297)
Free cash flow	3,967	41,624

Net leverage ratio

	13-week periods ended
In thousands of Canadian dollars	May 2, 2026	May 3, 2025
	$	$
Net debt
Long-term debt including current portion	20,000	-
Lease liabilities including current portion	518,923	394,987
- Cash	(8,682)	(106,572)
Total net debt	530,241	288,415
Adjusted EBITDA	525,443	314,327
Net leverage ratio	1.01	0.92

Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information in this press release may relate to our future financial outlook (including our revised guidance for Fiscal 2026) and anticipated events or results and may include (without limitation) statements relating to: our ability to raise performance and enhance long-term shareholder value, strengthen brand experiences and positioning, raise brand awareness, and deepen our community connections; the continued ramp-up of our U.S. distribution center and its expected operational impact; our ability to continue creating accessible fashion and delivering on-trend products; the planned expansion and optimization of our store footprint and the achievements that can be derived therefrom; our expectations regarding the reinvestment in our business, the return of excess cash to shareholders, our financial performance, financial position and use of liquidity; and our future growth rates and growth strategies. 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 2025 (the "AIF") which is 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 Canadian securities legislation, 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, 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, Head of Corporate Communications - [email protected]