A Member of Pat McKeough’s Inner Circle recently asked for his advice on Groupe Dynamite, a fast‑growing women’s fashion retailer focused on Gen Z and Millennial customers through its two main brands across North America and online.
Pat likes the rare combination of high growth and high profitability in specialty retail, driven by two well‑positioned brands and an operating model that’s generating lots of profits. What’s more, its launch in the U.K. adds considerable growth prospects.
Groupe Dynamite Inc. (Symbol GRGD on Toronto; www.groupedynamite.com) is a Montreal-based retailer with two brands: Garage (231 stores) and Dynamite (76). It has 173 stores in Canada (44% of revenue) and 134 in the U.S. (56%).
The company characterizes its customer base this way: Garage’s typical customer is a “casual 24-year-old individual embracing a fun, unapologetic and effortlessly cool style.” Dynamite’s is a “34-year-old force to be reckoned with; she takes on life feeling empowered and makes doing it all look possible while embracing the perfectly imperfect moments along the way.”
Groupe Dynamite’s data indicates that the median age of its Garage customers is 22.5 years old and the average age of its Dynamite customers is 31 years old.
On November 20, 2024, the company launched its IPO when it listed its shares on the Toronto exchange. It sold subordinate voting shares at $21. The company got none of these proceeds—the funds went to sole owner and CEO Andre Lutfy.
The company’s IPO was the first Canadian IPO in 2024 and the first since March 2023.
Groupe Dynamite’s CEO Andrew Lutfy didn’t start up the company—it began as the Garage Clothing Company in 1975—but he became its driving force soon after joining in 1982 as a part-time, 18-year-old stock clerk. The first Dynamite store opened in 1977 at the Carrefour Laval mall in Montreal.
In 2002, Lutfy became Groupe Dynamite’s sole owner. After the IPO, Lutfy owns 86.7% of the stock outstanding and 98.5% of the votes (through his multiple voting shares).
In 2025, Groupe Dynamite opened its U.S. Distribution Center to enhance its operational capabilities and support its growth across North America.
In a major expansion step, in February 2026, the company launched its Garage U.K. e-commerce platform. At the end of March, it opened two Garage stores in London. They were the best store openings in terms of sales in the company’s history. Groupe Dynamite plans to open five more in the U.K. in 2026.
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Groupe Dynamite offers another quarter of double‑digit sales and profit growth
In the quarter ended January 31, 2026, Groupe Dynamite’s sales increased by 45.0%, to $394.2 million from $271.8 million a year earlier. Same-store sales grew 30.4% in the quarter. Retail sales per square foot increased by 29.7% from a year ago, reaching $952 over the last 12 months.
Excluding one-time items, the company earned $81.6 million, or $0.71 a share, in the quarter, up 123.0% from $36.6 million, or $0.33.
Groupe Dynamite faces strong competition from other fashion retailers. In addition, it operates in the highly fickle clothing market. We are wary of new stock issues, all the more so when insiders control the firm through multiple voting shares.
Still, we see the company’s outlook as attractive. Despite today’s uncertain consumer confidence, there is no signs of a slowdown at any if its markets.
Meantime, its recent U.K. expansion is going very well—Groupe Dynamite’s Garage U.K. flagship store on Oxford Street in London is experiencing robust traffic. Seeding the market through social media influencers was well received, and the brand is off to a strong start with the U.K. consumer. While still early, the U.K. market shows considerable potential, and may point the way to expansion in Europe.
Groupe Dynamite also has lots of room to expand its e-commerce operations.
Recommendation in Pat’s Inner Circle: Group Dynamite Inc. is a buy for aggressive investors.
