Earnings release
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Page | 1 PRESS RELEASE FOR IMMEDIATE RELEASE GROUPE DYNAMITE RAISES GUIDANCE ON EXCEPTIONAL Q2 PERFORMANCE → 28.6% comparable store sales growth(1) in Q2 2025 resulting in 43.3% 2-year stack → Fiscal 2025 guidance raised on comparable store sales growth (17.0% to 19.0%) and adjusted EBITDA margin(1) (32.0% to 33.5%) → 63.6% gross margin, highest in the past four quarters despite tariff headwinds, reinforcing our luxury- inspired operating model → Disciplined execution drives 550-bps adjusted SG&A(1) improvement → Advancing UK expansion with 5 leases signed; recent North American openings outperforming Montréal, Québec, Canada – September 10, 2025 – Groupe Dynamite Inc. (“Groupe Dynamite ” or the “Company”) (TSX: GRGD) today reported its financial results for the fiscal year 2025’s second quarter ended August 2, 2025. “We delivered an exceptional quarter. Comparable store sales grew 28.6%, driving a 43.3% two-year stack. This performance was fueled largely by higher traffic, attributable to strong brand heat and an important increase in media brand impressions. We’ve rai sed our 2025 guidance on both revenue and profitability, reflecting disciplined execution, operational agility and a luxury -inspired model that consistently outperforms. Gross margin reached 63.6%, the highest in the past four quarters. Even in a cautious consumer environment, our positioning around affordable indulgences continues to put a smile on our customers’ faces , ” said Andrew Lutfy, Chief Executive Officer and Chair of the Board. “This quarter, our teams executed with precision and delivered strong results. North American openings are exceeding expectations, and our UK expansion is progressing with five new leases signed. Every function of the business, from product to marketing to our store teams, is aligned and driving performance. That alignment is fueling stronger brand experiences and deeper connections with our customers and community. With this momentum, we are positioned to elevate our performance across every market we serve, ” added Stacie Beaver, President and Chief Operating Officer. Fiscal 2025 Second Quarter Highlights • Revenue increased by 36.5% to $326.4 million in Q2 2025, compared to $239.1 million in Q2 2024. • Comparable store sales growth of 28.6% (25.7% on a constant currency basis) in Q2 2025, over and above comparable store sales growth of 14.7% in Q2 2024. • Retail sales per square foot(1) increased by 18.1% compared to Q2 2024, reaching $820 in Q2 2025. • SG&A increased to $87.7 million in Q2 2025, compared to $79.9 million in Q2 2024, and adjusted SG&A as a percentage of sales (1) decreased by 550 basis points to 26.7% from 3 2.2% over the same period in Q2 2024. • Operating income increased by 61.4% to $97.3 million in Q2 2025, compared to $60.3 million in Q2 2024.
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Page | 2 • Adjusted EBITDA(1) increased by 49.1% to $ 120.5 million in Q 2 2025, representing an adjusted EBITDA margin of 36.9%, compared to 33.8% for the same period in Q2 2024. • Diluted net earnings per share increased to $ 0.56 in Q2 2025, compared to $0.38 in Q2 2024 and adjusted diluted net earnings per share (1) increased by 43.4% to $0.57 in Q2 2025, compared to $0.40 in Q2 2024. • Real estate activity for Q2 2025 includes: o Opening of 8 gross new stores in the United States under the Garage banner o Closure of 6 stores in Canada, 4 under the Dynamite banner and 2 under the Garage banner o Renovation or relocation of 4 stores: 2 in the United States under the Garage banner and 2 in Canada under both banners. Ratios and Recent Developments • Inventory turnover (1) improved to 7.25x in Q2 2025, compared to 6.12x in Q2 2024. • Net leverage ratio (1) was 0.79x in Q2 2025, down from 1.59x in Q2 2024. • Return on assets (“ROA”) (1) improved to 24.1% in Q2 2025, compared to 22.8% in Q2 2024. • Return on capital employed (“ROCE”) (1) reached 45.0% in Q2 2025, compared to 41.9% in Q2 2024. • During the quarter, the Company repurchased 355,300 shares at an average price of $19.70 for a total of approximately $7.0 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 reconcil iations 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 Stand ards 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 “Q2 2025” are to the Company’s 13-week period ended August 2, 2025; to “Q2 2024” are to the Company’s 13-week period ended August 3, 2024: to “Fiscal 2025” are to the Company’s fiscal year ending January 31, 2026; to “Fiscal 2024” are to the Company’s fiscal year ended February 1, 2025. Outlook The table below outlines the Company’s revised financial annual guidance ranges for Fiscal 2025 replacing our previously disclosed guidance: 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 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 approximately 10 to 15, 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. Revised Fiscal 2025 Guidance Prior Fiscal 2025 Guidance Real estate activity 18 to 20 gross new store openings ↓ 8 to 9 net new store openings 18 to 20 gross new store openings 9 to 10 net new store openings Comparable store sales growth ↑ 17.0% to 19.0% 7.5% to 9.0% Adjusted EBITDA margin ↑ 32.0% to 33.5% 30.3% to 32.3% CAPEX $95.0 to $105.0 million $95.0 to $105.0 million
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Page | 3 • 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, are subject to several risks and uncertainties, and should be read in c onjunction with the “Forward-Looking Statements” section of this press release, which outlines such assumptions and describes certain of such risks. Second Quarter Fiscal 2025 Financial Results Revenue Total revenue for Q2 2025 increased by $87.3 million or 36.5% compared to Q2 2024. This growth was primarily due to a 28.6% increase in comparable store sales and contributions from new stores. Online revenue for Q2 2025 was $46.7 million, representing an increase of $11.3 million or 31.9% compared to Q2 2024. Cost of sales and gross profit Gross profit for Q 2 2025 increased by $ 49.8 million or 31.6% compared to Q 2 2024, with gross margin (1) declining by 240 basis points to 63.6%, reflecting the impact of additional tariffs, partly offset by our mitigation efforts. Occupancy costs were also higher, as variable rent expenses increased with more stores exceeding their break points because of strong sales performance, while prior year expenses were lower due to the timing of expenses. SG&A and Adjusted SG&A as a percentage of sales SG&A for Q2 2025 increased by $7.8 million or 9.8% compared to Q2 2024. This increase was primarily driven by the Company’s growing scale and activities, leading to a $ 7.2 million increase in wages, salaries, and employee benefits . Additionally, during Fiscal 2025, the Company strategically increased its marketing investment by launching more initiatives aimed at driving brand awareness, resulting in a $3.6 million increase in selling and marketing expenses compared to Q 2 2024. Administrative costs decreased by $ 3.1 million, as last year was negatively impacted by $1.9 million of professional fees related to the IPO . As a percentage of sales, SG&A decreased by 650 basis points, from 33.4% in Q2 2024 to 26.9% in Q2 2025. Operating income and adjusted EBITDA Operating income for Q2 2025 increased by $37.0 million or 61.4% to reach $97.3 million in Q2 2025 compared to $60.3 million in Q2 2024. Similarly, adjusted EBITDA for Q2 2025 increased by $39.7 million or 49.1% to reach $120.5 million compared to $ 80.8 million in Q 2 2024. The adjusted EBITDA margin improved to 3 6.9% compared to 33.8% in Q2 2024, despite a decrease in gross margin. This is largely due to a reduction in adjusted
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Page | 4 SG&A as a percentage of sales, which decreased to 26.7% in Q2 2025 from 32.2% in Q2 2024. The 5 50 basis points improvement reflects the benefits of operating leverage as well as effective cost management. Net earnings and adjusted net earnings Net earnings for Q2 2025 increased by $2 3.5 million or 58.2% compared to Q2 2024. 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 Q2 2025 increased by $2 2.1 million or 5 1.8% compared to Q2 2024. Working capital For Q2 2025 , we have maintained a strong inventory turnover ratio of 7.25x, compared to 6.12x for Q2 2024, with current assets of $259.7 million (including $151.2 million in cash) and current liabilities of $179.6 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 $72.6 million in Q2 2025, up from $29.6 million in Q2 2024, reflecting stronger net earnings and lower CAPEX. Net leverage ratio The Company’s net leverage ratio decreased to 0.79x compared to 1.59x last year. This improvement is due to the increase in adjusted EBITDA and the resulting increase in cash balance, along with the repayment of all of the outstanding borrowings under the credit facilities. These factors have more than offset the increase in lease liabilities and allowed the Company to reduce leverage significantly. At the end of Q2 2025, the Company has over $ 151.2 million in cash and $312 .0 million available under credit facilities, providing flexibility to drive growth, invest in strategic initiatives and manage market volatility. Return metrics ROA of 24.1% for Q2 2025 has increased from the ROA of 22.8% for Q2 2024. This improvement indicates a significant boost in the Company’s ability to leverage its assets more effectively than in previous periods. For Q2 2025, our ROCE reached 45.0%, compared to 41.9% in Q2 2024, 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 financia l statements and might not be comparable to similar financial measures presented by other entities.
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Page | 5 Selected Financial Information 13-week periods ended 26-week periods ended In thousands of Canadian dollars, except per share data and retail sales per square foot August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024 $ $ $ $ Revenue 326,425 239,104 553,081 427,988 Cost of sales 118,944 81,400 204,889 149,632 Gross profit 207,481 157,704 348,192 278,356 Operating expenses Selling, general and administrative expenses 87,669 79,871 162,360 146,104 Depreciation and amortization 22,637 17,728 43,936 34,482 Foreign exchange (gain) loss (80) (175) 318 (662) Total operating expenses 110,226 97,424 206,614 179,924 Operating income 97,255 60,280 141,578 98,432 Net financing costs 7,225 6,531 14,043 11,734 Earnings before income taxes 90,030 53,749 127,535 86,698 Income taxes 26,145 13,392 36,314 22,404 Net earnings 63,885 40,357 91,221 64,294 Net earnings per share(3) Basic $0.59 $0.38 $0.85 $0.60 Diluted $0.56 $0.38 $0.80 $0.60 Additional financial measures Retail revenue 279,683 203,741 469,084 361,890 Comparable store sales growth(1) 28.6% 14.7% 21.8% 15.4% Retail sales per square foot(1) $820 $694 $820 $694 Adjusted EBITDA(1) 120,548 80,839 187,373 136,604 Adjusted net earnings(1) 64,756 42,698 93,151 67,494 Adjusted net earnings per share(1) (3) Basic $0.60 $0.40 $0.86 $0.63 Diluted $0.57 $0.40 $0.82 $0.63 Gross margin(1) 63.6% 66.0% 63.0% 65.0% SG&A as a percentage of sales(1) 26.9% 33.4% 29.4% 34.1% Adjusted SG&A as a percentage of sales(1) 26.7% 32.2% 29.0% 33.3% Adjusted EBITDA margin(1) 36.9% 33.8% 33.9% 31.9% Ratios and other metrics: ROA(1) 24.1% 22.8% 24.1% 22.8% ROCE(1) 45.0% 41.9% 45.0% 41.9% Net leverage ratio(1) 0.79 1.59 0.79 1.59 Free cash flow(1) 72,618 29,624 114,242 66,205 Inventory turnover(1) 7.25 6.12 7.25 6.12 CAPEX(1) 11,151 22,620 32,222 32,855 Number of stores(2) 299 293 299 293
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Page | 6 As at In thousands of Canadian dollars Aug 2, 2025 Feb 1, 2025 $ $ Cash 151,221 74,195 Inventories 57,378 44,952 Total current assets 259,730 161,568 Property and equipment 136,612 107,465 Right-of-use assets 379,105 330,105 Total assets 795,533 618,637 Long-term portion of lease liabilities 396,968 340,102 Total non-current liabilities 396,968 340,102 Total liabilities 576,586 477,323 Total shareholders’ equity 218,947 141,314 Total debt(1) 431,061 372,581 Net debt(1) 279,840 298,386 _______________ 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 reconcil iations 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 financia l 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. Second quarter results conference call Groupe Dynamite will hold a conference call to discuss its Q2 2025 results today, September 10, 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, cat ering 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 wh ile 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 6,500 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.
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Page | 7 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 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” , “comparable store 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 “inventory turnover” , “retail sales per square foot” , “gross 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 , which are incorporated by reference herein, can be found in our Management’s Discussion & Analysis for Q2 2025 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 secur ities 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 annu al 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 26-week periods ended In thousands of Canadian dollars Aug 2, 2025 Aug 3, 2024 Aug 2, 2025 Aug 3, 2024 $ $ $ $ Operating income 97,255 60,280 141,578 98,432 Depreciation and amortization 22,637 17,728 43,936 34,482 EBITDA 119,892 78,008 185,514 132,914 EBITDA margin 36.7% 32.6% 33.5% 31.1%
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Page | 8 (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 plan. Adjusted SG&A as a percentage of sales 13-week periods ended 26-week periods ended In thousands of Canadian dollars Aug 2, 2025 Aug 3, 2024 Aug 2, 2025 Aug 3, 2024 $ $ $ $ SG&A 87,669 79,871 162,360 146,104 Adjustments to SG&A Stock-based compensation expense(1) 1,469 981 2,129 1,840 Gain on lease modification (813) - (813) - Professional fees related to the IPO - 1,850 543 1,850 Total adjustments 656 2,831 1,859 3,690 Adjusted SG&A 87,013 77,040 160,501 142,414 Adjusted SG&A as a percentage of sales 26.7% 32.2% 29.0% 33.3% (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 plan. 13-week periods ended 26-week periods ended In thousands of Canadian dollars Aug 2, 2025 Aug 3, 2024 Aug 2, 2025 Aug 3, 2024 EBITDA $ 119,892 $ 78,008 $ 185,514 $ 132,914 Adjustments to EBITDA Stock-based compensation expense(1) 1,469 981 2,129 1,840 Gain on lease modification (813) - (813) - Professional fees related to the IPO - 1,850 543 1,850 Total adjustments 656 2,831 1,859 3,690 Adjusted EBITDA 120,548 80,839 187,373 136,604 Adjusted EBITDA margin 36.9% 33.8% 33.9% 31.9% 13-week periods ended 26-week periods ended In thousands of Canadian dollars Aug 2, 2025 Aug 3, 2024 Aug 2, 2025 Aug 3, 2024 $ $ $ $ Adjusted EBITDA 120,548 80,839 187,373 136,604 Depreciation of right-of-use assets (15,005) (13,309) (29,464) (25,914) Interest expense on lease liabilities (6,973) (5,852) (13,498) (11,271) Adjusted EBITDA (After Rent Equivalent Expense) 98,570 61,678 144,411 99,419 Adjusted EBITDA (After Rent Equivalent Expense) margin 30.2% 25.8% 26.1% 23.2%
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Page | 9 Adjusted net earnings 13-week periods ended 26-week periods ended In thousands of Canadian dollars, except per share data Aug 2, 2025 Aug 3, 2024 Aug 2, 2025 Aug 3, 2024 $ $ $ $ Net earnings 63,885 40,357 91,221 64,294 Adjustments to net earnings Stock-based compensation expense(1) 1,469 981 2,129 1,840 Gain on lease modification (813) - (813) - Professional fees related to the IPO - 1,850 543 1,850 Income tax (recovery) expense on taxable items above 215 (490) 71 (490) Total adjustments 871 2,341 1,930 3,200 Adjusted net earnings 64,756 42,698 93,151 67,494 Adjusted net earnings per share Basic $0.60 $0.40 $0.86 $0.63 Diluted $0.57 $0.40 $0.82 $0.63 (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 plan. Comparable store sales 13-week periods ended 26-week periods ended In thousands of Canadian dollars Aug 2, 2025 Aug 3, 2024 Variance Aug 2, 2025 Aug 3, 2024 Variance Retail revenue 279,689 203,741 37.3% 469,084 361,890 29.6% Comparable store sales on a constant currency basis 25.7% 19.2% Foreign currency exchange impact 2.9% 2.6% Comparable store sales 28.6% 21.8% Non-comparable store sales and others 8.7% 7.8% Return on assets or ROA 52-week and 53-week periods ended In thousands of Canadian dollars August 2, 2025 August 3, 2024 $ $ Adjusted net earnings 173,410 132,832 Average total assets 719,992 582,283 Return on assets 24.1% 22.8%
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Page | 10 Return on capital employed or ROCE 52-week and 53-week periods ended In thousands of Canadian dollars August 2, 2025 August 3, 2024 $ $ Adjusted EBITDA 354,036 276,563 Depreciation and amortization (86,213) (70,815) Adjusted EBITDA reduced by depreciation and amortization 267,823 205,748 Capital employed Average total Assets 719,992 582,283 - Average total current liabilities (164,182) (139,922) + Average short-term portion of long-term debt 9,916 19,812 + Average short-term portion of lease liabilities 28,998 28,691 Average total capital employed 594,724 490,864 Return on capital employed 45.0% 41.9% Free cash flow 13-week periods ended 26-week periods ended In thousands of Canadian dollars Aug 2, 2025 Aug 3, 2024 Aug 2, 2025 Aug 3, 2024 $ $ $ $ Cash from operating activities 83,769 52,244 146,464 99,060 Additions to property and equipment (8,400) (20,185) (27,174) (28,655) Additions to intangible assets (2,751) (2,435) (5,048) (4,200) Free cash flow 72,618 29,624 114,242 66,205 Net leverage ratio 52-week and 53-week periods ended In thousands of Canadian dollars August 2, 2025 August 3, 2024 Net debt $ $ Long-term debt including current portion - 142,777 Lease liabilities including current portion 431,061 326,712 - Cash (151,221) (29,173) Total net debt 279,840 440,316 Adjusted EBITDA 354,036 276,563 Net leverage ratio 0.79 1.59
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Page | 11 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 revised guidance for Fiscal 2025) and anticipated events or results and may include statements relating to: our business, brand positioning, brand awareness and brand expansions, recent opening and expected operational impact of our U.S. distribution center, our planned U.K expansio n, 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 Unit ed 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 appr opriate 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 ma intaining 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, inten ded 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 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 an y 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 app licable 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.
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Page | 12 Contacts: Questions from investors – Investor Relations: Alex Limosani, Manager, Investor Relations and Corporate Finance - investors@dynamite.ca Questions from media – Media Relations: Youann Blouin, Director of Corporate Communications - media@dynamite.ca