Groupe Dynamite Inc. (GRGD.TO): 1Q26 First Take: Strong 1Q26 margins, reiterated FY guide despite softer comp

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Groupe Dynamite Inc. (GRGD.TO): 1Q26 First Take: Strong 1Q26 margins, reiterated FY guide despite softer comp

Equity Research

16 June 2026 | 7:39AM EDT

Groupe Dynamite Inc. (GRGD.TO): 1Q26 First Take: Strong 1Q26 margins,

reiterated FY guide despite softer comp

Bottom line: GRGD’s 1Q26 comp growth of 22.6% was shy of GSe at +27% and Jon Keypour

+1(212)934-0334 |

VisibleAlpha consensus of +25% as growth slowed more than expected since mgmt’s jon.keypour@gs.com

Goldman Sachs & Co. LLC

+28% QTD preview of the first 8 weeks of the quarter in April. Reiterated comp

Kareem Elbadrawi

guidance of +11-14% is still well within reach given the remaining three quarters in +1(212)902-7320 |

the year, and we expect the comp deceleration and visibility into 2Q progress will kareem.elbadrawi@gs.comGoldman Sachs & Co. LLC

dominate the earnings call today. Total revenue was slightly shy of GSe but broadly in

line with VAe as some softness in Canada vs our ests was mostly offset by strength in

the US, including about +100bps to topline from the recent openings in the UK (we

had assumed about +200bps to net sales). Guidance for the year points to two

additional closures vs mgmt’s prior outlook (net sales guide unchanged, however),

which we expect will be Canadian locations (likely Dynamite), though we look for

clarity on banner, location, and motivation for the acceleration.

Despite the shy topline, profitability was a bright spot, with gross margin exceeding

both GSe/VAe by over +300bps helped by lower tariffs, controlled costs, and lower

markdowns. SG&A margin was broadly in line with our estimates, which factored in

stepped-up marketing to support the UK expansion, wage inflation, and investment

spending.

Still, we expect the topline performance to weigh on the stock today and look for