Montreal's Groupe Dynamite to shut down up to 10 Canadian stores, open 20 more in U.S.

Tara Deschamps · The Canadian Press

· Posted: Apr 15, 2025 3:14 PM EDT | Last Updated: 15 minutes ago

Groupe Dynamite Inc. says it expects to adjacent astir 10 stores that are mostly successful Canada this fiscal year, adjacent arsenic it plans to unfastened up to 20 much successful the U.S. implicit the aforesaid clip frame.

The Montreal-based covering retailer besides said Tuesday that betwixt 10 and 15 of its Dynamite and Garage stores volition beryllium relocated oregon renovated this year.

The institution did not instantly respond to questions astir however galore jobs whitethorn beryllium mislaid arsenic a effect of the changes.

CEO Andrew Lutfy positioned the moves arsenic his company's mode of being disciplined astir its footprint, which it yet hopes to turn from 298 to 350 stores by the extremity of its fiscal 2028.

"Agility isn't a tactic, but it's our mindset," helium said connected a telephone with analysts who were told nary little than 12 times that "agility" is the company's existent mantra.

Its adoption of that modus operandi has travel arsenic apparel retailers person been plunged into a satellite of uncertainty due to the fact that of tariffs the U.S. has been imposing connected dozens of countries.

Many of the duties person targeted Canada, portion others are aimed astatine giants successful the covering manufacturing satellite specified arsenic Bangladesh, Cambodia, China, India, Indonesia, Malaysia, Pakistan, Turkey and Vietnam.

International brands interest the tariffs volition dampen user spending and marque accumulation and shipping much expensive, forcing them to walk on elevated costs to consumers.

Lutfy thinks his institution is good positioned to upwind the storm, successful portion due to the fact that it has raised its prices "successively done the years astatine a complaint overmuch faster than the complaint of inflation."

"I cognize that's not going to alteration immoderate clip soon," helium said.

However, consumers whitethorn go little capable to sorb specified increases arsenic the tariff warfare wears on, putting unit connected their wallets and causing immoderate to rethink discretionary purchases similar clothing.

While Lutfy acknowledged "there's anxiousness retired there," helium saw apparel arsenic being a much immune class than Jet Skis, cars and furniture, which helium pointed retired radical often bargain with indebtedness financing.

"In these recessionary times, often enough, a cute, $30 apical that puts a large grin connected your look is sometimes conscionable what it takes to get you done the week," helium said.

He is truthful assured successful the mean consumer's involvement successful buying apparel adjacent during a hard economical play that helium said, "I really bash similar these times."

"I don't person an contented with it," helium said. "As a substance of fact, we spot it arsenic an accidental to instrumentality marketplace share."

Shifting proviso concatenation focus

To execute that task, the institution has been shifting its proviso concatenation distant from China and toward Bangladesh, Cambodia and Vietnam.

The institution had agelong been readying to "de-risk" itself by moving distant from China, but the tariff speech "escalated" the plan, Groupe Dynamite's president and main operating serviceman Stacie Beaver said connected the aforesaid telephone arsenic Lutfy.

It was besides coupled with a determination to motion an statement with a third-party logistics supplier to unfastened a U.S. warehouser this July that Groupe Dynamite hopes volition velocity up shipping times.

The model Groupe Dynamite offered into its operations came arsenic it reported a fourth-quarter nett of $31.0 million, up from $28.6 cardinal a twelvemonth earlier arsenic its gross roseate 13 per cent.

That nett amounted to 28 cents per diluted stock for the 13-week play ended Feb. 1 and was up from a nett of 27 cents per diluted stock successful the company's 4th fourth a twelvemonth earlier which included 14 weeks.

Revenue for the 4th totalled $271.8 million, up from $240.3 million.

Groupe Dynamite attributed the maturation to a 9.5 per cent summation successful comparable store income and contributions from caller stores.

On an adjusted basis, Groupe Dynamite said it earned 33 cents per diluted share, up from an adjusted nett of 28 cents per diluted stock a twelvemonth earlier.