- Groupe Dynamite
- Empire Co.
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Groupe Dynamite stores see no spending pullback
Groupe Dynamite (TSX:GRGD)
First-quarter 2025 highlights:
- Profit: $27.3 million (up from $23.9 million a year ago)
- Sales: $226.7 million (up from $188.9 million)
Groupe Dynamite Inc. reported strong early-2025 results and its leadership says higher tariffs have not dented demand for its core apparel offerings. While some consumers are trimming big-ticket purchases because of rising duties and broader economic pressure, the fashion retailer says shoppers continue to buy affordable items that deliver quick satisfaction.
CEO Andrew Lutfy noted that when households cut back on expensive discretionary spending, they still seek small, feel-good purchases — for example, a stylish top that offers repeated enjoyment at a modest price. He described the business as providing an “affordable indulgence” that aligns with customers looking for moments of joy amid economic uncertainty.
The company reported a first-quarter profit of $27.3 million, or $0.24 per diluted share, compared with $23.9 million, or $0.22 per diluted share, a year earlier. On an adjusted basis, earnings were $0.25 per diluted share versus $0.23 a year ago. Revenue rose to $226.7 million from $188.9 million, and comparable store sales increased by 13%.
Following the results, Groupe Dynamite raised its full-year comparable-store sales outlook to a growth range of 7.5% to 9%, up from its prior guidance of 5% to 6.5%. The stronger-than-expected start to the fiscal year led analysts to describe the performance as an impressive opening.
The company has been reshaping its supply chain to reduce reliance on China, and it is positioning for international expansion. As Groupe Dynamite celebrates its 50th anniversary, it plans to enter the United Kingdom next year and is close to opening a new U.S. distribution centre. That facility is expected to shorten shipping times, cut costs, improve inventory replenishment and enhance service levels.
Stacie Beaver, president and chief operating officer, said these improvements help ensure customers receive the products they want when they want them and will support the brand’s rollout into new markets. At the same time, the company is renovating its Garage stores with a cleaner, more elevated layout; recent revamps have improved employee engagement and reduced turnover, she added.
Groupe Dynamite shares jumped on the news, reflecting investor enthusiasm about sales momentum and margin improvements.
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Empire Co. reports Q4 profit is up, raises dividend
Empire Co. (TSX:EMP.A)
Fourth-quarter 2024 highlights:
- Profit: $173 million (up from $149 million a year ago)
- Sales: $7.64 billion (up from $7.41 billion)
Empire’s profit and sales are up, and price inflation is “very stable”
Empire Co. Ltd., the parent company behind Sobeys and Safeway, reported increased profit and sales for its fiscal fourth quarter and announced a higher quarterly dividend. The company raised its dividend to $0.22 per share from $0.20, reflecting stronger results and confidence in cash flow.
President and CEO Michael Medline emphasized that Empire’s internal tracking shows price inflation in its business remains within historical norms and is “very stable.” He noted the company’s measured response to pricing pressures and said Empire’s own inflation experience is lower than what public consumer-price indexes indicate for food bought in stores.
For the quarter ended May 3, Empire reported a profit attributable to owners of $173 million, or $0.74 per diluted share, compared with $149 million, or $0.61 per diluted share, a year earlier. Quarterly sales rose to $7.64 billion from $7.41 billion. On an adjusted basis, earnings were $0.74 per diluted share versus $0.63 the prior year.
Same-store sales rose 3% overall. Food same-store sales increased 3.8%, while same-store fuel sales declined 7.8%, mainly due to lower pump prices after changes to the government carbon tax. Medline said Empire expects food inflation to align with long-term averages — historically around 3% — though there may be short-term fluctuations.
To manage the impact of tariffs and supply-chain disruption, Empire has been sourcing more Canadian products, diversifying suppliers beyond the U.S. and engaging suppliers in discussions about cost pressures. The company said the shift toward domestic sourcing is a lasting trend, with many shoppers continuing to prefer Canadian-made goods.
Empire also confirmed progress on a store renovation plan, targeting updates for roughly 20% to 25% of its network between fiscal 2024 and 2026. These renovations aim to modernize stores, improve the customer experience and support long-term sales growth.
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