The first quarterly financial performance revealed by Groupe Dynamite since its IPO last month exceeds expectations.
Posted at 8:38 a.m.
The Montreal women’s clothing retailer generated sales of 259 million during the months of August, September and October, up 18% year-on-year.
Management indicated last month that revenues for the quarter would be in the range of 255 million to 260 million.
Same-store sales rose 10.1%, better than the 9.2% pace analysts had hoped for. However, this is a slowdown compared to the 15.4% recorded during the first half of the year, notes analyst Martin Landry of the Stifel firm.
“Nevertheless, this is a high rate which suggests continued gains in market share,” he adds.
Net profits of 40.4 million were generated while they reached 35 million in the same period last year. Adjusted net profits of 41 cents per share for the quarter are up 22% year-over-year and above analysts’ consensus of around 38 cents.
Operating profit of 87 million far exceeded market forecasts of 81 million.
“After an excellent summer season, we maintained our momentum in the third quarter thanks to strong growth in products and same-store sales,” comments the CEO and Chairman of the Dynamite Group, Andrew Lutfy, in a press release.
Six stores were opened in the United States and Canada under the two brands (Dynamite and Garage) during the quarter, bringing the number of stores to 299.
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