Groupe Dynamite Inc.

Good morning, ladies and gentlemen, and welcome to the Group Dynamite fourth quarter and fiscal 2025 results conference call. At this time, all lines are in listen-only mode, and the conference is being recorded. Following the presentation, we will conduct a question and answer session, and we do ask that you please limit yourself to one question and then return to the queue. If at any time during this call you require immediate assistance, please press star zero for the operator. And I would like to turn the conference over to Alex Limousani, Manager, Investor Relations and Corporate Finance at Group Dynamite. Please go ahead.

Thank you and good morning, everyone. Joining me on the call are Andrew Letfi, Chief Executive Officer and Chair of the Board, Stacey Beaver, President and Chief Operating Officer, and J.P. Lachance, Chief Financial Officer. This morning, Group Dynamite released its financial results for the 13 and 52-week periods ended January 31st, 2026. The press release and related disclosure documents are available in the investor section of our corporate website at groupdynamite.com and on CDR+. We will begin the call with short remarks by management, followed by a question and answer period with financial analysts only. A replay of this webcast will be available shortly after the conclusion of the call. Before we begin, I would like to refer you to slide two of our Q4 2025 investor presentation, also available in the investor section of our website, for our full statement on forward-looking information and to the presentation's appendix for your reconciliation of non-IFRS to IFRS financial measures. I will now turn the call over to Andrew.

Thanks, Alex, and good morning. I'd like to welcome you, our valued participants, We know your time is precious, so thank you for prioritizing us in your busy schedules. As most of you know, Q4 marks a strong finish to what has been a defining year for Group Dynamite. Fiscal 25's performance was nothing short of exceptional. Notwithstanding a great number of challenges, most of which were outside our control, our performance truly exceeded expectations. As we often say, first who, Then what? Well, our agile GDI family, living our shared values, proved to be the right who's delivering incredible results, proactively mitigating risk, and often enough, turning them into opportunities. As for the numbers, they speak for themselves. This was both a record Q4 and fiscal year, putting us in a class of our own. Q4's comparable brick-and-mortar sales were up 30.4% and 26.7% for the year. Q4's adjusted dividend margin was 36.6%, up a staggering 740 basis points. And for the year, 36.5, up 490 basis points. Q4's gross margin was a healthy 63%, up 400 basis points, and 63.8% for the year, up a remarkable 100 basis points. One metric which is near and dear to our hearts, inventory turns reached an astonishing 9.9 times. It's the singular metric that speaks volumes to taking the fashion risk out of fashion. Staying with numbers, we're also pleased to report Eight weeks into Q1, comparable brick-and-mortar sales are up 28%. Same store sales. But enough of the quantitative. In these tumultuous times, what is clear is we are delivering on emotion. The brand heat is real. Alex and Rachel are happy. And speaking of happy... Pleased to report, our two best store openings in GDI history were recorded most recently with the opening of Garage Blue Water and our garage flagship on Oxford Street. These two stores joined the UK e-commerce platform, which has been live since the beginning of February. It's very early days, but incredibly encouraging to see how upset this UK Alex is for her garage. And allow me, to make a big shout-out to the teams who brought this all to life. Congratulations. You should be proud. You guys crushed it. Et pour les Québécois, permis-nous. Moi, professionnellement, qui ai grandi à la place Versailles, je suis particulièrement fier d'avoir osé grand, d'avoir choisi le gros pain, d'avoir visé bien au-delà de ce qui semblait possible au départ. Ce fut un immense honneur de couper le ruban d'ouverture de notre magasin phare sur la rue Oxford Street à Londres, un moment marquant que j'ai tenu à partager avec mon équipe en français comme en anglais. Nous sommes un fleuron d'exportation fièrement québécois. Cela dit, une part importante de notre création de valeur repose sur l'ampleur et la croissance exceptionnelle de nos activités aux États-Unis. Un marché que nous avons su conquérir avec discipline et ambition au cours des 20 dernières années. Mais il faut être lucide. Une économie performante ne peut prospérer sous un cadre trop lourd. Un gouvernement trop imposant finit par nuire à ceux qui créent la richesse Pour bâtir de façon durablement, il faut un environnement qui favorise l'initiative, l'investissement et la croissance.