Ms. Stacie Beaver reports

GROUPE DYNAMITE REPORTS STRONG HOLIDAY PERFORMANCE AND UPDATES FISCAL 2025 GUIDANCE AHEAD OF THE ICR CONFERENCE

Groupe Dynamite Inc. had comparable store sales growth of 30.8 per cent for the first nine weeks of the fourth quarter (Q4) of the company's fiscal year ending Jan. 31, 2026 (fiscal 2025), ended on Jan. 3, 2026. On a year-to-date basis, and with only four weeks remaining in fiscal 2025, comparable store sales growth stands at 26.6 per cent, also as at Jan. 3, 2026.

• Comparable store sales growth of 30.8 per cent in the first nine weeks of Q4 fiscal 2025.
• Full year 2025 guidance updated on comparable store sales growth (26.5 per cent to 27.0 per cent) and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin (36.0 per cent to 37.0 per cent).
• Significant on-line revenue growth, outpacing brick-and-mortar revenue growth in Q4 to date.
• United Kingdom e-commerce platform and U.K. brick-and-mortar launches planned for the latter part of Q1 2026.
• Total year-end store count expected to be at 307, reflecting 20 openings and nine net new stores.

On that basis, Groupe Dynamite is updating fiscal 2025 comparable store sales growth guidance to a range of 26.5 per cent to 27.0 per cent. Furthermore, based on strong year-to-date performance and improved visibility for the remainder of the fiscal year, the company is raising by 100 basis points the lower end of its fiscal 2025 adjusted EBITDA margin guidance to 36.0 per cent, with the range now expected to be between 36.0 per cent and 37.0 per cent.

Turning to digital, during those same nine weeks, on-line revenue growth significantly outpaced brick-and-mortar revenue growth, resulting in a higher on-line penetration rate versus the prior year. This performance underscores strong customer engagement across digital channels. As a reminder, the company's comparable sales metric reflects the performance of the brick-and-mortar channel only.

With respect to real estate activity, the company expects 20 gross store openings and 11 store closures, resulting in nine net new store openings for fiscal 2025 and bringing total expected store count to 307 at year-end. All store openings to date were under the Garage banner and located in the United States.

Lastly, the company is revising its previously communicated fiscal 2025 capital expenditure guidance to a range of $80.0-million to $90.0-million, from $85.0-million to $95.0-million, mainly reflecting payments timing.

"Our values-led culture continues to drive disciplined execution, resulting in strong holiday performance. This momentum, supported by our selective real estate strategy and rising digital engagement, is driving meaningful margin expansion and reflects the strength of our luxury-inspired operating model. As we close out fiscal 2025, we're preparing to launch U.K. e-commerce in Q1 and look forward to opening our first U.K. stores also later in Q1," added Stacie Beaver, president and chief operating officer.

The attached table outlines the company's revised financial annual guidance ranges for fiscal 2025, replacing the company's previously disclosed guidance.

Groupe Dynamite intends to release its full financial results for Q4 and fiscal 2025 on or around Wednesday, April 1, 2026, before markets open, followed by a conference call with management to discuss the results on the same day. All information regarding the earnings call will be provided at a later date. The company also intends to provide financial and operational guidance for the 52-week period ending Jan. 30, 2027, at the same time as the results for Q4 and fiscal 2025 results are announced.

All figures and information referred to herein with respect to Q4 and fiscal 2025 are preliminary and are subject to change as our financial results are finalized.

About Groupe Dynamite Inc.

Groupe Dynamite is a growth-oriented company striving for excellence in the fashion industry. Operating retail stores and digital experiences under two complementary and spirited banners -- Garage and Dynamite -- the company offers a wide range of women's fashion apparel, catering to the needs of Generation Z and Millennials. With leading key operating metrics and a commitment to innovation and disciplined execution, the company is proud to continue its ambitious growth plans. Guided by its mission, "Empowering YOU to be YOU, one outfit at a time," we are a values-led, inclusive organization committed to inspiring confidence and self-expression. Proudly rooted in the chic and vibrant city of Montreal, the company's culture, values and distinct brands position the company to shape the future of fashion while attracting and inspiring the next generation of leaders and creators. The company's ownership mentality and entrepreneurial mindset is reflected in its shared success program, through which all of Groupe's 6,500 employees have ownership exposure. This alignment of interests and values fosters collaboration, fuels innovation, and creates meaningful long-term value for the company's team and stakeholders alike.

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