(Bloomberg) — Women’s fast-fashion retailer Groupe Dynamite Inc. raised prices by 9% over the past year and plans to increase them at twice the rate of inflation for the foreseeable future, its chief executive officer said. Shares on Tuesday rose by the most since the company went public last year after it reported strong first-quarter results, including higher revenue. “If you extrapolate, the cost of our goods with or without tariffs is really a negligible piece of the average unit,” CEO Andrew Lutfy said in an interview. Dynamite shifted production away from China during its first quarter to avoid higher tariffs on US imports. “Most of our goods were manufactured in China,” Lutfy said. Now, products going to the US are “actually the minority of our goods — we cut it by 50%, which is ridiculously agile.” Transferring production to Asian countries such as Bangladesh and Cambodia came with one downside: “There’s been such a rush to those other countries that prices have actually gone up in those other markets. All the supply-chain inefficiencies are showing up,” Lutfy said, adding the company’s input costs are up “marginally.” The Mount Royal, Que.-based firm owns about 300 stores in Canada and the US under the Garage and Dynamite banners. The firm’s gross margin was 62.1% in the quarter ended May 3, down by 1.8 percentage points from the same period a year ago due mainly to the impact of US levies. During the quarter, revenue increased by 20% to C$227 million ($167 million) from the previous year, and adjusted diluted earnings were 25 Canadian cents per share, beating analyst estimates by 3 cents, according to data compiled by Bloomberg. The retailer revised its 2025 outlook for comparable store sales growth to a 7.5%-to-9% range from a 5%-to-6.5% range. Lutfy said Dynamite can perform well in uncertain times because it sells relatively inexpensive apparel. “Here in an environment where no one wants to pile on debt right now, we’re at the other end of that spectrum, which is affordable indulgences. So a C$30 top is just going to make you happy. It’s the price of a martini.” “Groupe Dynamite product is resonating, real estate optimization is improving store productivity, and pricing/sourcing mitigation actions are offsetting tariffs,” TD Cowen analyst Brian Morrison wrote in a note to clients. “Its solid outlook supports our view that Groupe Dynamite’s valuation is too punitive.” Dynamite’s stock rose by as much as 18% in Toronto Tuesday, but remains below its initial public offering price of C$21. It was C$19.37 at 2:53 p.m. “We’re a new company, we’re a new IPO and they want to see sustained performance,” Lutfy said of the market’s reaction so far. More stories like this are available on bloomberg.com ©2025 Bloomberg L.P. in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. Follow these steps: 1. **Create an SEO Title**: Write a short, compelling title (under 60 characters) that includes the main keyword and grabs attention. 2. **Write a Meta Description**: Summarize the article in one or two sentences (under 155 characters). Make it engaging and include the primary keyword naturally. 3. **Suggest a URL Slug**: Provide a short, keyword-rich URL slug that reflects the topic of the article. 4. **Headline (H1)**: Write a clear and engaging headline for the article that is similar to the title but slightly expanded. 5. **Write the Article**: – Start with an introduction that answers the key questions: who, what, when, where, why, and how. – Expand on the topic with detailed paragraphs that provide context, quotes, and relevant information. – Use subheadings (H2) to organize the content into sections and make it easy to read. – Include related keywords naturally throughout the article. – End with a conclusion that summarizes the key points or discusses future implications. 6. **Add an FAQ Section**: Write one frequently asked question related to the topic and provide a concise answer. Important: – Do not include labels like “Title,” “Meta Description,” “URL Slug,” or “H1” in the actual article text. – Keep all SEO elements separate from the main content. – Ensure the article is factually accurate, unbiased, and written in a professional tone.
Clothing retailer Dynamite has increased its prices by 9% due to ongoing trade tensions.
