Leading Canadian Specialty Tea Retailer Reported Net Loss of $20.3 million for the nine months ended November
In a time when specialty tea is emerging in North America, DAVIDsTEA Inc. (Nasdaq:DTEA) (DAVIDsTEA or “the Company”), reported consolidated net loss of $ 9.1 million ($0.35 per diluted share) for the third quarter 2018 compared to a net loss of $6.5 million ($0.25 per diluted share) for the third quarter 2017. Net loss for the nine months ended November 3, 2018 was $20.3 million ($0.78 per diluted share) compared to a net loss of $12.4 million ($0.48 per diluted share) for the nine months ended October 28, 2017.
The Company’s adjusted net loss1 was $7.4 million ($0.28 per diluted share) for the third quarter 2018 compared to a loss of $4.5 million ($0.17 per diluted share) for the third quarter 2017 and a loss of $14.1 million ($0.55 per diluted share) for the nine months ended November 3, 2018 compared to a loss of $9.9 million ($0.38 per diluted share) for the nine months ended October 28, 2017.
“Despite a decline in same store sales, we are seeing favourable trends in several areas of the business,” stated Herschel Segal, Executive Chairman and Interim Chief Executive Officer. “We continue to have great confidence in our team, in our brand, our growth opportunities and our capacity to improve our financial results.”
Mr Segal added, “Our new executive leadership is squarely focused on restoring profitability. We expect to achieve immediate efficiency gains in our purchasing and operations, optimize our e-commerce platform and alternative sales channels, and strengthen our leadership in the tea industry.”
In late 2017 we heard the sad news of Teavana store closure. Off-line tea retail concept seems to be an outdated one. By the mean time, tea serving places (Service industry) have started to make profits. The quality of tea, aggressive distribution strategy, staff’s lack of knowledge on tea may also have led to this situation. Also remember we are in an era when Baristas are expected to prepare a perfect cup of tea instead of a tea master.
References
1.Original Post: https://globenewswire.com/news-release/2018/12/13/1667014/0/en/DAVIDsTEA-Announces-Third-Quarter-Fiscal-2018-Financial-Results.html
2.Company Website: https://www.davidstea.com/us_en/home/
