- DAVIDs TEA (DTEA -3.9%) reports Q1 revenue decrease of 5.9% Y/Y to C$45.8M & Comparable sales decreased by 7.0%, this overall decline in sales was due to an average decrease in mall traffic and stores located in suboptimal locations.
- E-commerce sales continued to perform well and registered double-digit growth Y/Y.
- Gross profit margin declined 10 bps to 49.6%, the fall was driven by less promotional activity and a shift in product sales mix, which was offset by a deleveraging of fixed costs due to the negative comparable sales.
- Adj. S, G&A expense decreased 1.6% Y/Y to C$25.2M.
- Adj. EBITDA was C$(0.4)M (-126.7% Y/Y) & Cash of C$53.9M.
- Adjusted results from operating activities was C$(2.4)M (+71.4% Y/Y).
- “We have a sharp focus on driving traffic into our stores and to our new online platform, delivering an exceptional customer experience in both. We have a clear plan in place and we are executing on it, but it will take some time to see sustainable results. With the strong management team we now have in place at DAVIDsTEA, I am confident we will get there.” said Joel Silver, President & CEO.
- Previously: DAVIDs TEA EPS in-line, misses on revenue (June 11)
- Now read: Pareteum headed into Russell Microcap Index this month
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