Canadian tea retailer DAVIDsTEA Q2 sales rise on store expansion

By Reuters News


Overview

  • Canada specialty tea retailer's fiscal Q2 sales rose 3.3% yr/yr, driven by store growth

  • Gross margin improved to 61.9%, reflecting lower freight costs and internalized fulfillment benefits

  • Net loss narrowed to C$1.2 mln from C$1.6 mln in prior-year quarter


Outlook

  • DAVIDsTEA plans to reach 25 stores by year-end, with two more openings this fall

  • Company expects operational and cost efficiencies from Montreal consolidation starting in Q3

  • Management expects improved U.S. sales in H2 2026 after transition to U.S.-based fulfillment


Result Drivers

  • STORE EXPANSION - Sales growth was driven by higher brick-and-mortar sales, including contributions from new stores

  • GROSS MARGIN GAINS - Gross margin improved due to lower unitized freight and inbound shipping costs and internalized fulfillment model

  • U.S. SALES DECLINE - U.S. sales fell due to trade tensions and tariff-related pressure on cross-border e-commerce


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

C$11.51 mln

Q2 Adjusted Loss Per Share

C$0.03

Q2 Loss Per Share

C$0.04

Q2 Net Loss

C$1.22 mln


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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