Davidstea Inc. ( (DTEAF) ) has released its Q3 earnings. Here is a breakdown of the information Davidstea Inc. presented to its investors.
DAVIDsTEA Inc., headquartered in Montreal, Canada, is a leading tea merchant in North America, specializing in proprietary loose-leaf teas, pre-packaged teas, and tea-related accessories through various distribution channels including e-commerce, wholesale, and retail stores.
In the third quarter of fiscal 2024, DAVIDsTEA reported strong financial performance with sales increasing by 15.6% to $14.0 million compared to the same period last year. The company also improved its gross profit margin significantly to 51.5%, up from 37.9% in the previous year.
Key financial metrics showed positive trends with a net loss of $1.6 million, an improvement from a $3.7 million loss the previous year, and an adjusted EBITDA of $0.8 million compared to a negative $2.5 million last year. Strategic highlights included the opening of two flagship stores in Montreal and a successful transition to a more cost-effective IT platform, despite a $3.1 million write-off.
The company remains optimistic about its future, underpinned by a commitment to expanding its store footprint and driving sustainable, profitable growth. Management aims to leverage operational efficiencies and supply chain strategies to maintain momentum and achieve profitability in 2025.