DavidsTea Teas saw its revenue decline 15.3% year on year in the third quarter, during which the tea merchant reported a net loss of 1.9 million.
The Montreal-based company posted a loss per share of 7 cents for the quarter ended Oct. 30, which compared to net income of 14.5 million, or 54 cents per share, for the same period last year.
DavidsTea’s revenue fell to $ 22.2 million from $ 26.2 million in the third quarter of last year. The company attributed much of the decline to the surge in online sales of mixtures and accessories last year, fueled by the pandemic.
E-commerce and wholesaling accounted for 77.1% of sales in the most recent quarter, up from 84.3% in the same period last year, the company said.
However, in-store sales in the most recent quarter were up $ 1 million over last year, as no stores were open for two of the three months of the third quarter of 2020.
The adjusted net loss – which excludes one-time items including the impact of restructuring activities and wage and rent subsidies received from the Canadian government under COVID-19 assistance programs – amounted to 1.8 million, compared to adjusted earnings of 2.3 million in the prior third quarter.
“Progress in DavidsTea’s transformation can be best measured by increasing sales of 18.5% on a sequential basis,” the chief financial officer and chief operating officer of the company said in a statement. company, Frank Zitella.
“The slight loss in adjusted earnings before taxes, interest, depreciation and amortization (EBITDA) in the third quarter reflects planned investments in digital marketing, technology, distribution and people, with a clear focus on driving revenue growth. ”
The retailer’s creditors approved a plan of arrangement this summer that allowed DavidsTea to emerge from protection under the Companies’ Creditors Arrangement Act in Canada (CCAA) and Chapter 15 of the state bankruptcy code. -United.