DAVIDsTEA Earnings Call Transcripts
Fiscal Year 2026
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Fiscal 2025 saw a return to IFRS profitability, driven by strong retail sales growth and disciplined cost control. Store expansion and a new U.S. fulfillment center are set to fuel further omni-channel growth, with a sales CAGR target above 10% over the next three years.
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Brick-and-mortar sales rose 3% year-over-year, offsetting declines in online and wholesale channels due to tariffs and economic headwinds. Net loss narrowed to CAD 0.6 million on sales of CAD 12.6 million, with strong liquidity and plans to double store footprint by 2026.
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Retail and wholesale sales grew year-over-year, offsetting online declines, with net loss stable at $1.6 million. Store expansion and marketing investments are underway ahead of the peak season, while cash position improved year-over-year.
Fiscal Year 2025
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A store-led growth strategy aims to double the Canadian footprint, leveraging a unique in-store experience and operational turnaround to drive profitability. Financial improvements, disciplined expansion, and strong store economics support a projected 10% sales CAGR and higher margins by 2027.
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Q1 fiscal 2025 saw retail sales growth, margin expansion, and a sharp reduction in net loss, with strong cash liquidity and new store openings planned. Online and wholesale channels faced headwinds, but strategic hires and cost efficiencies support a positive outlook.
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Fiscal 2024 saw a turnaround with improved profitability, operational transformation, and strong omnichannel momentum. Revenue grew nearly 2% year-over-year, with adjusted EBITDA swinging positive and gross margins rising. Growth targets and margin expansion are set for 2025.
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Sales grew 15.6% year-over-year in Q3 2024, with strong gains across all channels and improved gross margin. Net loss narrowed to CAD 1.6 million, and cost-saving initiatives are expected to drive profitability by 2025.
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Q2 2024 saw 12.8% sales growth year-over-year, a gross margin of 47.3%, and a reduced net loss of CAD 1.5 million. Brick-and-mortar and online sales both grew, with new store openings and cost controls supporting a positive outlook for the second half of the year.
Fiscal Year 2024
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Q1 2024 sales declined 6.1% year-over-year to CAD 13.4 million, with brick-and-mortar sales up 6.2% and online and wholesale channels down. Gross margin improved, but net loss widened to CAD 2.6 million. Expansion in U.S. wholesale and ready-to-drink products are key growth drivers.