DavidsTea Posts Rebound
CBJ — DavidsTea managed to turn in a $2.6-million profit in its latest quarterly results despite a more than 40% decrease in sales during the pandemic and the closure of stores.
The now insolvent Montreal-based beverage company earned 10 cents per diluted share for the period ended August 1. That compares with a loss of 44 cents per share totaling about $11.3 million during the same quarter in 2019.
Sales were down about $16 million to $23 million from $39 million in the prior year’s quarter but were up 35% from this year’s disastrous opening quarter.
Sales came from a 190% increase in e-commerce and wholesale revenues.
As of now, 18 stores have reopened in Canada. DavidsTea has received court protection from its creditors while it restructures to what it hopes will be a successful operation spearheaded by digital initiatives.