Canada's DAVIDsTEA Q1 sales fall 5% on cautious spending, tariff headwinds
Canada's DAVIDsTEA Q1 sales fall 5% on cautious spending, tariff headwinds
Overview
Canada tea retailer's Q1 sales fell 5% yr/yr amid cautious consumer demand and trade headwinds
Gross margin held at 59.7% and adjusted EBITDA margin expanded about 100 bps yr/yr
Net income improved to C$0.1 mln from a loss a year earlier
Outlook
DAVIDsTEA expects Canadian store network to reach 25 locations by year-end
Company expects sequential recovery in U.S. sales as new fulfillment model supports growth
Capital expenditures expected to increase as four new stores open during Fiscal 2026
Result Drivers
CAUTIOUS CONSUMER - Co said softer sales in Canada reflected a more cautious consumer environment and macroeconomic uncertainty
TARIFF HEADWINDS - U.S. sales fell due to trade tensions and tariff-related friction on cross-border e-commerce, with a partial-quarter transition to a new U.S. fulfillment partner
COST DISCIPLINE - Lower marketing spend and reduced SG&A supported margin expansion despite lower sales
Company press release: ID:nNFCdL868
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Sales |
| C$13.02 mln |
|
Q1 EPS |
| C$0 |
|
Q1 Net Income |
| C$61,000 |
|
Q1 Adjusted EBITDA |
| C$1.6 mln |
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(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.)