Canada's DAVIDsTEA Q4 net income more than doubles as brick-and-mortar sales recover

DavidsTea

29/04/2026 12:25

Corrects adjusted EBITDA figure to C$5.4 mln, from C$4.15 mln, in the Key Details table; and corrects third overview bullet point to say adjusted EBITDA rose, not nearly doubled

Overview

Canada tea retailer's Q4 sales rose 1.2% as brick-and-mortar revenue climbed nearly 12%

Q4 net income more than doubled year-over-year, supported by higher gross margins and cost cuts

Adjusted EBITDA for Q4 rose from a year earlier

Outlook

DAVIDsTEA plans to open four new stores in fiscal 2026, raising store count to 25

Company expects improved U.S. sales in fiscal 2026 due to new Chicago fulfillment partner

Capital expenditures expected to increase in fiscal 2026 to fund store opening program

Result Drivers

BRICK-AND-MORTAR RECOVERY - Q4 brick-and-mortar sales rose 11.9%, driven by in-store holiday shopping and new store openings in Quebec

GROSS MARGIN EXPANSION - Q4 gross profit margin rose to 58.9%, helped by more full-margin holiday products and lower shipping and fulfillment costs

U.S. SALES DECLINE - U.S. revenue fell 25% in Q4, mainly due to trade tensions and tariff-related headwinds affecting cross-border e-commerce

Company press release: ID:nNFCc3Vb3X

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
C$23.51 mln
Q4 Adjusted EPS
C$0.13
Q4 Net Income
C$5.27 mln
Q4 Adjusted EBITDA
C$5.4 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.)