Canadian tea retailer DAVIDsTEA Q2 sales rise on store expansion

DavidsTea

22/09/2026 12:10

Overview
Canada specialty tea retailer's fiscal Q2 sales rose 3.3% yr/yr, driven by store growth
Gross margin improved to 61.9%, reflecting lower freight costs and internalized fulfillment benefits
Net loss narrowed to C$1.2 mln from C$1.6 mln in prior-year quarter

Outlook
DAVIDsTEA plans to reach 25 stores by year-end, with two more openings this fall
Company expects operational and cost efficiencies from Montreal consolidation starting in Q3
Management expects improved U.S. sales in H2 2026 after transition to U.S.-based fulfillment

Result Drivers
STORE EXPANSION - Sales growth was driven by higher brick-and-mortar sales, including contributions from new stores
GROSS MARGIN GAINS - Gross margin improved due to lower unitized freight and inbound shipping costs and internalized fulfillment model
U.S. SALES DECLINE - U.S. sales fell due to trade tensions and tariff-related pressure on cross-border e-commerce

Company press release: ID:nNFC2Fw87q

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
 
C$11.51 mln
 
Q2 Adjusted Loss Per Share
 
C$0.03
 
Q2 Loss Per Share
 
C$0.04
 
Q2 Net Loss
 
C$1.22 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.)