DavidsTea Inc (NYSE:DTEA) reported a Q3 loss of $0.34 per share, versus a year-ago loss of $0.33 per share. Its sales fell 9.5% to $39.5 million. All figures are in Canadian dollars.
The Montreal-based company reported on Friday that sales from its e-commerce and wholesale channels increased $1.1 million, or 14.1%, driven by the increased demand in our grocery distribution channel and by greater online adoption.
Offsetting this was a decline in retail sales of $5.3 million and a decline of $5.0 million, or 14.1%, in comparable same store sales.
Operating loss decreased by $1.4 million to $9.3 million. Excluding the impact of IFRS 16, loss from operating activities would have amounted to $12.1 million, an increase of $1.4 million from the prior year quarter.
The increase loss is mainly due to the de-leveraging of fixed costs due to negative comparable store sales and the impairment of right-of-use assets offset partially by the absence of Adjusted Items incurred in the comparable quarter of Fiscal 2018.
Selling, general and administration expenses increased by $1.6 million to $30.7 million in the three months ended November 2, 2019 from the prior-year quarter.
EBITDA, which excludes non-cash and other items in the current and prior periods, was negative $4.5 million in the quarter ended November 2, 2019, compared to negative $8.6 million in the prior year quarter.
Adjusted EBITDA for the quarter, excluding the impact of IFRS 16, amounted to negative $8.0 million compared to negative $6.2 million in the prior year quarter.
Shares slumped 16 cents, or 9.5%, to $1.53
