DAVIDsTEA (DTEA) reported earnings on Thur 10 Dec 2015 (a/h)

** charts before earnings **

 ** charts after earnings **

DAVIDsTEA beats by $0.01, beats on revs; guides Q4 ~in-line :

• Reports Q3 (Oct) loss of CC$0.03 per share, CC$0.01 better than the Capital IQ Consensus of (CC$0.04); revenues rose 32.5% year/year to CC$36.3 mln vs the CC$34.55 mln Capital IQ Consensus.
  • Comps +6.3% vs. slightly above mid single digit growth guidance.
• Co issues guidance for Q4, sees EPS of C$0.42-0.44, excluding non-recurring items, vs. C$0.43 Capital IQ Consensus Estimate; sees Q4 revs of C$70-72 mln vs. C$72.39 mln Capital IQ Consensus; comps slightly above mid-single digit growth.

David's Tea (DTEA) posts first quarter loss, shares crash 25% (6/15)

David’s Tea lost 93.2 million Canadian dollars, an equivalent of $75.7 million. The company also reported a loss of C$7.73 per diluted share. Excluding the IPO and other one-time costs, net income was reported as C$1.1 million, dropping from C$1.4 million in the first quarter of 2014.

The earnings report also pointed to the operating costs of a weaker Canadian dollar as a reason for the loss.

(chart Dec 2016)

Company had it's IPO just 2 weeks ago

DavidsTea (DTEA) began trading on the NASDAQ on 5 June 2015

Shares of DavidsTea Inc, a specialty tea retailer that has grown rapidly in Canada and the United States since its founding in Montreal in 2008, rose as much as 39 per cent in their U.S. debut, valuing the company at about US$600 million.

The company’s IPO raised about US$97 million after the stock was priced at US$19 per share, above the top end of the expected price range of US$17-US$18.

The stock hit a high of US$26.30 in early trading on the Nasdaq on Friday.

DavidsTea is the second Canadian company to list on the U.S. exchange this year. E-commerce software maker Shopify Inc listed its shares on the New York Stock Exchange and the Toronto Stock Exchange last month.

DavidsTea, which sells more than 150 types of tea through 161 stores in Canada and the United States and its davidstea.com website, sold 2.9 million of the 5.1 million shares offered.

Co-founders David and Herschel Segal, along with venture capital firm Highland Consumer Partners, sold the rest.

David Segal raised about US$14.2 million from the offering while his cousin Herschel raised about US$5.1 million.

Herschel Segal, who also founded the Le Chateau Inc clothing chain, retains a 53.4 per cent stake in DavidsTea through his Rainy Day Investments Ltd.

Highland Consumer Partners has 14.7 per cent, while David Segal holds 6.6 per cent.

DavidsTea’s most popular brews – which can be bought packaged or sipped in the store – include Buddha’s Blend, an infusion of jasmine pearls, hibiscus blossoms and green tea.

Most of its teas sell for US$7.00-US$9.50 for a 50g pack, but Japanese gyokuro loose leaf teas sell for as much as US$19.50.

DavidsTea, whose main competitor is Starbucks Corp’s Teavana, has doubled its store count in four years. The company operated 130 stores in Canada and 24 in the United States as of Jan. 31. It expects to open about 25-30 stores in Canada and 10-15 stores in the United States in 2015.

DavidsTea reported a 31 per cent rise in revenue to US$141.9 million for the year ended Jan. 31. Net income was US$6.4 million, compared with a loss of US$6.2 million a year earlier.