DavidsTea losses more than triple in first quarter ahead of proxy battle

DavidsTea losses more than triple in first quarter ahead of proxy battle
Share this article

MONTREAL — Embattled beverage retailer DavidsTea says its net loss more than tripled as sales fell six per cent in the first quarter of its fiscal year.

The Montreal-based company lost $1.2 million for the period ended May 5, compared with a loss of $362,000 a year earlier.

That translated into a loss of five cents per diluted share, versus a loss of one cent in the first quarter of 2017.

Excluding costs of “onerous contracts” and those related to a strategic review and proxy contest, the adjusted net loss was $1.7 million or seven cents per dilute share. A year earlier, it lost $1.1 million or four cents per share.

Revenues fell to $45.8 million from $48.7 million.

Same-store sales — a key retail measure of sales for stores open at least a year — decreased seven per cent.

The results were released ahead of its annual meeting Thursday when investors will decide on a slate of director nominees proposed by the company and another put forward by the co-founder and largest shareholder Herschel Segal.

 

 

The Canadian Press

Related posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.