DavidsTea swings to $1.86 million loss in Q3

DavidsTea Inc. swung to a loss in its latest quarter as revenues decreased 15% from the prior year.

The Montreal-based beverage company says it lost $1.86 million or seven cents per diluted share in the third quarter, compared with a profit of $14.5 million or 54 cents per share a year earlier.

The adjusted net loss excluding one-time items such as restructuring activities, wage and rent subsidies was $1.8 million or seven cents per share, compared with a profit of $2.3 million or nine cents per share in the third quarter of 2020.

Revenues for the three months ended Oct. 30 were $4 million lower at $22.2 million with e-commerce and wholesale sales down 23% to $17.1 million. However, sales were up 18.5% from the second quarter.

Chief executive Sarah Segal says the company continues to expand its digital footprint and wholesale business with products available in more than 1,200 Loblaw grocery and pharmacy stores.

It has also opened six holiday pop-up shops in addition to its 18 retail stores in Canada.