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      What Has Been Hurting DTEA Stock In Pre-Hour Trades? - Stocks Telegraph

      By ST Staff

      Published on

      June 16, 2021

      8:55 AM UTC

      What Has Been Hurting DTEA Stock In Pre-Hour Trades? - Stocks Telegraph

      Shares of the leading North American tea merchant DAVIDsTEA Inc. (DTEA) is trading -6.59% lower at $4.96 in pre-market trade. Over the past session, DAVIDsTEA stock closed at $5.31, down 2.21% or $0.12. Within the past year, DTEA stock has increased 342.50%, and within the last week it has gone up 22.92%. DTEA stock is falling after release of its quarterly results.

      What has been the performance of DTEA?

      DAVIDsTEA has a wide selection of high-quality proprietary loose-leaf teas, pre-packaged teas, tea sachets, tea-related accessories, and gifts. On and the Amazon Marketplace, DTEA offers e-commerce services. In addition to serving wholesale clients, which include over 2,500 grocery stores and pharmacies, DTEA has 18 company-owned stores in Canada. DTEA’s proprietary tea blends and single-origin teas and herbs are all offered exclusively by the company.

      DAVIDsTEA today reported its results for the quarter ended May 1, 2021. The amounts given are in Canadian dollars.

      For the three-months ended May 1, 2021:

      • From $32.2 million in the prior year quarter, DTEA’s sales decreased by 27.9%, or $9.0 million to $23.2 million.
      • A sales decline of approximately 26.6%, or $3.9 million, contributed to the decrease in DTEA’s gross profit to $10.8 million.
      • Sales, general, and administrative expenses (“SG&A”) decreased by $12.4 million or 57.5% to $9.2 million.
      • The operating activities generated $3.2 million in earnings for DTEA, compared to a loss of $44.4 million during the prior year quarter.
      • DTEA posted net income of $3.2 million in the most recent quarter against a loss of $45.8 million a year earlier.
      • Compared with the prior-year first quarter, DTEA’s fully diluted earnings per common share were $0.12, compared with a loss per common share of $1.76.

      DTEA is also impacted by:

      Amounts related to the purchase of goods or services by DAVIDsTEA (DTEA) as of May 1, 2021 are legally enforceable and are legally binding on the Company. This does not include additional amounts based on sales, taxes, and other costs. The DTEA anticipates that the $13.0 million, net of $7.2 million of advances, will be covered within 12 months.

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