Debt-Free DTEA: The Turnaround Has Begun!!!Excellent results despite the fact that Q2 is DTEA's slowest quarter. DTEA's tea business is seasonal with Q2 being the slowest quarter.
DTEA is back to revenue growth mode in Q2 and stronger revenue growth continues in Q3, according to the company:
“We are pleased to report that DAVIDsTEA reached a key inflection point in the second quarter of 2024 with sales increasing by 12.8% year-over-year,” said Sarah Segal, Chief Executive Officer and Chief Brand Officer, DAVIDsTEA. “We are grateful for the trust of our loyal consumers who seek out the best flavour profiles available on the market as we continue to innovate and introduce new and incredible tasting tea blends for consumers to enjoy.”
“Sales momentum continues into the early third quarter with revenues up more than 18% compared to the same period in 2023. We are excited to mark our renewed focus on brick-and-mortar retail with the opening of a new location in the Royalmount Mall in Mount Royal, Quebec, and look forward to launching a new store in downtown Montreal in early November, raising the total number of flagship stores to 20. As we prepare for the revenue-intensive third and fourth quarters, our focus remains on delivering excellent value, service and innovation to our consumers,” added Ms. Segal.
Moreover, DTEA remains debt-free and ended Q2 with $6.7 million in cash. DTEA will increase its cash in Q3 thanks also to the new store and will boost its cash in Q4, because Q4 traditionally is its strongest quarter!