Post by
stockfy on Nov 13, 2024 8:17am
DTEA: Disappointing web traffic persists for another QUARTER
Website traffic for October 2024 was out a few days ago and DTEA's website traffic for October 2024 was very disappointing for another month in a row.
Specifically, visits in Oct 2024 were 739K, so they were largely flat compared to prior year period.
Unfortunately, its website traffic was largely flat below 500K visits for Sep and Aug 2024 too compared to prior year period.
Based on this flat YoY website traffic, I believe DTEA will burn cash and will record another big loss in Q3 2024.
DTEA burned cash and reported a loss of $3.7 million in Q3 last year, so I believe this year's Q3 will be no different.
Last year's Q3 results are below:
https://www.globenewswire.com/news-release/2023/12/12/2794590/0/en/DAVIDsTEA-Reports-Financial-Results-for-Third-Quarter-of-Fiscal-2023.html
"Net loss amounted to $3.7 million compared to $4.7 million in third quarter of 2022".
DTEA has to increase its website traffic asap to significantly increase its online revenue and generate positive operating cash flow and become profitable. Its online business plays a key role in its results because it's the biggest segment. So I believe DTEA needs to hire much better and much more competent marketing managers and chief digital offers.