Davids Tea reports a jump in Q1 sales and profits
Canadian specialty tea retailer Davids Tea reported a healthy jump in revenue and earnings when announcing the first quarterly results of 2016. During the period, sales were up by 24.3% overall and comparable store sales, excluding new store openings, increased by 4.9%. Net income was C$1.5 million compared a loss of C$93.2 million in same quarter last year, which was associated with IPO costs. The company added 5 new stores this past quarter and expects to open 11 more in the next three months and about 20 in the two subsequent quarters. Davids Tea expects annual sales to reach C$215-220 million in fiscal 2016 with net income just below C$15 million.