DavidsTea reports $10 million net loss in first results since boardroom showdown
DavidsTea is listing as "DTEA" at the Nasdaq MarketSite in New York on June 5, 2015. (THE CANADIAN PRESS / AP, Mark Lennihan)
The Canadian Press
Published Thursday, September 13, 2018 5:09PM EDT
MONTREAL -- DavidsTea has reported a $10 million net loss in the first results since founder Herschel Segal took back control of the company's board.
The Montreal-based retailer says the results for the quarter that ended Aug. 4 works out to a loss of 39 cents per share, compared with a $5.6 million, or 22 cent per share, loss for the same quarter last year.
The company says comparable sales were down 14.8 per cent after its product offering "did not resonate with customers," it was less promotional, and it had less product available for its semi-annual sale.
Segal, whose Rainy Day Investments owns 46 per cent of DavidsTea shares, clashed with other significant shareholders earlier this year on company leadership, board composition, and the direction of the company.
His slate of directors won in a June vote by 54 per cent, prompting CEO Joel Silver to resign after the results were announced and Segal to step into the role of interim CEO.
Segal says in a release that since June the board has worked to make offerings more convenient and increase distribution. In August the company said it would sell its products in Loblaws stores.