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DAVIDsTEA's 3Q sales were on the rise, but a widening net loss steeped shares in the red

The tea retailer’s quarterly sales increased 1.5% to $43.7 million in the third quarter
Davids Tea store logo
DAVIDsTEA operates 240 retail stores, offering loose-leaf and prepackaged teas

DAVIDsTEA Inc (NASDAQ:DTEA) reported a widening net loss in its third-quarter results, but quarterly sales were on the rise as the company’s tea made its way to grocery stores earlier this year.

The tea retailer reported a net loss of $0.35 per share compared with a net loss of $0.25 per share in the previous third quarter.

READ: DAVIDsTEA has been steeped in rumors of a possible cannabis-infused beverage

Shares of the Montréal-based company dipped nearly 15% to $1.70 in Thursday after-hours trading.

Quarterly sales totaled $43.7 million, a 1.5% increase compared with sales of $43 million a year ago.

Net loss for the quarter was $9.06 million compared with $6.48 million last year.

The company ended the quarter $18.7 million in cash.

In September, the retailer was steeped in rumors of a possible cannabis-infused beverage, but the company did not confirm anything cannabis-related was in the works.

DAVIDsTEA operates 240 retail stores, offering loose-leaf and prepackaged teas and well as related accessories.

 

Contact Lenore Fedow at [email protected]

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