News Spotlight: DAVIDsTEA Inc. (NASDAQ:DTEA)
DAVIDsTEA Inc. (NASDAQ:DTEA) changed -5.44% to recent value of $0.86. The stock transacted 1123301 shares during most recent day however it has an average volume of 205.02K shares. It spotted trading -62.44% off 52-week high price. On the other end, the stock has been noted 174.22% away from the low price over the last 52-weeks.
On Sept. 21, 2020, DAVIDsTEA Inc. (NASDAQ:DTEA) a leading tea merchant in North America, reported its second quarter results for the period ended August 1, 2020. All dollar amounts are expressed in Canadian dollars.
Second quarter results reflect the solid performance of our online retailing and wholesale distribution activities as we accelerate our transformation towards a digital first strategy. We are very pleased by the momentum experienced in the first quarter carrying over to the second quarter, resulting in sequential sales growth of 35%. Consumers are responding positively to the online experience we offer and continue to enhance. We are confident that we are well-positioned to execute our business plan and to sustain a return to profitability once the ongoing CCAA process and our transformation is complete, said Frank Zitella, COO and CFO.
Digital First Strategy
The Company continues to pivot to a digital first strategy focused on promoting customer migration from retail store to online and wholesale channels, and to generate organic growth. Several key initiatives have been implemented or are underway in support of this strategy. Since the beginning of the year, the Company has continued to enhance the customer experience via davidstea.com, including the ability to virtually connect with its tea guides, providing a human and personalized interaction. This is in addition to the capabilities of DAVI, the virtual assistant that helps customers shop, discover new collections, stay in the loop with the latest tea accessories, and much more. From a product development and go-to market standpoint, DAVIDsTEA also continues to enhance its ability to quickly launch new tea blends and better anticipate and adapt to the needs of its customers. The Company’s digital first strategy will be supported by a network of 18 retail stores located across Canada, with a concentration in the Ontario and Quebec markets, re-opened subsequent to second quarter end on August 21, 2020.
DTEA has a gross margin of 52.50%. Its earnings per share (EPS) expected to touch remained 8.50% for this year.
The company has 26.09M of outstanding shares and 14.07M shares were floated in the market. According to the most recent quarter its current ratio was 1.7 that represents company’s ability to meet its current financial obligations. The price moved ahead of -12.42% from the mean of 20 days, -6.49% from mean of 50 days SMA and performed -16.57% from mean of 200 days price. Company’s performance for the week was -13.62%, -13.62% for month and YTD performance remained -40.84%.