DAVIDsTEA Inc. (DTEA) shares plunged 7.77% in after-hours on Tuesday, December 14, 2021, and closed the daily trading at $2.85. Even in the regular trading session on Tuesday, DTEA’s stock lost 0.64%. DTEA shares have risen 69.78% over the last 12 months, and they have moved down 14.40% in the past week. Over the past three months, the stock has gained 10.36%, while over the past six months, it has plummeted 40.80%.
Let’s see is there any recent news behind its poor performance on Tuesday?
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DTEA latest news
On December 14, 2021, DAVIDsTEA Inc. (DTEA) released its third-quarter results for the three months ended October 30, 2021 (all amounts are expressed in Canadian dollars).
Q3 2021 financial highlights
- DTEA reported total sales of $22.2 million for Q3 2021 compared to $26.2 million in the prior-year quarter.
- Its gross profit was $8.6 million in Q3 2021 compared to $2.2 million in Q3 2020.
- It suffered a net loss of $1.9 million in Q3 2021 compared to a net income of $14.5 million in Q3 2020.
- Fully diluted loss per common share was $0.07 in Q3 2021 compared to fully diluted earnings per common share of $0.54 in the prior-year quarter.
- EBITDA was negative $778 thousand in Q3 2021 compared to $15.3 million in the prior-year quarter.
- The company ended the quarter with $13.4 million of cash, primarily held by major Canadian financial institutions.
DTEA agreement with WIPTEC
On December 14, 2021, DAVIDsTEA Inc. (DTEA) announced its partnership with WIPTEC pick, pack & ship (WIPTEC), a leading 3PL provider with state-of-the-art facilities in Longueuil, Quebec, to outsource all of its product warehousing, distribution, and shipping activities for Canada and the U.S.
This new logistic model will significantly enhance DAVIDsTEA distribution capabilities and improve the customer experience across North America.
DTEA and BetterSleep collaboration
On December 08, 2021, DAVIDsTEA Inc. (DTEA), announced a new partnership with wellness and sleep tracking app BetterSleep (formerly Relax Melodies), uniquely designed to help people stress less, and sleep better.
According to the agreement, members of DAVIDsTEA’s Frequent Steeper™ program will receive an exclusive offer to try BetterSleep free of charge, for the first 30 days.
DTEA sustainable Tea community project
On November 30, 2021, DAVIDsTEA Inc. (DTEA), announced its commitment to more sustainable and ethical tea industry, with the launch of its new summer C.A.M.P by DAVIDsTEA x Ethical Tea Partnership project. This project will support the tea-growing community in Zhejiang, China, one of the regions where it sources premium black and green tea bases for some of its top blends.
Conclusion
The recent Q3 2021 financial results were the reason behind its poor performance on Tuesday and it can further go down in the coming trading sessions.
