EarningsQ2 2026 Earnings Report
DE:DAT Q2 2026 EPS Results
Actual EPS-€0.02
Consensus EPS―
Beat/Miss―
One Year Ago EPS-€0.04
DE:DAT Q2 2026 Revenue Results
Actual Revenue€7.15M
Expected Revenue―
Beat/Miss―
YoY Revenue Growth+3.31%
Earnings Announcement Details
QuarterQ2 2026
Date09/22/2026
TimeBefore Open
Conference CallTuesday, September 22, 2026
DE:DAT Upcoming Earnings
DAVIDsTEA's next earnings date is estimated for December 22, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:DAT Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive. Management reported stronger brick-and-mortar and Canadian sales, a substantial gross-margin expansion to a record 61.9%, improved EBITDA and adjusted EBITDA, a narrower net loss, completed operational consolidation, and progress toward its store-expansion objectives. The main challenges were the 15.2% decline in U.S. sales caused primarily by trade tensions and tariff-related cross-border pressure, an 8.8% wholesale decline tied to replenishment timing, and lower cash and working capital compared with fiscal 2025 year-end.Company Guidance
Brick-and-Mortar Sales Growth
Brick-and-mortar sales increased 9.6% to CAD 5 million, representing approximately 43.5% of total sales versus 41% a year ago. Comparable store sales grew 4.4%, accelerating from 0.6% growth in the second quarter of last year, with additional contributions from two new Greater Toronto Area stores.
Canadian Sales Growth
Canadian sales grew 5.5% to CAD 10.5 million, representing 91.5% of total revenue. Growth reflected contributions from the Laurier Quebec City store opened in December 2025, the Oshawa store opened in June 2026, and growth across the existing store base.
Gross Margin Expansion
Gross profit increased 9% to CAD 7.1 million, outpacing sales growth, while gross margin expanded by 320 basis points to a record 61.9%. The improvement reflected lower unitized freight and inbound shipping costs and benefits from the internalized fulfillment model, despite tariff-related cost pressures and the transition to U.S.-based fulfillment.
Improved Profitability
EBITDA was CAD 0.2 million, an improvement of CAD 0.5 million. Adjusted EBITDA improved by CAD 0.7 million to CAD 0.5 million, while the net loss narrowed to CAD 1.2 million from CAD 1.6 million a year ago.
Operating Leverage
Selling, general, and administrative expenses as a percentage of sales decreased to 59.8% from 60.9% a year ago, reflecting operating leverage in the rebuilt cost base.
Store-Led Expansion Progress
The company opened two new Greater Toronto Area locations, at Oshawa Center and Square One Shopping Center in Mississauga, and reported strong early performance and very positive consumer response at both stores. Planned fall openings at Southgate Center in Edmonton and Metropolis at Metrotown in Burnaby would bring the total number of new stores since the growth program began to five, including four in fiscal 2026, supporting the objective of reaching 25 locations by year-end.
Attractive New-Store Economics
Management stated that each new location requires an investment of approximately CAD 450,000 and has a payback period ranging between 15 and 18 months.
Potential 2027 Expansion
The company is in the planning phase for 2027, with an initial assessment suggesting store expansion similar to 2026. Management stated that significant white space remains in Canada, with the pace of expansion to be determined by market conditions and the company's capacity to fund growth.
Online Sales Growth
Online sales increased 1.1% to CAD 5.2 million, representing 45% of total sales.
Operational Consolidation Completed
The consolidation of administration, storage, and production under a single modernized roof at the Mont-Royal facility was completed ahead of the peak inventory build season. Management expects to realize the full run-rate benefit of the consolidated footprint beginning in the third quarter.
Product Portfolio and Innovation
DAVIDsTEA highlighted a portfolio of over 200 proprietary blends, single-origin and organic teas, and more than 30 matcha SKUs sourced from premium growing regions in Japan. Its in-house R&D team continues developing recipes aligned with wellness, immunity, sleep, health, and energy needs, including new fall flavors and seasonal gift collections.
Ethical Sourcing and Sustainable Packaging
The company continued its ethical sourcing efforts as a member of the Ethical Tea Partnership, partnered with CleanHub on verified plastic recovery, introduced 100% industrially compostable loose leaf tea packaging for its Garden to Cup collection, and introduced plant-based biodegradable tea sachets.
Customer Engagement and Loyalty
Management said it remains focused on improving customer experiences through retail journeys, improved offerings, and stronger customer connections, while providing Frequent Steepers and Super Steepers with additional perks and benefits.
Balance Sheet Compared With Prior-Year Quarter
Compared with the second quarter of last year, working capital increased by CAD 5.7 million and cash was CAD 2.6 million higher.
Expected U.S. Fulfillment Benefits
The transition of U.S. order fulfillment to a third-party logistics partner in Chicago was completed. Management expects the fully operational platform to reduce cross-border friction and support improved U.S. sales for the balance of the fiscal year.
DE:DAT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed