DAVIDsTEA Inc., a leading North American tea merchant, announced Tuesday its financial results for the second quarter of fiscal 2025 ended August 2, 2025. Sales reached $11.1 million, up 0.5% year-over-year. Gross profit margin attained 47.2%, down marginally by 0.1%. Net loss remained stable at $1.6 million. Adjusted EBITDA was negative $0.2 million compared to negative $0.3 million in Q2 2024.
“DAVIDsTEA stayed the course with its omnichannel growth strategy in the second quarter of 2025, supported by retail store and wholesale channel sales increases of 9.1% and 2.5% year-over-year, respectively,” said Sarah Segal, Chief Executive Officer and Chief Brand Officer, DAVIDsTEA.
“While our online sales growth is not where it should be, we are encouraged by the halo effect of our retail locations, which continue to drive brand awareness and
customer engagement. As we expand our store footprint, we are intensifying our community and brand marketing
efforts—across both digital and physical media—to ensure we remain top of mind with consumers heading into our
peak selling season. We expect these initiatives to generate a strong return on investment and contribute to profitable growth.”
DAVIDsTEA offers a specialty branded selection of high-quality proprietary loose-leaf teas, pre-packaged
teas, tea sachets, tea-related accessories and gifts through its e-commerce platform at www.davidstea.com and the Amazon Marketplace, its wholesale customers which include over 4,000 grocery stores and pharmacies, over 1,500 convenience stores in Canada and over 900 grocery stores in the United States, as well as 20 company-owned stores across Canada. The company offers primarily proprietary tea blends that are exclusive to the company, as well as traditional single-origin teas and herbs.
“We fully intend to make retail stores the focal point of our omnichannel growth strategy,” said Frank Zitella, President, Chief Financial and Operating Officer, DAVIDsTEA. “After all, the best billboard for DAVIDsTEA is a new store, especially considering the deep expertise of our tea guides in driving exploration across a wide assortment of products. We believe this positive in-store consumer experience, in turn, will convert non-tea drinkers or casual tea drinkers into devoted tea lovers.
“We are currently renovating our flagship store in Montreal’s South Shore and remain on track to reopen in midNovember. At the same time, we will be celebrating the opening of a brand-new store at Laurier Quebec Mall in Quebec City—two important milestones in our renewed retail expansion. A third new location will follow at Square One Mall in Mississauga—one of Canada’s premier shopping destinations—in July 2026. We look forward to expanding our store footprint and strengthening our presence in communities across Canada.”
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