Core Insights - DAVIDsTEA Inc. reported a first-quarter revenue of $13.5 million, reflecting a year-over-year increase of 0.6% [5][21] - The company achieved a gross profit margin of 51.1%, up from 43.3% in the same quarter last year, driven by improved product margins and reduced shipping costs [8][21] - Adjusted EBITDA turned positive at $1.6 million compared to a negative $0.8 million in the prior year quarter, indicating operational improvements [13][21] Financial Performance - Retail store sales increased by 11.5% year-over-year, with comparable store sales growth of 2.8% [2][21] - Canadian sales, which made up 86.1% of total revenue, decreased by $0.1 million or 0.8%, while U.S. sales rose by $0.2 million or 10.1% to $1.9 million [5][21] - Online sales decreased by 4.8% to $6.4 million, representing 47.5% of total sales, while wholesale sales also declined by 5.3% to $2.1 million [7][21] Cost Management - Selling, general and administrative expenses (SG&A) decreased by 17.9% to $6.9 million, primarily due to a reduction in IT-related expenses [9][21] - SG&A expenses as a percentage of sales improved to 51.3% from 62.9% in the prior year, reflecting enhanced cost efficiency [12][21] - The company reported a significantly reduced net loss of $0.2 million compared to $2.6 million in the same quarter last year [14][21] Strategic Initiatives - The company plans to open new retail locations in the fall as part of its growth strategy, aiming for a compound annual growth rate of over 10% over the next three years [3][21] - DAVIDsTEA is focused on optimizing its retail footprint and enhancing customer engagement to drive sustainable growth [3][4] - The company maintains a strong cash position of $10.4 million, up from $8.8 million in the prior year, supporting its operational needs [16][21]