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DavidsTea reports increase in net profit; sales up 22.7% to $75.8M

MONTREAL – DavidsTea (Nasdaq:DTEA) says net income almost doubled to $14.8 million in its fiscal 2015 fourth quarter from $7.9 million in the comparable year-earlier period.

However, earnings per share slumped to 57 cents on a fully diluted basis from 64 cents in the 2014 period when there were fewer shares.

Adjusted net income,, which excludes IPO-related and other non-cash, one-time costs for the three months ended Jan. 30 was $11.8 million or 45 cents per share compared with $11.4 million or 46 cents in the fourth quarter of fiscal 2014.

The Montreal-based retailer of specialty tea and accessories reported after markets closed that sales increased 22.7 per cent to $75.8 million from $61.8 million in the prior-year quarter, while comparable store sales were up 6.6 per cent.

During the quarter, the company opened 10 new stores for a total of 193 in Canada and the United States, up 25 per cent from the end of 2014.

DavidsTea plans to open 40 more stores in this fiscal year as it works towards a 550 store expansion.

It also announced Tuesday it opened a new store in Calgary and one in Freehold, N.J.