Slide 1: Q1 2025 Financial Results
Q1 2025 Financial Results June 17, 2025
Slide 2: Cautionary Forward-Looking Statements
Cautionary Forward-Looking Statements This presentation includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and there are, or may be deemed to be, “forward-looking statements” in this presentati
Slide 3: Business Update
Business Update Sarah Segal Chief Executive Officer & Chief Brand Officer 3
Slide 4: Continued Turnaround Journey – Q1 2025
Continued Turnaround Journey – Q1 2025 › Strong momentum in retail store sales with 11.5% growth • Comparable store sales increased 2.8% › Gross profit expanded over 51% of sales › SG&A expenses reduced by $1.5 million › Adjusted EBITDA amounted to $1.6 million or 11.7% of sales › Wholesale channel
Slide 5: Headed to Growth Mode
Headed to Growth Mode ▪ Opening new stores in the fall and relocating another one to a high-traffic suburban centre in Montreal ▪ Committed to achieving sustained profitable growth ▪ Optimize retail footprint ▪ Deliver compelling brand experience across all channels ▪ Deepen customer engagement 5
Slide 6: Financial Review
Financial Review Frank Zitella President, Chief Financial and Operating Officer 6
Slide 7: At a Glance – Q1 2025
At a Glance – Q1 2025 › Sales totaled $13.5 million • Up $0.1 million, or 0.6%, from Q1 2024 › Gross profit as a percentage of sales reached 51.1% • Versus 43.3% in same quarter last year › Adjusted EBITDA attained $1.6 million • Improved $2.4 million from Q1 2024 › Net loss amounted to $0.2 million
Slide 8: Q1 2025 Results
Q1 2025 Results Sales Comparable Same Store Sales Growth (in millions of CAD$) 0.6% 23.2 19.8% 19.3% 13.4 14.0 13.5 7.7% 11.1 2.8% -4.7% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 › Increase in brick-and-mortar sales, partially offset by › Comparable store sales
Slide 9: Q1 2025 Results – Channel Sales
Q1 2025 Results – Channel Sales E-Commerce Brick-and-Mortar Wholesale (in millions of CAD$) (in millions of CAD$) (in millions of CAD$) (4.8%) 11.5% (5.3%) 12.4 8.6 3.0 2.2 2.3 2.1 4.7 5.0 6.7 6.4 6.4 4.5 4.2 5.5 1.4 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1
Slide 10: Q1 2025 Results – Geographic Sales
Q1 2025 Results – Geographic Sales Canada U.S. (in millions of CAD$) (in millions of CAD$) (0.8%) 10.1% 19.6 3.6 11.7 12.0 11.6 2.0 1.9 9.6 1.7 1.5 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 10
Slide 11: Q1 2025 Results
Q1 2025 Results Gross Profit and Margin SG&A Expenses (in millions of CAD$) (in millions of CAD$) 18.6% ($1.5)M 11.2 8.4 8.7 8.6 7.2 6.9 6.9 6.7 5.8 5.3 62.9% 62.0% 60.5% 51.5% 51.1% 51.3% 47.3% 48.4% 43.3% 37.1% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 › Bette
Slide 12: Q1 2025 Results
Q1 2025 Results Net Income (Loss) Adjusted Net Income (Loss) 1 (in millions of CAD$) (in millions of CAD$) 2.5 2.7 0.0 0.2 -0.2 -1.5 -1.6 -1.0 -2.6 -1.6 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 › Net loss reduced by $2.5 million from Q1 2024 › Adjusted net inco
Slide 13: Q1 2025 Results
Q1 2025 Results Adjusted EBITDA1 Adjusted EBITDA1 (after rent equivalent expense) (in millions of CAD$) (in millions of CAD$) $2.4M $1.9M 4.0 2.8 1.6 1.0 0.4 0.0 -0.3 -0.8 -1.1 -1.6 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 › Increased sales, higher gross profit
Slide 14: Q1 2025 Results
Q1 2025 Results Cash Position (in millions of CAD$) 1.6M › Cash position improved from Q1 2024, but declined 16.2 sequentially due to typical seasonality 8.8 10.4 › Cash flow used from operations of $4.6 million 7.9 6.7 › No balance sheet debt Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 › Liquidity adeq
Slide 15: Wrap-Up
Wrap-Up 1 Delivered strong start to fiscal 2025 with margin expansion and profitability gains in Q1 2025 New store openings scheduled for the fall, part of plan to 2 generate sales CAGR of >10% over next three years 3 Hired two management executives to drive sales growth in online and wholesale chan
Slide 16: Appendix
Appendix 16
Slide 17: Non-IFRS Financial Measures and Ratios
Non-IFRS Financial Measures and Ratios Reconciliation of Net Income (Loss) to EBITDA Reconciliation of EBITDA to Adjusted EBITDA (a) Represents non-cash stock-based compensation expense; (b) Represents impairment of property and equipment and intangible assets; (c) Represents professional fees incur
Slide 18: Non-IFRS Financial Measures and Ratios
Non-IFRS Financial Measures and Ratios Reconciliation of Adjusted EBITDA to Adjusted EBITDA (after rent equivalent expense) Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) (a) Represents non-cash stock-based compensation expense; (b) Represents impairment of property and equipment
Slide 19: www.davidstea.com
www.davidstea.com