DAVIDsTEA Q2 Fiscal 2026: Canadian sales up 5.5%, gross margin hits record 61.9%

DAVIDsTEA (Diana Tea Co Ltd) reported stronger second-quarter fiscal 2026 results, with Canadian sales rising 5.5% to CAD 10.5 million, accounting for 91.5% of total revenue. Brick-and-mortar sales grew 9.6% to CAD 5 million, while comparable store sales increased 4.4%, compared with a 0.6% gain in the prior-year quarter. Gross profit surged 9% to CAD 7.1 million, with a record gross margin of 61.9%—up 320 basis points year-over-year. Operating expenses as a percentage of sales fell to 59.8% from 60.9% in the same period last year, contributing to an EBITDA improvement of CAD 0.7 million to CAD 0.5 million. Net loss narrowed to CAD 1.2 million, down from CAD 1.6 million in Q2 2025, while working capital rose to CAD 17.1 million, including CAD 10.2 million in cash. Return on equity stood at 15%, and the debt-to-equity ratio was 2.44. The company’s stock closed at CAD 28.15, a 1.33% drop, within a 52-week range of CAD 22.75 to CAD 34.75.