DAVIDsTEA Provides Business Update on COVID-19
March 17 2020 - 8:30AM
DAVIDsTEA Inc. (Nasdaq:DTEA) (“DAVIDsTEA” or “the Company”), a
leading tea merchant in North America, announced that it has closed
all of its stores in North America, effective today and until
further notice, in response to the continued spread of COVID-19.
“After careful evaluation of what has been a
rapidly evolving situation, our team has made the very difficult
decision to close all stores, until further notice. We want to be a
responsible global citizen true to our core values, and are
therefore doing our part in what must be a unified response to the
COVID-19 pandemic,” stated Herschel Segal, Founder, Chairman and
Interim CEO of DAVIDsTEA.
“In view of this unprecedented public health
crisis, this is the right thing to do to protect our communities,
our staff and our customers. During this difficult time, we hope
our tea will provide some comfort by continuing to offer our
products directly to consumers through our online store and in the
more than 2,500 supermarkets and drugstores across Canada. We will
keep our stakeholders informed as to when we expect to reopen our
stores. This decision will be based on our assessment of the
situation as it evolves, and in concert with guidance from public
authorities.’’
The Company will provide an update regarding the
operational and financial impacts of COVID-19 during its fourth
quarter fiscal 2019 earnings call, to be held on May 1, 2020.
Cautionary Forward-Looking
Statements
Certain material presented in this press release
includes forward-looking statements intended to qualify for the
safe harbor from liability established by the United States Private
Securities Litigation Reform Act of 1995. These forward-looking
statements generally can be identified by the use of words such as
“anticipate”, “expect”, “plan”, “could”, “may”, “will”, “believe”,
“estimate”, “forecast”, “goal”, “project” and other words of
similar meaning. These forward-looking statements address various
matters including management’s beliefs about the Company’s
prospects, management’s turn-around strategy, plans for investment
in marketing initiatives, changes to product offerings and
assortment, and strategic plans. The Company cannot assure
investors that future developments affecting the Company will be
those that it has anticipated. Actual results may differ materially
from these expectations due to risks and uncertainties including:
the risks and uncertainties associated with, and resulting from,
the COVID-19 pandemic, the Company’s ability to implement its
strategy, the Company’s ability to maintain and enhance its brand
image, particularly in new markets; the Company’s ability to
compete in the specialty tea and beverage category; the Company’s
ability to expand and improve its operations; changes in the
Company’s executive management team; levels of foot traffic in
locations in which the Company’s stores are located; changes in
consumer trends and preferences; fluctuations in foreign currency
exchange rates; general economic conditions and consumer
confidence; minimum wage laws; the importance of the Company’s
first, second and third fiscal quarters to results of operations
for the entire fiscal year; and other risks set forth in the
Company’s Annual Report on Form 10-K. If one or more of these risks
or uncertainties materialize, or if any of the Company’s
assumptions prove incorrect, the Company’s actual results may vary
in material respects from those projected in these forward-looking
statements. Any forward-looking statement made by the Company in
this release speaks only as of the date on which the Company makes
it. The Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by any
applicable securities laws.
About DAVIDsTEA
DAVIDsTEA is a leading retailer of specialty
tea, offering a differentiated selection of proprietary loose-leaf
teas, pre-packaged teas, tea sachets and tea-related gifts,
accessories and food and beverages through over 230 company-owned
and operated DAVIDsTEA retail stores in Canada and the United
States, as well as through its e-commerce platform at
davidstea.com. A selection of DAVIDsTEA products is also available
in grocery stores across Canada through its growing wholesale
distribution channel. The Company is headquartered in Montréal,
Canada.
Investor Contact |
Media Contact |
MaisonBrison Communications |
PELICAN PR |
Pierre Boucher |
Lyla Radmanovich |
514-731-0000 |
514-845-8763 |
investors@davidstea.com |
media@rppelican.ca |
Davids Tea (NASDAQ:DTEA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Davids Tea (NASDAQ:DTEA)
Historical Stock Chart
From Apr 2023 to Apr 2024