The following is a summary of the DAVIDsTEA, Inc. (DTEA) Q4 2023 Earnings Call Transcript:

Financial Performance:

• DAVIDsTEA reported a decrease in total sales to $12.1 million in Q3 2023, down from $16.2 million in Q3 2022.

• Online sales dropped by 45.1% year-over-year.

• Gross profit margin showed improvement at 37.9%, due to lower unit cost in fulfilling online orders.

• The company reported net losses of $3.7 million, marking an improvement from $4.7 million in Q3 of 2022.

• Adjusted EBITDA was reported at negative $2.5 million compared to negative $2 million for the same quarter last year.

• The company maintained discipline in its cost control measures leading to reduced SG&A expenses.

• The company ended Q3 with $11.7 million in cash and working capital of $20.1 million, without any interest-bearing debt.

Business Progress:

• DAVIDsTEA initiated new go-to-market strategies and strengthened its marketing team to stimulate growth, which includes entry into the U.S. wholesale market and further expansion in Canada.

• Adriana Germilli was appointed as Vice President of Marketing and Damon Sloane as Chief Digital Officer in order to strengthen the company's brand and online customer service.

• Expansion in existing Canadian markets was facilitated via store-in-store models.

• As part of improving the brand experience, the company internalized delivery services, resulting in an efficient fulfilment of Black Friday orders and better order processing.

• There was a significant increase in wholesale channel sales by 56.3% to $2.5 million, hence raising its contribution to total revenues from 10% to 21%.

• The company is on track with its cost-cutting measures, targeting a reduction of $8 million to $10 million for the fiscal year.

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