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DAVIDSTEA DAVIDSTEA Reports Second Quarter Fiscal 2021 Financial Results September 14 , 2021 • Revenues of $ 18.7 million , Adjusted EBITDA of negative $ 0.6 million • Expands omnichannel presence with launch of innovative store - in - store concept as it continues transformation to a digital first e - tailer . Confirms completion of CCAA proceedings • Herschel Segal retires from Board of Directors ; Jane Silverstone Segal appointed as director and Chair of the Board MONTREAL , Sept. 14 , 2021 ( GLOBE NEWSWIRE ) -- DAVIDSTEA Inc. ( Nasdaq : DTEA ) ( " DAVIDSTEA " or the " Company " ) , a leading tea merchant in North America , today announced its second quarter results for the period ended July 31 , 2021 ( all amounts are expressed in Canadian dollars ) . " We are moving forward with a number of initiatives that lay the groundwork for a successful omni - channel presence that retains key retail stores , a strong and growing online business , and a new emphasis on placing our products on the shelves of well - placed retail partners . Our goal is to retain our loyal customers while attracting new audiences of tea consumers . After a successful trial starting in March , we are expanding our " store - within - a - store " concept with Rexall pharmacies to 115 stores this fall , further extending our presence in the grocery and pharmacy retail channel . This latest partnership provides another opportunity for DAVIDSTEA to reach our community of tea lovers in new , local and accessible ways , bringing even more of our products to retail shelves , " stated Sarah Segal , Chief Executive Officer and Chief Brand Officer . " On the product innovation front , we recently launched our most extensive Fall tea collection to date featuring unique pumpkin spice - inspired blends , as well as our biggest holiday countdown collection , featuring not one but three iconic holiday calendars this year . We are focused on delighting customers in all that we do with innovative blends and exciting accessories , while offering a distinctive DAVIDSTEA customer experience that contributes to greater wellness and sustainability - whether online , in our 18 flagship stores or through other retailers who proudly carry our brand , " Ms. Segal added . " The decline in second quarter sales reflects last year's pandemic - fueled surge of online sales as we transition back to omnichannel sales this year . Necessary investments in our operations that accelerate our transformation to a digital - first company have also impacted our results . Having created an exceptional brand thanks to a unique in - store experience , our goal is to replicate that success in the digital world with best - in - class technology , " said Frank Zitella , President , Chief Financial and Operating Officer . " We have officially exited CCAA and remain in a healthy financial position as we focus on making tea fun and accessible to all . Our drive towards sustained profitable growth is directed by making the right strategic investments to create demand for our products , in establishing world - class fulfillment and by continuing to pleasantly surprise our customers through quality innovations we bring to the marketplace , " concluded Mr. Zitella . Herschel Segal Retires from Board of Directors ; J ane Silverstone Segal Appointed as Director and Chair DAVIDSTEA also announced today that Herschel Segal , a founder and principal shareholder of DAVIDSTEA , has retired as a director and Chair of the Board of DAVIDSTEA . To fill the vacancy , the Board of Directors has appointed Jane Silverstone Segal , Herschel Segal's spouse , as director and Chair of the Board , effective immediately . Mr. Segal will remain as a strategic advisor to DAVIDSTEA . " We have just celebrated the 13 th anniversary of DAVIDSTEA and we are successfully transitioning to a digital - first company . The time is right for me to move to an advisory role with full confidence in our clear business strategy and strong management team , supported by an experienced and dedicated Board . I remain fully committed to DAVIDSTEA and excited about its future , " said Herschel Segal . " On behalf of the Board and shareholders , I want to thank Herschel Segal for his valued contribution to DAVIDSTEA since its founding , " said Pat De Marco , DAVIDSTEA's lead director . " Herschel Segal's vision and energy were instrumental in creating and building DAVIDSTEA . I know we will benefit from his strategic counsel going forward . " " We welcome Jane Silverstone Segal to the Board of Directors and as Chair of DAVIDSTE A , " said Peter Robinson , Chair of DAVIDSTEA's Corporate Governance and Nominating Committee . " With her knowledge of the tea industry and vast business experience , we are confident that she will be an effective Chair to the benefit of all our stakeholders . " Rainy Day Investments Ltd. , a company controlled by Herschel Segal , owns approximately 46 % of DAVIDSTE A's issued and outstanding shares . Jane Silverstone Segal , BA , LLLL , Director and Chair of the Board . Ms. Silverstone is a seasoned retail industry executive with over four decades of experience , having held senior leadership positions with the Canadian clothing retailer Le Chateau Inc. , including as Chair of the Board and Chief Executive Officer from 2008 to 2020. Ms. Silverstone is the founder and owner of the successful children's store Oink Oink located in Westmount , Québec . Passionate about nature and the environment , she worked as a park naturalist for five years in national parks across Canada and is also a longstanding patron of the David Suzuki Foundation . Ms. Silverstone holds a Bachelor of Arts from McGill University , Montreal , Québec , and a civil law degree from Université de Montréal , Montreal , Québec . Operating Results for the Second Quarter of Fiscal 2021 Three months ended July 31 , 2021 compared to three months ended August 1 , 2020 Sales . Sales for the three months ended July 31 , 2021 decreased 18.6 % or $ 4.3 million to $ 18.7 million from $ 23.0 million in the prior year quarter . On March 17 , 2020 , in response to the COVID - 19 pandemic , the Company temporarily closed all its retail stores in Canada and the United States , and