08:34 AM EDT, 06/17/2025 (MT Newswires) -- DAVIDsTEA ( DTEAF ) on Tuesday reported a narrower first-quarter loss and higher revenue.

The company's net loss declined by 94% to $166,000 in the quarter, compared to a net loss of around $2.6 million in the corresponding year-ago quarter.

The company reported first-quarter sales of $13.5 million, up 0.6% from $13.4 million in the year-ago quarter.

"Our first-quarter performance demonstrates consistent execution of our omni-channel growth strategy and significant operational progress. Retail store sales rose 11.5% year-over-year, including 2.8% comparable store sales growth, while gross profit margin exceeded 51% of sales. With adjusted EBITDA reaching $1.6 million, these are meaningful steps forward in our turnaround journey," said DAVIDsTEA ( DTEAF ) Chief Executive Officer and Chief Brand Officer, Sarah Segal.

The company posted an adjusted net income of $196,000 and adjusted fully diluted income per common share of $0.01 per share in the quarter, compared to an adjusted net loss of around $1.6 million and an adjusted fully diluted loss per common share of $0.06 per share, respectively, last year.

"We began fiscal 2025 on a strong note, delivering incremental sales growth, improved gross margins, tighter expense control, and a significantly reduced net loss in the first quarter," said DAVIDsTEA ( DTEAF ) President and Chief Financial Officer Frank Zitella.

"While we anticipate some seasonal softness in the second and third quarters, our leaner cost structure, adequate liquidity, and diversified channel mix positions us to achieve our objective of full-year profitability," added Zitella.