September 7, 2012

Teavana posts loss in second quarter 2012

Specialty retailer Teavana has posted a $146,000 loss for the second quarter of 2012 ended on 29 July 2012.

By admin-demo

Specialty retailer Teavana has posted a $146,000 loss for the second quarter of 2012 ended on 29 July 2012.

Net sales for the reporting period increased by 38% to $43.1m from $31.3m in the corresponding period of 2011; the net sales included $2.0m from the 46 Teaopia stores acquired on 11 June 2012.

Income from operations, includes a loss from Teaopia of $2.0m, compared to $2.3m in the second quarter of 2011. The loss was due to $0.8m losses from operations and $1.2m in one-time transaction and integration expenses.

The retailer established 15 new stores and acquired 46 Teaopia stores to end the period with 284 company-owned stores, which represents an increase of 59%, or 105 stores, from the 179 stores at the end of the second quarter of 2011.

Teavana chairman and CEO Andrew Mack stated the completion of Teaopia acquisition, first vice president of Marketing and first store in Manhattan.

"Our new stores this year continue to perform above plan, and we’ve already opened 38 of the expected 60 new stores for this year," Mack added.

At the end of the second quarter of 2012,Teavana’s credit facility borrowings and availability on the credit facility stood at $9.5m and $40.5m respectively compared to $5.4m and $34.6m during the same quarter last year.

Founded in 1997, the company offers more than 100 varieties of premium loose-leaf teas, authentic artisanal teawares and other tea-related merchandise through 284 company-owned stores and online.