Q4 2020 DAVIDsTEA Inc Earnings Call
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Welcome, ladies and gentlemen to David's Ts fourth quarter and fiscal year 2020 earnings webcast.
Today's webcast is being recorded and is in a listen only mode. Before we get started I would like to remind you of the Companys Safe Harbor language. This presentation includes forward looking statements about our expectations for the performance of our business in the coming quarter and year. Each forward looking statement contained in this presentation of subject to risks and uncertainties that.
Could cause actual results to differ materially from those projected in such statements.
Additional information regarding these factors appears under the heading risk factors in our form 10-K, which was filed with the Securities and Exchange Commission and is available at Www Dot SEC Dot Gov and on Davids Ts website the.
Forward looking statements in this discussion speak only as of today's date and we undertake no obligation to update or revise any of those statements.
If any non <unk> financial measure is used on this call a reconciliation to the most directly comparable <unk> financial measure will be detailed in our form 10-K. As a reminder, all dollar amounts referred to are in Canadian dollars, unless otherwise indicated now I would like to turn the call over to Sara Segal.
For Executive Officer, and Chief brand Officer of Davids tea.
Thank you operator.
Hello, everyone.
We are pleased with our with our results for the fourth quarter and full year 2020, with a third consecutive quarter of positive adjusted EBITDA in a year in which we have made significant progress towards becoming a more agile digital first organization with the sustainable and exciting future.
Our ability to pivot successfully and the extent of our ongoing transformation is best exemplified by the growth in the proportion of our sales now derived via online.
Online represented only 22% of total sales in 2019 and.
And in 2020 represented over 80%.
This reflects both the closure of the vast majority of our store network the growth in online sales.
Our retail footprint now consists of 18 strategically located mall based stores through Canada part of our omni channel strategy, and where we continue to re imagine the in store consumer.
In the past year, our wholesale sales channel also performed well despite many COVID-19 related restrictions impacting retailers.
This sales channel increases convenience for existing customers, but also enables us to attract new customers, who can discover a selection of our cash a tea blends.
Presence on store shelves helps drive greater brand awareness and generate traffic to our website.
In our own retail stores, where customers can net experience, our full range of products, including loose leaf tea and package guests.
Our three sales channels are now well balanced and complementary within our omni channel strategy and reflect the base for our strategic vision for the future of David's team.
In our restructuring efforts one of the key objectives was to create a more agile organization that can adapt and react quickly to new trends and evolving consumer preferences.
Good day Davids tea is better able to a line of business strategies with evolving needs. For example, with restrictions in place across Canada, we quickly introduced and implemented new fulfillment capabilities, enabling our customers to have curbside pick up and buy online and pickup in store options at the very start of the pandemic.
David T. We are devoted to finding new ways for our customers to explore of discover and chase the Tuesday love the excellence innovation and continuous product development to lead the market remains key focus areas in order to retain our loyal customers, while attracting new consumers.
As previously announced we launched our first ever seasonal subscription box branded as the tea taste and clubs the.
The box of subscription model provides the key levers with a wide variety of seasonal newness and exclusive Ts.
We have received very positive feedback from our members from appreciated access of the TSA had never tried before while others appreciated the wide selection of Ts.
All in all consumer feedback has been very positive the T J <unk> and cloud creates a higher level of engagement with our members and built a sense of community that we want to continue nurturing and which has been a hallmark of the Davids tea brand since its founding.
We will continue to leverage our online platform and <unk> community to drive our innovations and connected of more virtual virtually social personalized and responsive manner for our customers.
With a wide range of cheese from traditional garden to cup organic wellness plans, the fruity ICT, our new online capabilities provide the ideal venue to help our customers better navigate our expensive offering.
In closing and.
In a very challenging environment. Our team has worked incredibly hard and I am very proud of what we've achieved so far that said we.