Teavana Holdings, Inc. (NYSE: TEA) today announced financial results for the second quarter fiscal 2012 period ended July 29, 2012.
Highlights for the second quarter:
- Net sales increased by 38% to $43.1 million from $31.3 million in the second quarter of fiscal 2011. Net sales for the quarter includes $2.0 million of net sales from the 46 Teaopia stores acquired on June 11, 2012.
- The Company opened 15 new stores and acquired 46 Teaopia stores to end the period with 284 company-owned stores. This represents an increase of 59%, or 105 stores, from the 179 stores at the end of the second quarter of fiscal 2011.
- Comparable sales increased by 3.5%. Comparable sales include e-commerce and exclude the acquired Teaopia stores.
- Income from operations, which includes a loss from Teaopia of $2.0 million, was $0.0 million compared to $2.3 million in the second quarter of fiscal 2011. The Teaopia loss was driven by a $0.8 million loss from operations and $1.2 million in one-time transaction and integration expenses.
- Net loss, which includes a loss from Teaopia of $1.2 million after tax, was $0.1 million as compared to net income of $1.0 million in the second quarter of fiscal 2011. The Teaopia loss was driven by a $0.5 million after tax loss from operations and $0.7 million after tax in one-time transaction and integration expenses.
- Net loss per diluted share, which includes a loss from Teaopia of $0.03 per diluted share, was $0.00 per diluted share as compared to net income per diluted share of $0.03 in the second quarter of fiscal 2011. The Teaopia loss was driven by a $0.01 per diluted share loss from operations and $0.02 per diluted share in one-time transaction and integration expenses.
Andrew Mack, Chairman and CEO, stated: “We were pleased to have delivered another quarter with strong sales growth of 38% and earnings per share excluding Teaopia coming in at the top end of our guidance range. We were also very excited to have closed our acquisition of Teaopia, completed our search for our first VP of Marketing and opened our first store in Manhattan, which is performing extremely well. Our integration of Teaopia is well underway with numerous stores already converted to Teavana and performing ahead of expectations. 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. Finally, our VP of Marketing started with Teavana today, and we look forward to working with him to develop and roll out marketing programs that will further strengthen the Teavana brand and our engagement with customers.”
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