Teavana posts loss on acquisition costs
ATLANTA (AP) — Teavana Holdings Inc. reported a loss for its second quarter due to costs from a recent acquisition, but its adjusted results beat expectations.
The Atlanta-based company on Tuesday posted a loss of $146,000, or breakeven on a per share basis, for the quarter that ended July 29. That's compared with a profit of $1 million, or 3 cents per share, in the same quarter last year. After excluding expenses for its acquisition of tea retailer Teaopia in June, it earned 3 cents per share.
That exceeds the 2 cents per share that analysts polled by FactSet had anticipated.
Teavana's total revenue increased 38 percent to $43.1 million on an expanded base of stores. It beat the $40.5 million in revenue that analysts had expected.
The company also reported that sales at its stores open at least a year increased 3.5 percent. That is considered another critical indicator of financial performance as it strips away the impact of recently opened or closed stores.
Teavana also said it expects to earn 53 to 55 cents per share for the full year, including Teaopia-related costs of 3 cents a share, on revenue between $222 and $231 million. Analysts had forecast earnings adjusted for one-time items of 57 cents per share on revenue of $220.1 million.
The company expects to post a loss of 4 to 5 cents per share, including Teaopia-related costs of 3 to 4 cents a share, in its third quarter on revenue of $42 million to $45 million. Analysts were expecting an adjusted loss of 2 cents per share, on revenue of $43.4 million for the period.
Shares of Teavana jumped 6 percent to close regular trading at $11.67 before the release of the earnings report. They fell 9 cents after hours to $11.58.