Teavana profit beats Street on increased same-store sales
(Reuters) - Specialty tea retailer Teavana Holdings Inc TEA.N posted better-than-expected adjusted quarterly profit, helped by increased sales at its stores open for at least a year, and it forecast full-year profit above estimates.
Teavana, which sells more than 100 varieties of premium loose-leaf tea, forecast full-year earnings of 53-55 cents per share on revenue of $222-$231 million.
Analysts on average were expecting 2012 earnings of 47 cents per share on revenue of $167.1 million, according to Thomson Reuters I/B/E/S.
The Atlanta, Georgia-based company reported net loss of $114,000, or breakeven per share, for the quarter ended July 29, compared with a profit of $1 million, or 3 cents per share, a year earlier.
Excluding expenses related to its acquisition of Teaopia, the company earned 3 cents per share, above analysts' estimate of 2 cents per share.
The company said in June it bought Teaopia Ltd for $26.9 million in cash to reach out to shoppers in Canada with its specialty loose-leaf teas.
Net sales rose 38 percent to $43.1 million, beating estimates of $40.5 million.
Teavana, which also sells tea-related merchandise including teapots, cups, decor and foods under its namesake brand, said comparable sales increased 3.5 percent.
Teavana's shares, which have lost more than half their value over the past one year, were up 5 percent in after-market trading. They closed at $11.67 on the New York Stock Exchange on Tuesday.
(Reporting by Aditi Shrivastava in Bangalore; Editing by Maju Samuel)