DAVIDsTEA (DTEAF) 10-K 19 Apr 18 2017 FY Annual report Financial data

Document and Entity DEI Informa

Document and Entity DEI Information - USD ($)	12 Months Ended
	Feb. 03, 2018	Apr. 18, 2018	Jul. 29, 2017
Document and Entity Information
Entity Registrant Name	DAVIDsTEA Inc.
Entity Central Index Key	1,627,606
Document Type	10-K
Document Period End Date	Feb. 3, 2018
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Amendment Flag	false
Current Fiscal Year End Date	--02-03
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 77,549,363
Entity Common Stock, Shares Outstanding		25,897,837

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - CAD ($) $ in Thousands	Feb. 03, 2018	Jan. 28, 2017
Current
Cash	$ 63,484	$ 64,440
Accounts and other receivables	3,131	3,485
Inventories	24,450	31,264
Income tax receivable	2,968	539
Prepaid expenses and deposits	7,712	5,659
Derivative financial instruments		454
Total current assets	101,745	105,841
Property and equipment	36,558	51,160
Intangible assets	4,439	2,958
Deferred income tax assets	5,194	14,375
Total assets	147,936	174,334
Current
Trade and other payables	14,392	19,681
Deferred revenue	5,186	4,885
Current portion of provisions	4,693	2,562
Derivative financial instruments	229
Total current liabilities	24,500	27,128
Deferred rent and lease inducements	8,608	7,824
Provisions	13,460	5,932
Total liabilities	46,568	40,884
Commitments and contingencies
Equity
Share capital	111,692	263,828
Contributed surplus	2,642	8,833
Deficit	(14,721)	(142,398)
Accumulated other comprehensive income	1,755	3,187
Total equity	101,368	133,450
Total liabilities and equity	$ 147,936	$ 174,334

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
Sales	$ 224,015	$ 215,984	$ 180,690
Cost of sales	116,772	107,534	85,359
Gross profit	107,243	108,450	95,331
Selling, general and administrative expense	131,930	114,756	80,116
Results from operating activities	(24,687)	(6,306)	15,215
Finance costs	2,371	76	1,051
Finance income	(567)	(479)	(348)
Accretion of preferred shares			401
Loss from embedded derivative on Series A, A-1 and A-2 preferred shares			140,874
Loss before income taxes	(26,491)	(5,903)	(126,763)
Provision for income tax (recovery)	2,010	(2,235)	4,668
Net loss	(28,501)	(3,668)	(131,431)
Items to be reclassified subsequently to income:
Unrealized net gain (loss) on forward exchange contracts	(992)	(2,247)	5,253
Realized net (gain) loss on forward exchange contracts reclassified to inventory	309	(742)	(1,811)
Provision for income tax recovery (income tax) on comprehensive income	183	793	(913)
Cumulative translation adjustment	(932)	(820)	1,388
Other comprehensive income (loss), net of tax	(1,432)	(3,016)	3,917
Total comprehensive loss	$ (29,933)	$ (6,684)	$ (127,514)
Net loss per share:
Basic (in CAD per share)	$ (1.11)	$ (0.15)	$ (6.65)
Fully diluted (in CAD per share)	$ (1.11)	$ (0.15)	$ (6.65)
Weighted average number of shares outstanding
Weighted average number of shares outstanding - basic	25,716,186	24,699,290	19,776,946
Weighted average number of shares outstanding - fully diluted	25,716,186	24,699,290	19,776,946

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
OPERATING ACTIVITIES
Net loss	$ (28,501)	$ (3,668)	$ (131,431)
Items not affecting cash:
Depreciation of property and equipment	8,431	8,069	5,832
Amortization of intangible assets	1,474	758	613
Loss on disposal of property and equipment	82	356	297
Impairment of property and equipment	15,069	7,516
Deferred rent	542	1,325	1,165
Provision (recovery) for onerous contracts	10,321	8,140	(265)
Stock-based compensation expense	2,021	2,264	1,749
Settlement related to cashless exercise of stock options, net of income taxes recovered			(2,976)
Amortization of financing fees	79	75	241
Accretion on provisions	2,292
Accretion of preferred shares			401
Loss from embedded derivative on Series A, A-1 and A-2 preferred shares			140,874
Deferred income taxes (recovered)	3,585	(4,380)	1,364
Cash flows related to operating activities before net change in working capital	15,395	20,455	17,864
Net change in other non-cash working capital balances related to operations	(5,537)	(9,293)	(2,272)
Cash flows related to operating activities	9,858	11,162	15,592
FINANCING ACTIVITIES
Repayment of finance lease obligations			(552)
Proceeds from issuance of long-term debt			9,996
Repayment of long-term debt			(20,010)
Repayment of loan from the controlling shareholder			(2,952)
Proceeds from issuance of common shares pursuant to exercise of stock options	1,782	2,779	143
Gross proceeds of initial public offering ("IPO")			79,370
IPO-related expenses			(10,661)
Financing fees			(172)
Cash flows related to financing activities	1,782	2,779	55,162
INVESTING ACTIVITIES
Additions to property and equipment	(9,634)	(20,531)	(16,852)
Additions to intangible assets	(2,962)	(1,484)	(1,172)
Cash flows related to investing activities	(12,596)	(22,015)	(18,024)
Decrease in cash during the period	(956)	(8,074)	52,730
Cash, beginning of year	64,440	72,514	19,784
Cash, end of year	63,484	64,440	72,514
Cash paid for:
Interest		1	372
Income taxes (classified as operating activity)	880	2,437	2,675
Cash received for:
Interest	574	486	378
Income taxes (classified as operating activity)	$ 68	$ 532	$ 662

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY (DEFICIENCY) - CAD ($) $ in Thousands	Share Capital	Contributed Surplus	Deficit	Accumulated Other Comprehensive Income	Accumulated Derivative Financial Instrument Adjustment	Accumulated Foreign Currency Translation Adjustment	Total
Balance, beginning of period at Jan. 30, 2016	$ 259,205	$ 7,094	$ (138,465)	$ 6,203	$ 2,529	$ 3,674	$ 134,037
Change in equity
Net loss for the year			(3,668)				(3,668)
Other comprehensive loss				(3,016)	(2,196)	(820)	(3,016)
Total comprehensive loss			(3,668)	(3,016)	(2,196)	(820)	(6,684)
Issuance of common shares	4,175	(1,396)					2,779
Common shares issued on vesting of restricted stock units	448	(922)	(265)				(739)
Stock-based compensation		2,264					2,264
Income tax impact associated with stock options		1,793					1,793
Balance, end of period at Jan. 28, 2017	263,828	8,833	(142,398)	3,187	333	2,854	133,450
Change in equity
Net loss for the year			(28,501)				(28,501)
Other comprehensive loss				(1,432)	(500)	(932)	(1,432)
Total comprehensive loss			(28,501)	(1,432)	(500)	(932)	(29,933)
Issuance of common shares	2,669	(887)					1,782
Common shares issued on vesting of restricted stock units	1,142	(1,984)	231				(611)
Write-down of deferred income tax assets		(3,412)					(3,412)
Stock-based compensation		2,021					2,021
Income tax impact associated with stock options		(1,797)					(1,797)
Impact of change in foreign tax rate associated with stock options		(132)					(132)
Reduction of stated capital	(155,947)		155,947
Balance, end of period at Feb. 03, 2018	$ 111,692	$ 2,642	$ (14,721)	$ 1,755	$ (167)	$ 1,922	$ 101,368

CORPORATE INFORMATION

CORPORATE INFORMATION	12 Months Ended
	Feb. 03, 2018
CORPORATE INFORMATION
CORPORATE INFORMATION	1. CORPORATE INFORMATION The consolidated financial statements of DAVIDsTEA Inc. and its subsidiary (collectively, the “Company”) for the year ended February 3, 2018 were authorized for issue in accordance with a resolution of the Board of Directors on April 19, 2018. The Company is incorporated and domiciled in Canada and its shares are publicly traded on the NASDAQ Global Market under the symbol “DTEA”. The registered office is located at 5430, Ferrier Street, Town of Mount-Royal, Quebec, Canada, H4P 1M2. The Company is engaged in the retail and online sale of tea, tea accessories and food and beverages in Canada and in the United States. Sales fluctuate from quarter to quarter. Sales are traditionally higher in the fourth fiscal quarter due to the year-end holiday season, and tend to be lowest in the second and third fiscal quarters because of lower customer traffic during the summer months.

BASIS OF PREPARATION

BASIS OF PREPARATION	12 Months Ended
	Feb. 03, 2018
BASIS OF PREPARATION
BASIS OF PREPARATION	2. BASIS OF PREPARATION The consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The accounting policies were consistently applied to all periods presented. The Company’s fiscal year ends on the Saturday closest to the end of January, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. The years ended January 30, 2016 and January 28, 2017 cover a 52-week period. The year ended February 3, 2018 covers a 53-week fiscal period. Basis of consolidation The consolidated financial statements include the accounts of the Company and its wholly owned U.S. subsidiary, DAVIDsTEA (USA) Inc. The financial statements of the subsidiary are prepared for the same reporting period as the parent company, using consistent accounting policies. All intercompany transactions, balances and unrealized gains or losses have been eliminated. Basis of measurement These consolidated financial statements have been prepared on the historical cost basis except for the following material items: · Derivative financial instruments are measured at fair value; and · Provisions for onerous contracts are measured at the present value of the expenditures expected to settle the obligations. Functional and presentation currency These consolidated financial statements are presented in Canadian dollars, which is the parent Company’s functional currency.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Feb. 03, 2018
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES	3. SIGNIFICANT ACCOUNTING POLICIES Cash Cash on the consolidated balance sheet comprises cash at banks and on hand. Inventory valuation Inventories are measured at the lower of cost and net realizable value. Cost is determined using the weighted average cost method. Costs include the cost of purchase and transportation costs that are directly incurred to bring the inventories to their present location, and duty. Net realizable value is the estimated selling price of inventory in the ordinary course of business, less any estimated selling costs. Cost also includes realized gains and losses on forward contracts designated as cash flow hedges of U.S. inventory purchases. Property and equipment Property and equipment are initially recorded at cost and are depreciated over their useful economic life. Cost includes expenditures that are directly attributable to the acquisition of the asset, including any costs directly related to bringing the asset to a working condition for its intended use. The residual values, useful lives and methods of depreciation of property and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. All repair and maintenance costs are recognized in net income (loss) as incurred. Depreciation of an asset begins once it becomes available for use. Depreciation is charged to income on the following bases: Furniture and equipment 20 % declining balance Computer hardware 30 % declining balance Leasehold improvements are depreciated on a straight‑line basis over the lesser of the useful economic life and the initial term of the leases, plus one renewal option period, not to exceed 10 years. Any gain or loss arising on the disposal or derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in net income (loss) when the asset is derecognized. Intangible assets Intangible assets consist of computer software, trademarks and patents. Intangible assets are initially recorded at cost. Intangible assets with finite lives are amortized over their useful economic life. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in income (loss) as the expense category that is consistent with the function of the intangible assets. Any gain or loss arising on the disposal or derecognition of the intangible asset (calculated as the difference between the net disposal proceeds and the carrying amount of the intangible asset) is included in net income (loss) when the intangible asset is derecognized. When computer software is not an integral part of a related item of computer hardware, the software is treated as an intangible. Computer software is amortized on the basis of its estimated useful life using the declining method at the rate of 30%. Leases Leases are classified as either operating or finance, based on the substance of the transaction at inception of the lease. Classification is re‑assessed if the terms of the lease are changed. Leases in which a significant portion of the risks and rewards of ownership are not assumed by the Company are classified as operating leases. The Company carries on its operations in premises under leases of varying terms and renewal options, which are accounted for as operating leases. Payments under an operating lease are recognized in net income (loss) on a straight‑line basis over the term of the lease. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related rent expense on a straight‑line basis and, consequently, records the difference between the recognized rental expense and the amounts payable under the lease as deferred rent. Contingent (sales‑based) rentals are recognized as an expense when incurred. Store opening costs Store opening costs are expensed as incurred. Impairment i. The Company assesses, at each reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired. An impairment exists if one or more events that has occurred since the initial recognition of the asset (an incurred “loss event”) has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults. ii. The Company assesses, at each reporting date, whether there is an indication that an item of property and equipment or an intangible asset may be impaired. If any indication exists, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash‑generating unit’s (“CGU”) fair value less costs of disposal and its value in use. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre‑tax discount rate that reflects current market assessments of the time value of money. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or corporate assets. The discount rate applied to an asset or CGU is the weighted average cost of capital (“WACC”). Management considers factors such as risk-free rate, equity risk premium, size premium, specific business risk premium and cost of debt to derive the WACC. The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover the lease term. Based on the management of operations, the Company has defined each of the commercial premises in which it carries out its activities as a CGU, although where appropriate these premises are aggregated at a district or regional level to form a CGU. An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased and if there has been a change in the assumptions used to determine the asset’s recoverable amount. The reversal is limited to the extent that an asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, had no impairment loss been recognized. Such reversal is recognized in net income (loss). Derivative financial instruments and hedge accounting The Company enters into foreign exchange forward contracts to hedge its foreign currency risks, resulting from variability in foreign currency exchange rates on inventory purchases, as described in Note 24. Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. For the purpose of hedge accounting, hedges are classified as cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction. At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated. The Company has applied hedge accounting for its foreign exchange forward contracts and has designated them as cash flow hedges. The effective portion of the gain or loss on the hedging instrument is recognized directly in Other Comprehensive Income (Loss) (“OCI”), while any ineffective portion is recognized immediately in net income (loss). The amounts recognized in OCI are reclassified to inventory when such non-financial asset is recognized on the balance sheet, and to net income (loss) when inventory is subsequently sold. Provisions Provisions are recognized when the Company has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of income (loss) net of any reimbursement. All provisions are reviewed at each reporting date and adjusted to reflect the current best estimates. If the effect of the time value of money is material, provisions are discounted using a current pre‑tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. Deferred lease inducements The deferred lease inducements are composed of free rent and construction allowances obtained upon signing of lease agreements for certain retail stores. They are amortized on a straight‑line basis over the term of the related leases, plus one renewal option, to a maximum of 10 years. Share capital i. Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares are recognized as a deduction from equity, net of any tax effects. Common shares are classified as equity if they are non‑redeemable or redeemable only at the Company’s option, and any dividends are discretionary. Dividends thereon are recognized as distributions within equity on approval by the Company’s Board of Directors. ii. Preferred shares are classified as a financial liability if they are redeemable on a specific date or at the option of the shareholders. Dividends thereon are recognized as interest expense in net income (loss) as accrued. . iii. Hybrid financial instruments issued by the Company comprise convertible preferred shares that can be converted to common shares at the option of the holders, when the number of shares to be issued is not fixed. The equity components on such instruments are separated from the debt host contract (preferred shares redeemable at the option of the holders) and accounted for separately if the economic characteristics and risks of the debt host contract and the embedded derivative (equity components) are not closely related. iv. The Company issued liability‑classified derivatives and embedded derivatives over its Series A, A‑1 and A‑2 preferred shares. Embedded derivatives are separated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are not closely related, a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative and the combined instrument is not measured at fair value through income (loss). Derivatives and separable embedded derivatives are recognized initially at fair value and attributable transaction costs are recognized in income (loss) as incurred. Subsequent to initial recognition, derivatives and separable embedded derivatives are measured at fair value and all changes in their fair value are recognized immediately in income (loss). Stock‑based compensation The Company has a stock option plan for employees and directors from which options to purchase common shares are issued (the “Plan”). Options may not be granted with an exercise price of less than the fair value of the underlying shares at the grant date. The awards have no cash settlement alternatives. The vesting requirements are typically service‑based and the options normally have a contractual life of seven years. The fair value of stock‑based compensation awards granted to employees is measured at the grant date using the Black Scholes option pricing model. Measurement inputs include the share price of the underlying shares on the measurement date, the exercise price of the option, the expected volatility (based on weighted average historical volatility of comparable companies adjusted for changes expected based on publicly available information), the weighted average expected life of the option (based on historical experience), expected dividends, and the risk‑free interest rate (based on government bonds). The value of the compensation expense is recognized over the vesting period of the stock options as an expense included in selling and general administration expenses, with a corresponding increase to contributed surplus in equity. The amount recognized as an expense is adjusted to reflect the Company’s best estimate of the number of awards that will ultimately vest. No expense is recognized for awards that do not ultimately vest. Any consideration paid by plan participants on the exercise of stock options and the previously recognized compensation cost of the options exercised included in contributed surplus are credited to share capital. Under the Company’s 2015 Omnibus Equity Incentive Plan (the “2015 Omnibus Plan”), selected employees and directors are granted RSUs where each RSU has a value equal to one common share. The compensation expense is recorded at the fair value of the Company’s common shares at the grant date over the vesting period (generally one to three years) with a corresponding credit to contributed surplus for equity-settled RSUs and a corresponding credit to a liability for cash-settled RSUs. RSUs may be settled in shares, cash, or a combination of cash or shares upon vesting at the discretion of the Company. Cash settled RSUs are revalued at each reporting date to reflect their fair value at that date. Fair value is determined using the closing price of the Company’s common shares on the NASDAQ Global Market prior to the date of the grant. The Company has not issued any cash settled awards to date. Revenue recognition Revenue from retail sales is recorded upon delivery to the customer. Revenue is recognized on e-commerce sales when merchandise is delivered. Revenues are recorded net of discounts, rebates, estimated returns, sales taxes and amounts deferred related to the issuance of Frequent Steeper points. i. Gift cards sold are recorded as deferred revenue and revenue is recognized at the time of redemption or in accordance with the Company’s accounting policy for breakage. Breakage income represents the estimated value of gift cards that is not expected to be redeemed by customers and is estimated based on historical redemption patterns. Gift card breakage is included in sales in the consolidated statement of income (loss). ii. The Frequent Steeper loyalty and rewards program allows customers to earn points when they purchase products in the Company’s retail stores and on the Company’s website. Points can be redeemed for free tea or free beverages, depending on the number of points a customer has obtained over a limited collection period. Free tea offers are issued at the end of each collection period and must be redeemed within 60 days from the effective date. Free beverage offers are issued at the end of the calendar collection period and must be redeemed within 60 days from the effective date. The fair value of points issued is recorded as deferred revenue and recognized as revenue only when the points are redeemed for free products or when the related points expire. The fair value of Frequent Steeper points is determined based on the estimated selling price of the product for which the point is expected to be redeemed, net of points we do not expect to be redeemed. On an ongoing basis, the Company monitors historical redemption rates. Points revenue is included with total sales in the consolidated statement of income (loss). Finance income Interest income is recognized as interest accrues using the effective interest method. Income taxes Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in net income (loss) except to the extent that they relate to items recognized directly in equity or in other comprehensive income. Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered or paid. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. The Company uses the liability method of accounting for deferred income taxes, which requires the establishment of deferred tax assets and liabilities for all temporary differences caused when the tax bases of assets and liabilities differ from their carrying amounts reported in the consolidated financial statements. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the temporary differences when they reverse, based on tax rates that have been enacted or substantively enacted at the end of the reporting period. The Company recognizes deferred income tax assets for unused tax losses and deductible temporary differences only to the extent that, in management’s opinion, it is probable that future taxable income will be available against which they can be utilized. Deferred income tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority and the Company intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. Earnings per share Basic earnings per share are calculated using the weighted average number of shares outstanding during the period. The diluted earnings per share are calculated by adjusting the weighted average number of shares outstanding to include additional shares issued from the assumed conversion of preferred shares and the exercise of stock options and RSUs, if dilutive. For stock options, the number of additional shares is calculated by assuming that the proceeds from such exercises, as well as the amount of unrecognized stock-based compensation which is considered to be assumed proceeds, are used to purchase common shares at the average market price during the reporting period. Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments are recognized depending on their classification with changes in subsequent measurements being recognized in income or loss or in other comprehensive income (“OCI”). The Company has made the following classifications: · Cash and derivative financial instruments are classified as “Fair Value through Profit or Loss”, and measured at fair value. Changes in fair value are recorded in income (loss). · Accounts and other receivables are classified as “Loans and Receivables”. After their initial fair value measurement, they are measured at amortized cost using the effective interest rate method. · Trade and other payables are classified as “Other Financial Liabilities”. After their initial fair value measurement, they are measured at amortized cost using the effective interest rate method. Foreign currency translation Revenues, expenses and non-monetary assets and liabilities denominated in foreign currencies are recorded at the rate of exchange prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates prevailing at the balance sheet date. Unrealized and realized translation gains and losses are reflected in net income (loss). The assets and liabilities of the Company’s U.S. wholly owned subsidiary, whose functional currency is the U.S. dollar, are translated into Canadian dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at average exchange rates for the year. Differences arising from the exchange rate changes are included in OCI in the cumulative translation account. Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance is considered to form part of the net investment in the foreign operation, are recognized in other comprehensive income in the cumulative translation account and reclassified from equity to net income (loss) on disposal of the net investment.

CHANGES IN ACCOUNTING PRINCIPLE

CHANGES IN ACCOUNTING PRINCIPLES	12 Months Ended
	Feb. 03, 2018
CHANGES IN ACCOUNTING PRINCIPLES
CHANGES IN ACCOUNTING PRINCIPLES	4. CHANGES IN ACCOUNTING PRINCIPLES Standards issued but not yet effective IFRS 9, “Financial Instruments”, for which the final version was issued in July 2014 by the IASB, replaces IAS 39, “Financial Instruments: Recognition and Measurement” and all previous versions of IFRS 9. IFRS 9 brings together all three aspects of the accounting for financial instruments project: classification and measurement, impairment and hedge accounting. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early adoption permitted. Except for hedge accounting, retrospective application is required but providing comparative information is not compulsory. For hedge accounting, the requirements are generally applied prospectively, with some limited exceptions. The Company plans to adopt the new standard on the required effective date. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements and related note disclosures. The Company has performed a high-level impact assessment of all three aspects of IFRS 9. This preliminary assessment is based on currently available information and may be subject to changes arising from further detailed analyses. Overall, the Company does not expect a material impact on its consolidated financial statements. a) Classification and measurement . The Company does not expect a material impact on its consolidated financial statements in applying the classification and measurement requirements of IFRS 9. b) Impairment . IFRS 9 requires the Company to record expected credit losses on all of its debt securities, loans and trade receivables, either on a 12-month or lifetime basis. The Company expects to apply the simplified approach and record lifetime expected losses on all trade receivables. The Company will need to perform a detailed analysis which considers all reasonable and supportable information, including forward-looking elements to determine the extent of the impact. Based on its existing trade receivables, the Company does not expect the IFRS 9 expected credit loss model to have a material impact on its consolidated financial statements. c) Hedge accounting . The Company believes that all existing hedge relationships that are currently designated in effective hedging relationships still qualify for hedge accounting under IFRS 9. As IFRS 9 does not change the general principles of how an entity accounts for effective hedges, the adoption of IFRS 9 will not have a material impact on the Company’s hedge accounting. IFRS 15, “Revenue from Contracts with Customers” (“IFRS 15”) replaces IAS 11, “Construction Contracts”, and IAS 18, “Revenue”, as well as various interpretations regarding revenue. This standard introduces a single model for recognizing revenue that applies to all contracts with customers, except for contracts that are within the scope of standards on leases, insurance and financial instruments. This standard also requires enhanced disclosures. Adoption of IFRS 15 is mandatory and will be effective for annual periods beginning on or after January 1, 2018. The Company has completed an assessment of significant contracts with customers and has determined the preliminary expected impacts of the adoption of IFRS 15 on its consolidated financial statements. The implementation of IFRS 15 will impact the allocation of revenue that is deferred in relation to its customer loyalty award programs. Revenue is currently allocated to the customer loyalty awards using the residual fair value method. Under IFRS 15, consideration will be allocated between the loyalty program awards and the goods on which the awards were earned, based on their relative stand-alone selling prices. The Company does not expect that the change in allocation of revenue that is deferred in relation to its customer loyalty program will have a material impact on retained earnings as at February 4, 2018. The Company continues to assess the impact of the disclosure requirements under IFRS 15 on the its consolidated financial statements. IFRS 16, “Leases” (“IFRS 16”) replaces IAS 17, “Leases”. This standard provides a single model for leases abolishing the current distinction between finance and operating leases, with most leases being recognized on the balance sheet. Certain exemptions will apply for short-term leases and leases of low value assets. The new standard will be effective for annual periods beginning on or after January 1, 2019. Early application is permitted, provided the new revenue standard, IFRS 15, has been applied, or is applied at the same date as IFRS 16. The Company has performed a preliminary assessment of the potential impact of the adoption of IFRS 16 on its consolidated financial statements. The Company expects the adoption of IFRS 16 will have a significant impact as the Company will recognize new assets and liabilities for its operating leases of retail stores. In addition, the nature and timing of expenses related to those leases will change as IFRS 16 replaces the straight-line operating lease expense with a depreciation charge for right-of use assets and interest expense on lease liabilities. The Company has not yet determined which transition method it will apply or whether it will use the optional exemptions or practical expedients under the standard. The Company expects to disclose additional detailed information, including its transition method, any practical expedients elected and IFRIC 22, “Foreign Currency Transactions and Advance Consideration” (“IFRIC 22”). In December 2016, the IASB issued IFRIC 22, which addresses how to determine the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) and on the derecognition of a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration in a foreign currency. IFRIC 22 is effective for annual periods beginning on or after January 1, 2018. Early adoption is permitted. The Company is in the process of evaluating the impact of adopting the interpretation of IFRIC 22 on its consolidated financial statements. IFRIC 23, “Uncertainty over Income Tax Treatments”, was issued by the IASB in June 2017. The Interpretation provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The Interpretation is effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted. The Interpretation requires an entity to: · Contemplate whether uncertain tax treatments should be considered separately, or together as a group, based on which approach provides better predictions of the resolution; · Reflect an uncertainty in the amount of income tax payable (recoverable) if it is probable that it will pay (or recover) an amount for the uncertainty; and · Measure a tax uncertainty based on the most likely amount or expected value depending on whichever method better predicts the amount payable (recoverable). The Company does not expect a material impact from the adoption of IFRIC 23 on its consolidated financial statements.

SIGNIFICANT ACCOUNTING JUDGEMEN

SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS	12 Months Ended
	Feb. 03, 2018
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS	5. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The preparation of the consolidated financial statements in conformity with IFRS requires the Company to make judgments, apart from those involving estimation, in applying accounting policies that affect the recognition and measurement of assets, liabilities, revenues, and expenses. Actual results may differ from the judgments made by the Company. Information about judgments that have the most significant effect on recognition and measurement of assets, liabilities, revenues, and expenses are discussed below. Information about significant estimates is discussed in the following section. Key sources of estimation uncertainty Recoverability and impairment of non‑financial assets Leasehold improvements and furniture and equipment are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. A review for impairment is conducted by comparing the carrying amount of the CGU’s assets with their respective recoverable amounts based on value in use. Value in use is determined based on management’s best estimate of expected future cash flows, which includes estimates of growth rates, from use over the remaining lease term and discounted using a pre‑tax weighted average cost of capital (Note 8). Critical judgements in applying accounting policies i. Impairment of non‑financial assets Management is required to make significant judgments in determining if individual commercial premises in which it carries out its activities are individual CGUs, or if these units should be aggregated at a district or regional level to form a CGU. The significant judgments applied by management in determining if stores should be aggregated in a given geographic area to form a CGU include the determination of expected customer behavior, the allocation basis of e-commerce sales to CGUs, and whether customers could interchangeably shop in any of the stores in a given area and whether management views the cash flows of the stores in the group as interdependent. ii. Income taxes The Company may be subject to audits related to tax risks, and uncertainties exist with respect to the interpretation of tax regulations, changes in tax laws, and the amount and timing of future taxable income. Differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to taxable income and income tax expense already recorded. The Company establishes provisions if required, based on reasonable estimates, for possible consequences of audits by the tax authorities. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the entity and the responsible tax authority, which may arise on a wide variety of issues. To determine the extent to which deferred income tax assets can be recognized, management estimates the amount of probable future taxable profits that will be available against which deductible temporary differences and unused tax losses can be used. Such estimates are made as part of the budget and strategic plan by tax jurisdiction. Management exercises judgment to determine the extent to which realization of future taxable benefits is probable considering factors such as the number of years included in the forecast period and prudent tax planning strategies. See Note 19—Income Taxes for more details.

ACCOUNTS AND OTHER RECEIVABLES

ACCOUNTS AND OTHER RECEIVABLES	12 Months Ended
	Feb. 03, 2018
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES	6. ACCOUNTS AND OTHER RECEIVABLES February 3, January 28, 2018 2017 $ $ Credit card cash clearing receivables 1,291 1,537 Other receivables 1,840 1,948 3,131 3,485

INVENTORIES

INVENTORIES	12 Months Ended
	Feb. 03, 2018
INVENTORIES
INVENTORIES	7. INVENTORIES February 3, January 28, 2018 2017 $ $ Finished goods 17,600 24,504 Goods in transit 4,608 5,463 Packaging 2,242 1,297 24,450 31,264 During the year ended February 3, 2018, inventories recognized as cost of sales amounted to $64,611 [January 28, 2017 —$62,995]. The cost of inventory includes a write‑down of nil [January 28, 2017 — write-down of $869] recorded as a result of net realizable value being lower than cost. During the year, $730 of inventory write-downs recognized in previous years were reversed.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Feb. 03, 2018
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	8. PROPERTY AND EQUIPMENT Leasehold Furniture and Computer improvements equipment hardware Total $ $ $ $ Cost Balance, January 30, 2016 60,520 8,270 3,156 71,946 Acquisitions 16,571 3,135 825 20,531 Disposals (404) (104) — (508) Cumulative translation adjustment (1,132) (116) (33) (1,281) Balance, January 28, 2017 75,555 11,185 3,948 90,688 Acquisitions 6,581 1,808 1,245 9,634 Disposals — (187) — (187) Cumulative translation adjustment (1,503) (167) (49) (1,719) Balance, February 3, 2018 80,633 12,639 5,144 98,416 Leasehold Furniture and Computer improvements equipment hardware Total $ $ $ $ Accumulated depreciation and impairment Balance, January 30, 2016 19,918 3,332 1,366 24,616 Depreciation 6,210 1,211 648 8,069 Impairment 6,764 615 137 7,516 Disposals (91) (61) — (152) Cumulative translation adjustment (459) (49) (13) (521) Balance, January 28, 2017 32,342 5,048 2,138 39,528 Depreciation 6,394 1,357 680 8,431 Impairment 13,491 1,148 430 15,069 Disposals — (105) — (105) Cumulative translation adjustment (931) (102) (32) (1,065) Balance, February 3, 2018 51,296 7,346 3,216 61,858 Net Carrying Value Balance, January 28, 2017 43,213 6,137 1,810 51,160 Balance, February 3, 2018 29,337 5,293 1,928 36,558 For the year ended February 3, 2018, an assessment of impairment indicators was performed which caused the Company to review the recoverable amount of the property and equipment for certain CGUs with an indication of impairment. CGUs reviewed included stores performing below the Company’s expectations. As a result, an impairment loss of $15,935 [January 28, 2017 — $7,516; January 30, 2016 — nil] related to store leasehold improvements, furniture and equipment, and computer hardware was recorded in the Canada and U.S. segments for $5,114 and $10,821, respectively [January 28, 2017 —$1,116 and $6,400, respectively; January 30, 2016 — nil and nil, respectively]. These losses were determined by comparing the carrying amount of the CGU’s net assets with their respective recoverable amounts based on value in use. Value in use of $1,097 [January 28, 2017 —$472; January 30, 2016 —nil] was determined based on management’s best estimate of expected future cash flows from use over the remaining lease terms, considering historical experience as well as current economic conditions, and was then discounted using a pre‑tax discount rate of 11.9% [January 28, 2017 — 13.4%; January 30, 2016 — 13.4%]. A reversal of impairment occurs when previously impaired CGUs see improved financial results. For the year ended February 3, 2018, $866 of impairment losses were reversed following a change in the expected future cash flows of certain CGUs in the U.S. segment [January 28, 2017 — nil; January 30, 2016 — nil]. Value in use of $848 for these CGU’s was determined in the same manner as described above. Impairment losses were reversed only to the extent that the carrying amounts of the CGU’s net assets do not exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss had been recognized. For the year ended February 3, 2018, the depreciation expense was $8,431 [January 28, 2017 —$8,069 ; January 30, 2016 — $5,832]; with $6,387 recorded in the Canada segment [January 28, 2017 — $5,583; January 30, 2016 — $4,384], $1,508 recorded in the U.S. segment [January 28, 2017 — $1,930; January 30, 2016 — $1,080], and $536 recorded in corporate selling, general and administration expenses [January 28, 2017 — $556; January 30, 2016 — $368]. Depreciation expense and net impairment losses are reported in the consolidated statement of income (loss) and comprehensive income (loss) under selling, general and administration expenses (Note 20).

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Feb. 03, 2018
INTANGIBLE ASSETS
INTANGIBLE ASSETS	9. INTANGIBLE ASSETS Computer software Other Total $ $ $ Cost Balance, January 30, 2016 4,856 275 5,131 Acquisitions 1,468 16 1,484 Cumulative translation adjustment (3) (12) (15) Balance, January 28, 2017 6,321 279 6,600 Acquisitions 2,962 — 2,962 Cumulative translation adjustment (4) (10) (14) Balance, February 3, 2018 9,279 269 9,548 Accumulated amortization Balance, January 30, 2016 2,828 61 2,889 Amortization 739 19 758 Cumulative translation adjustment (2) (3) (5) Balance, January 28, 2017 3,565 77 3,642 Amortization 1,456 18 1,474 Cumulative translation adjustment (2) (5) (7) Balance, February 3, 2018 5,019 90 5,109 Net Carrying Value Balance, January 28, 2017 2,756 202 2,958 Balance, February 3, 2018 4,260 179 4,439 Amortization expense is reported in the consolidated statement of income (loss) under selling, general and administration expenses (Note 20).

TRADE AND OTHER PAYABLES

TRADE AND OTHER PAYABLES	12 Months Ended
	Feb. 03, 2018
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES	10. TRADE AND OTHER PAYABLES February 3, January 28, 2018 2017 $ $ Trade payable and accrued liabilities 11,221 13,990 Government remittances 186 1,860 Wages, salaries and employee benefits payable 2,985 3,831 14,392 19,681

DEFERRED REVENUE

DEFERRED REVENUE	12 Months Ended
	Feb. 03, 2018
DEFERRED REVENUE
DEFERRED REVENUE	11. DEFERRED REVENUE February 3, January 28, 2018 2017 $ $ Gift cards liability 3,982 3,263 Loyalty program liability 1,204 1,622 5,186 4,885 During the year, the Company recorded gift card breakage income of $575 [January 28, 2017 - $850]. Gift card breakage is included in sales in the consolidated statement of income (loss).

PROVISIONS

PROVISIONS	12 Months Ended
	Feb. 03, 2018
PROVISIONS
Provisions	12. PROVISIONS For the year ended February 3, 2018 $ Opening balance 8,494 Utilization (2,467) Additions 14,073 Reversals (3,752) Settlements (132) Accretion expense 2,292 Cumulative translation adjustment (355) Ending balance 18,153 Less: Current portion (4,693) Long-term portion of provisions 13,460 Provisions for onerous contracts have been recognized in respect of store leases where the unavoidable costs of meeting the obligations under the lease agreements exceed the economic benefits expected to be received from the contract. The unavoidable costs reflect the present value of the lower of the expected cost of terminating the contract and the expected net cost of operating under the contract. For the year ended February 3, 2018, additions to the onerous provisions were recorded in the amount of $14,073, while the provisions for other stores were fully or partially reversed by $3,752.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Feb. 03, 2018
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	13. COMMITMENTS AND CONTINGENCIES Operating lease commitments The commercial premises at which the Company carries out its retail operations, its head office and its primary warehouse location are leased from third parties. These rental contracts are classified as operating leases since there is no transfer of risks and rewards inherent to ownership. These leases have varying terms and renewal rights. In many cases, the amounts payable to the lessor include a fixed rental payment as well as a percentage of sales obtained by the Company in the leased premises. Many leases include escalating rental payments, whereby cash outflows increase over the lease term. Free rental periods are also sometimes included. The minimum rentals payable under long‑term operating leases are exclusive of certain operating costs for which the Company is responsible. For the year ended February 3, 2018, the Company has recognized in income (loss) contingent rent amounting to $1,742 [January 28, 2017 — $2,312; January 30, 2016 — $1,829] and accrued for a contingent rent liability of $725 [January 28, 2017 —$1,001]. Included in the cost of sales and selling, general and administration expenses for the year ended February 3, 2018 is rent expense of $31,565 [January 28, 2017 — $29,173; January 30, 2016 — $22,679]. The following is a schedule of future minimum lease payments under operating leases: February 3, January 28, 2018 2017 $ $ Within one year 19,840 19,306 After one year but not more than five years 86,844 90,891 More than five years 28,281 38,239 134,965 148,436

REVOLVING FACILITY

REVOLVING FACILITY	12 Months Ended
	Feb. 03, 2018
REVOLVING FACILITY
REVOLVING FACILITY	14. REVOLVING FACILITY The Company has a credit agreement (the “Credit Agreement”) with the Bank of Montreal (“BMO”). The Credit Agreement provides for a three-year revolving term facility, maturing October 31, 2019, in the principal amount of $20,000 (which the Company refers to as the “Revolving Facility”) or the equivalent amount in U.S. Dollars, repayable at any time. The Credit Agreement also provides for an accordion feature whereby the Company may, at any time prior to the end of the three-year term and with permission from BMO, request an increase to the Revolving Facility by an amount not greater than $10,000. As at February 3, 2018 and January 28, 2017, the Company did not have any borrowings on the Revolving Facility. The Credit Agreement subjects the Company to certain financial covenants. Without the prior written consent of BMO, the Company’s fixed charge coverage ratio may not be less than 1.25:1.00 and the Company’s leverage ratio may not exceed 3.00:1.00. In addition, the Company’s net tangible worth may not be less than $30,000. Borrowings under the Revolving Facility are available in the form of Canadian dollar advances, U.S. dollar advances, prime rate loans, banker’s acceptances, U.S. base rate loans and LIBOR loans. Further, up to an aggregate maximum amount of $2,000, or the equivalent amount in other currencies authorized by BMO, is available by way of letters of credit or letters of guarantees for terms of not more than 364 days. The Revolving Facility bears interest based on the Company’s adjusted leverage ratio. In the event the Company’s adjusted leverage ratio is equal to or less than 3.00:1.00, the Revolving Facility bears interest at (a) the bank’s prime rate plus 0.50% per annum, (b) the bank’s U.S. base rate plus 0.50% per annum, (c) LIBOR plus 1.50% per annum, subject to availability, or (d) 1.50% on the face amount of each banker’s acceptance, letter of credit or letter of guarantee, as applicable. A standby fee of 0.30% will be paid on the daily principal amount of the unused portion of the Revolving Facility. Should the Company’s adjusted leverage ratio be greater than 3.00:1.00 but less than 4.00:1.00, the Revolving Facility bears interest at (a) the bank’s prime rate plus 0.75% per annum, (b) the bank’s U.S. base rate plus 0.75% per annum, (c) LIBOR plus 1.75% per annum, subject to availability, or (d) 1.75% on the face amount of each banker’s acceptance, letter of credit or letter of guarantee, as applicable. A standby fee of 0.35% will be paid on the daily principal amount of the unused portion of the Revolving Facility. If the Company’s adjusted leverage ratio is greater than 4.00:1.00, the Revolving Facility bears interest at (a) the bank’s prime rate plus 1.25% per annum, (b) the bank’s U.S. base rate plus 1.25% per annum, (c) LIBOR plus 2.25% per annum, subject to availability, or (d) 2.25% on the face amount of each banker’s acceptance, letter of credit or letter of guarantee, as applicable. A standby fee of 0.45% will be paid on the daily principal amount of the unused portion of the Revolving Facility. As at February 3, 2018, the bank’s prime rate was 3.45% [January 28, 2017 — 2.70%] and the bank’s U.S base rate was 5.00% [January 28, 2017 — 4.50%]. The Credit Agreement is collateralized by a first lien security interest in all of the Company’s assets in the amount of $37,500, a general security agreement, registered in each Canadian province in which the Company does business, creating a first priority charge on all assets. The Revolving Facility contains a number of covenants that, among other things and subject to certain exceptions, restrict the Company’s ability to become guarantor or endorser or otherwise become liable upon any note or other obligation other than in the normal course of business. The Company also cannot make any dividend payments. As at February 3, 2018, the Company is in compliance with these covenants.

LOAN FROM THE CONTROLLING SHARE

LOAN FROM THE CONTROLLING SHAREHOLDER	12 Months Ended
	Feb. 03, 2018
LOAN FROM THE CONTROLLING SHAREHOLDER
LOAN FROM THE CONTROLLING SHAREHOLDER	22. RELATED PARTY DISCLOSURES During the year ended February 3, 2018, the Company purchased merchandise from a company controlled by one of its executive employees amounting to $87 [January 28, 2017 — nil; January 30, 2016 — nil]. During the year ended January 30, 2016, interest was incurred on the loan from the controlling shareholder amounting to $48, of which $48 was paid on June 11, 2015. In addition, dividends on Series A, A-1 and A-2 preferred shares were accrued for $438. On June 11, 2015, immediately following the Company’s IPO, the advances under the loan from the controlling shareholder were fully repaid using the proceeds from the IPO and cash on hand, and the Series A, A-1 and A-2 preferred shares were converted into common shares. The transactions referred to above are measured at the exchange amount, being the consideration established and agreed to by the related parties. Transactions with key management personnel Key management of the Company includes members of the Board as well as members of the Executive Committee. The compensation earned by key management in aggregate was as follows: February 3, January 28, January 30, 2018 2017 2016 $ $ $ Wages, salaries and bonus 3,255 2,741 3,600 Termination benefits 1,485 719 — Stock-based compensation 1,035 1,377 1,177 Total compensation earned by key management personnel 5,775 4,837 4,777
Controlling Shareholder
LOAN FROM THE CONTROLLING SHAREHOLDER
LOAN FROM THE CONTROLLING SHAREHOLDER	15. LOAN FROM THE CONTROLLING SHAREHOLDER On June 11, 2015, immediately following the Company’s IPO, the advances under the loan from the controlling shareholder were fully repaid using proceeds from the IPO and cash on hand. As at February 3, 2018, the Company did not have any borrowings from the controlling shareholder [January 28, 2017 — nil].

MANDATORILY REDEEMABLE PREFEREN

MANDATORILY REDEEMABLE PREFERENCE SHARES	12 Months Ended
	Feb. 03, 2018
MANDATORILY REDEEMABLE PREFERENCE SHARES
MANDATORILY REDEEMABLE PREFERENCE SHARES	16. MANDATORILY REDEEMABLE PREFERENCE SHARES Prior to the Company’s IPO on June 10, 2015, the Series A, A-1, and A-2 redeemable preferred shares liability was being accreted to their nominal value and the financial derivative liability embedded in the preferred shares was being measured at fair value with all changes recognized immediately in income (loss). For the year ended January 30, 2016, the accretion on preferred shares was $401 and the changes in the carrying value of the financial derivative liability embedded in preferred shares amounted to $140,874. The amounts were recorded as a loss in the consolidated statement of income (loss) for the year ended January 30, 2016.

SHARE CAPITAL

SHARE CAPITAL	12 Months Ended
	Feb. 03, 2018
SHARE CAPITAL
SHARE CAPITAL	17. SHARE CAPITAL Authorized A unlimited number of common shares. Common shares # Number of shares in issuance Balance, January 30, 2016 24,037,472 Issuance of common shares upon exercise of options 1,236,154 Issuance of common shares upon vesting of restricted stock units 57,325 Balance, January 28, 2017 25,330,951 Issuance of common shares upon exercise of options 456,773 Issuance of common shares upon vesting of restricted stock units 97,648 Balance, February 3, 2018 25,885,372 Issued and outstanding February 3, January 28, 2018 2017 $ $ 25,885,372 Common shares [January 28, 2017 - 25,330,951 shares] 111,692 263,828 111,692 263,828 In June 2017, the shareholders of the Company approved a resolution to reduce the stated capital maintained in respect of the common shares by an amount of $155,947, which resulted in a corresponding reduction of the deficit. During the year ended February 3, 2018, 456,773 stock options were exercised for common shares, for cash proceeds of $1,782 [January 28, 2017 — 1,236,154 stock options for cash proceeds of $2,779]. The carrying value of common shares during the year ended February 3, 2018 includes $887 which corresponds to a reduction in the contributed surplus associated to options exercised during the period. In addition, during the year ended February 3, 2018, 97,648 common shares [January 28, 2017 — 57,325] were issued in relation to the vesting of restricted stock units (“RSU”), resulting in an increase in share capital of $1,142, net of tax [January 28, 2017 — $448]. Stock‑based compensation The 2015 Omnibus Plan provides for awards of stock options, stock appreciation rights (“SARs”), restricted stock, unrestricted stock, stock units (including restricted stock units, “RSUs”), performance awards, deferred share units, elective deferred share units and other awards convertible into or otherwise based on the Company’s common shares. Eligibility for stock options intended to be incentive stock options (“ISOs”) is limited to the Company’s employees. Dividend equivalents may also be provided in connection with an award under the 2015 Omnibus Plan. The maximum term of stock options and SARs is seven years. The options vest evenly over a period of 36 or 48 months, with some options vesting monthly and some options vesting annually. There are no cash settlement alternatives. The maximum number of the Company’s common shares that are available for issuance under the 2015 Omnibus Plan is 1,440,000 shares. Common shares issued under the 2015 Omnibus Plan may be shares held in treasury or authorized but unissued shares of the Company not reserved for any other purpose. As at February 3, 2018, 770,827 common shares remain available for issuance under the 2015 Omnibus Plan. The weighted average fair value of options granted of $2.39 for the year ended February 3, 2018 [January 28, 2017 — $3.72] was estimated using the Black Scholes option pricing model, using the following assumptions: For the year ended February 3, January 28, 2018 2017 Risk-free interest rate % % Expected volatility % % Expected option life years years Expected dividend yield % % Exercise price $ $ Expected volatility was estimated using historical volatility of similar companies whose share prices were publicly available. A summary of the status of the Company’s stock option plan and changes during the year is presented below. For the year ended February 3, January 28, 2018 2017 Weighted Weighted average average Options exercise Options exercise outstanding price outstanding price # $ # $ Outstanding, beginning of year 933,195 5.63 2,146,880 3.04 Issued 161,980 9.76 174,031 14.67 Exercised (456,773) 3.90 (1,236,154) 2.25 Forfeitures (190,623) 9.63 (151,562) 6.99 Outstanding, end of year 447,779 7.18 933,195 5.63 Exercisable, end of year 304,415 5.57 624,813 4.69 The weighted average share price at the date of exercise for options exercised during the year ended February 3, 2018 was $8.51 [January 28, 2017 — $14.24]. The following table summarizes information about the stock options outstanding at February 3, 2018 and January 28, 2017: Weighted Number of Number average Weighted options Weighted outstanding at contractual average exercisable at average February 3, remaining exercise February 3, exercise 2018 life price 2018 price Range of exercise prices # (years) $ # $ $0.77 $3.33 - $4.31 $8.76 - $10.28 $14.39 - $17.99 As at February 3, 2018 Weighted Number of Number average Weighted options Weighted outstanding at contractual average exercisable at average January 28, remaining exercise January 28, exercise 2017 life price 2017 price Range of exercise prices # (years) $ # $ $0.77 $3.33 - $4.31 $14.39 - $17.99 48,010 15 As at January 28, 2017 A summary of the status of the Company’s RSU plan and changes during the year ended February 3, 2018 is presented below. For the year ended February 3, January 28, 2018 2017 Weighted Weighted average average RSUs fair value RSUs fair value outstanding per unit (1) outstanding per unit (1) # $ # $ Outstanding, beginning of year 252,233 12.42 252,720 7.39 Granted 298,897 8.59 194,855 15.11 Forfeitures (89,035) 10.03 (78,184) 9.68 Vested (97,648) 11.85 (57,325) 7.82 Vested, withheld for tax (75,031) 11.28 (59,833) 7.90 Outstanding, end of year 289,416 9.70 252,233 12.42 (1) Weighted average fair value per unit as at date of grant. During the year ended February 3, 2018, the Company recognized a stock-based compensation expense of $2,021 [January 28, 2017 — $2,264; January 30, 2016 — $1,749].

FINANCE COSTS

FINANCE COSTS	12 Months Ended
	Feb. 03, 2018
FINANCE COSTS
FINANCE COSTS	18. FINANCE COSTS February 3, January 28, January 30, 2018 2017 2016 $ $ $ Interest on loan from the controlling shareholder [note 15] — — 48 Interest and financing fees on term loan and Revolving Facility [note 14] 79 75 544 Interest on finance lease — — 19 Accrued dividends on preferred shares — Series A, A-1 and A-2 [note 16] — — 438 Other finance costs — 1 2 Accretion on provisions 2,292 — — 2,371 76 1,051

INCOME TAXES

INCOME TAXES	12 Months Ended
	Feb. 03, 2018
INCOME TAXES
INCOME TAXES	19. INCOME TAXES A reconciliation of the statutory income tax rate to the effective tax rate is as follows: For the year ended February 3, January 28, January 30, 2018 2017 2016 % $ % $ % $ Income tax recovery — statutory rate 26.8 (7,097) 26.5 (1,564) 26.5 (34,729) Increase (decrease) in provision for income tax (recovery) resulting from: Non-deductible items (1.6) 437 (10.1) 598 — — Loss from embedded derivative and accretion of Series A, A-1, and A-2 preferred shares — — — — (28.7) 37,506 Stock based compensation — — — — (0.6) 769 Effect of substantively enacted income tax rate changes (7.9) 2,090 — — — — Unrecognized deferred income tax assets (16.7) 4,415 — — Write-down of deferred income tax assets (7.8) 2,054 — — Other (0.4) 111 21.5 (1,269) (0.9) 1,122 Income tax provision (recovery) — effective tax rate (7.6) 2,010 37.9 (2,235) (3.7) 4,668 A breakdown of the income tax provision (recovery) on the consolidated income statement is as follows: For the year ended February 3, January 28, January 30, 2018 2017 2016 $ $ $ Income tax provision (recovery) Current (1,575) 2,145 3,304 Deferred 3,585 (4,380) 1,364 2,010 (2,235) 4,668 On December 22, 2017, the Tax Cuts and Jobs Act (“U.S. Tax Reform”) was signed into law, which reduced the U.S. federal corporate income tax rate from 35% to 21%, effective January 1, 2018. As a result of the U.S. Tax Reform, The Company’s net deferred taxes reported on the balance sheet were required to be re-measured using the newly enacted rates. The effect of this re-evaluation resulted in a decrease in the net deferred tax assets in the amount of $4,892. The U.S. Tax Reform introduces other important changes in the U.S. corporate income tax laws that may significantly affect the Company in future years, including the creation of a new Base Erosion Anti-Abuse Tax that subjects certain payments from U.S. corporations to foreign related parties to additional taxes, and limitations to certain deductions for net interest expense incurred by U.S. corporations. The U.S. Tax Reform also includes an increase in bonus depreciation from 50% to 100% for qualified property placed in service after September 27, 2017 and before 2023. Future regulations and interpretations to be issued by U.S. authorities may also impact the Company’s estimates and assumptions used in calculating its income tax provisions. The tax effects of temporary differences and net operating losses that give rise to deferred income tax assets and liabilities are as follows: February 3, January 28, 2018 2017 $ $ Deferred income tax assets U.S. operating losses carried forward 1,259 2,439 Deferred rent 1,662 1,885 Stock options 3,401 5,647 Financing fees and IPO-related costs 1,197 1,801 Lease inducements 515 664 Provisions 4,812 3,365 Others 2,346 1,175 Total deferred income tax assets 15,192 16,976 Deferred income tax liabilities Carrying values of property and equipment in excess of tax basis (158) (2,171) Unrealized foreign exchange gain on derivative financial instruments 62 (121) Unrecognized deferred income tax asset (9,789) — Unrealized foreign exchange gain related to intercompany advances (113) (309) Total deferred income tax liabilities (9,998) (2,601) Net deferred income tax assets (liabilities) 5,194 14,375 As at February 3, 2018, the Company’s U.S. subsidiary has accumulated losses amounting to US$14.2 million [January 28, 2017 — US$14.9 million; January 30, 2016 — US$9.7 million], which expire during the years 2033 to 2038. Based upon the projections for future taxable income and prudent tax planning strategies, management believes it is no longer probable the Company will realize the benefits of these operating tax losses carried forward. Therefore, a portion of its deferred income tax assets was not recognized this year. See Note 5 for how the Company determines the extent to which the deferred income tax assets are recognized. The changes in the net deferred income tax asset were as follows for the fiscal years: February 3, January 28, 2018 2017 $ $ Balance net, beginning of year 14,375 7,877 Deferred rent (222) 385 Recognition of U.S. operating losses carried forward (1,180) (1,340) Carrying value of property and equipment in excess of tax losses 2,013 554 Stock options (2,245) 1,493 Financing fees and IPO-related costs (604) (664) Foreign exchange gain on derivative financial instrument 183 793 Unrealized foreign exchange gain on intercompany advances 196 668 Lease inducement (149) 437 Unrecognized deferred income tax asset (9,789) — Provisions 1,447 3,090 Others 1,169 1,082 Deferred income tax assets net, end of year 5,194 14,375

SELLING, GENERAL AND ADMINISTRA

SELLING, GENERAL AND ADMINISTRATION EXPENSES	12 Months Ended
	Feb. 03, 2018
SELLING, GENERAL AND ADMINISTRATION EXPENSES
SELLING, GENERAL AND ADMINISTRATION EXPENSES	20. SELLING, GENERAL AND ADMINISTRATION EXPENSES Included in selling, general and administration expenses are the following expenses: For the year ended February 3, January 28, January 30, 2018 2017 2016 $ $ $ Wages, salaries and employee benefits 65,888 61,143 50,671 Depreciation of property and equipment 8,431 8,069 5,832 Amortization of intangible assets 1,474 758 613 Loss on disposal of property and equipment 82 356 297 Impairment of property and equipment 15,069 7,516 — Provision (recovery) for onerous contracts 10,321 8,140 (265) Stock-based compensation 2,021 2,264 1,749 Executive and employee separation costs related to salary 2,033 835 — Other selling, general and administration 26,611 25,675 21,219 131,930 114,756 80,116

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Feb. 03, 2018
EARNINGS PER SHARE
EARNINGS PER SHARE	21. EARNINGS PER SHARE Basic earnings per share (“EPS”) amounts are calculated by dividing the net income (loss) for the year attributable to ordinary equity holders by the weighted average number of ordinary shares outstanding during the year. Diluted EPS amounts are calculated by dividing the net income (loss) attributable to ordinary equity holders (after adjusting for dividends, accretion interest on the mandatorily redeemable preference shares and gain/loss from embedded derivative on preferred shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares, unless these would be anti‑dilutive. The following reflects the income and share data used in the basic and diluted EPS computations: February 3, January 28, January 30, 2018 2017 2016 $ $ $ Net loss for basic EPS (28,501) (3,688) (131,431) Weighted average number of shares outstanding — basic and diluted 25,716,186 24,699,290 19,776,946 For the years ended February 3, 2018, January 28, 2017, and January 30, 2016, as a result of the net loss during the year, the stock options and RSUs disclosed in Note 17 are anti‑dilutive.

RELATED PARTY DISCLOSURES

RELATED PARTY DISCLOSURES	12 Months Ended
	Feb. 03, 2018
RELATED PARTY DISCLOSURES
RELATED PARTY DISCLOSURES	22. RELATED PARTY DISCLOSURES During the year ended February 3, 2018, the Company purchased merchandise from a company controlled by one of its executive employees amounting to $87 [January 28, 2017 — nil; January 30, 2016 — nil]. During the year ended January 30, 2016, interest was incurred on the loan from the controlling shareholder amounting to $48, of which $48 was paid on June 11, 2015. In addition, dividends on Series A, A-1 and A-2 preferred shares were accrued for $438. On June 11, 2015, immediately following the Company’s IPO, the advances under the loan from the controlling shareholder were fully repaid using the proceeds from the IPO and cash on hand, and the Series A, A-1 and A-2 preferred shares were converted into common shares. The transactions referred to above are measured at the exchange amount, being the consideration established and agreed to by the related parties. Transactions with key management personnel Key management of the Company includes members of the Board as well as members of the Executive Committee. The compensation earned by key management in aggregate was as follows: February 3, January 28, January 30, 2018 2017 2016 $ $ $ Wages, salaries and bonus 3,255 2,741 3,600 Termination benefits 1,485 719 — Stock-based compensation 1,035 1,377 1,177 Total compensation earned by key management personnel 5,775 4,837 4,777

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Feb. 03, 2018
SEGMENT INFORMATION
SEGMENT INFORMATION	23. SEGMENT INFORMATION An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses. The Company has reviewed its operations and determined that each of its retail stores represents an operating segment. However, because its retail stores have similar economic characteristics, sell similar products, have similar types of customers, and use similar distribution channels, the Company has determined that these operating segments can be aggregated at a geographic level. As a result, the Company has concluded that it has two reportable segments, Canada and the U.S., that derive their revenues from the retail and online sale of tea, tea accessories and food and beverages. The Company’s Chief Executive Officer (the chief operating decision maker or “CODM”) makes decisions about resources to be allocated to the segments and assesses performance, and for which discrete financial information is available. The Company derives revenue from the following products: February 3, January 28, January 30, 2018 2017 2016 $ $ $ Tea 156,125 143,280 120,022 Tea accessories 49,470 53,807 43,191 Food and beverages 18,420 18,897 17,477 224,015 215,984 180,690 Property and equipment and intangible assets by country are as follows: February 3, January 28, January 30, 2018 2017 2016 $ $ $ Canada 37,234 41,432 35,915 US 3,763 12,686 13,657 Total 40,997 54,118 49,572 During the fourth quarter, the Company changed the measure of profit used by the CODM in measuring performance. Management believes that the new measure, being results from operating activities before corporate expenses by country, excluding intercompany profit, is the most relevant in evaluating results. The Company has retroactively revised the results by segment for the years ended January 28, 2017 and January 30, 2016. Results from operating activities before corporate expenses per country are as follows: For the year ended February 3, 2018 Canada US Consolidated $ $ $ Sales 185,287 38,728 224,015 Cost of sales 93,383 23,389 116,772 Gross profit 91,904 15,339 107,243 Selling, general and administration expenses (allocated) 54,884 18,302 73,186 Impairment of property and equipment 5,114 9,955 15,069 Provision for onerous contracts 1,752 6,102 7,854 Results from operating activities before corporate expenses 30,154 (19,020) 11,134 Selling, general and administration expenses (non-allocated) 35,821 Results from operating activities (24,687) Finance costs 2,371 Finance income (567) Loss before income taxes (26,491) For the year ended January 28, 2017 Canada US Consolidated $ $ $ Sales 180,380 35,604 215,984 Cost of sales 86,473 21,061 107,534 Gross profit 93,907 14,543 108,450 Selling, general and administration expenses (allocated) 49,466 16,584 66,050 Impairment of property and equipment 1,116 6,400 7,516 Provision for onerous contracts 427 7,713 8,140 Results from operating activities before corporate expenses 42,898 (16,154) 26,744 Selling, general and administration expenses (non-allocated) 33,050 Results from operating activities (6,306) Finance costs 76 Finance income (479) Loss before income taxes (5,903) For the year ended January 30, 2016 Canada US Consolidated $ $ $ Sales 156,186 24,504 180,690 Cost of sales 71,657 13,702 85,359 Gross profit 84,529 10,802 95,331 Selling, general and administration expenses (allocated) 41,174 11,405 52,579 Recovery for onerous contracts — (265) (265) Results from operating activities before corporate expenses 43,355 (338) 43,017 Selling, general and administration expenses (non-allocated) 27,802 Results from operating activities 15,215 Finance costs 1,051 Finance income (348) Accretion of preferred shares 401 Loss from embedded derivative on Series A, A-1 and A-2 Preferred Shares 140,874 Loss before income taxes (126,763)

FINANCIAL RISK MANAGEMENT

FINANCIAL RISK MANAGEMENT	12 Months Ended
	Feb. 03, 2018
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT	24. FINANCIAL RISK MANAGEMENT The Company’s activities expose it to a variety of financial risks, including risks related to foreign exchange, interest rate, credit, and liquidity. Currency risk — foreign exchange risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Given that some of its purchases are denominated in U.S. dollars, the Company is exposed to foreign exchange risk. The Company’s foreign exchange risk is largely limited to currency fluctuations between the Canadian and U.S. dollars. The Company is exposed to currency risk through its cash, accounts receivable and accounts payable denominated in U.S. dollars. Assuming that all other variables remain constant, a revaluation of these monetary assets and liabilities due to a 5% rise or fall in the Canadian dollar against the U.S. dollar would have resulted in an increase or decrease to net income (loss) in the amount of $201. The Company’s foreign exchange exposure is as follows: February 3, January 28, 2018 2017 US$ US$ Cash 5,686 690 Accounts receivable 882 1,188 Accounts payable 2,555 2,461 The Company’s U.S. subsidiary’s transactions are denominated in U.S. dollars. In order to protect itself from the risk of losses should the value of the Canadian dollar decline in relation to the U.S. dollar, the Company has entered into forward contracts to fix the exchange rate of 80% to 90% of its expected U.S. dollar inventory purchasing requirements, through September 2018. A forward foreign exchange contract is a contractual agreement to buy a specific currency at a specific price and date in the future. The Company designated the forward contracts as cash flow hedging instruments under International Accounting Standard 39. This has resulted in mark-to-market foreign exchange adjustments, for qualifying hedged instruments, being recorded as a component of other comprehensive income (loss) for the years ended February 3, 2018 and January 28, 2017. As at February 3, 2018 and January 28, 2017, the designated portion of these hedges was considered effective. The nominal and contract values of foreign exchange contracts outstanding as at February 3, 2018 are as follows: Range of Nominal Nominal Unrealized Contractual value value gain/(loss) exchange rate US$ C$ Term C$ Purchase contracts U.S. dollar 1.2221 - 1.3050 24,100 30,033 February 2018 to September 2018 (229) The nominal and contract values of foreign exchange contracts outstanding as at January 28, 2017 are as follows: Range of Nominal Nominal Unrealized Contractual value value gain exchange rate US$ C$ Term C$ Purchase contracts U.S. dollar 1.2696 - 1.3098 32,700 42,404 February 2017 to October 2017 454 Market risk — interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Financial instruments that potentially subject the Company to cash flow interest rate risk include financial assets and liabilities with variable interest rates and consist of cash. The Company is exposed to cash flow risk on its Revolving Facility which bears interest at variable interest rates (see Note 14). As at February 3, 2018, the Company did not have any borrowings on the Revolving Facility. Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Company’s approach to managing liquidity risk is to ensure, to the extent possible, that it will always have sufficient liquidity to meet liabilities when due. The Company’s liquidity follows a seasonal pattern based on the timing of inventory purchases and capital expenditures. The Company is exposed to this risk mainly in respect of its trade and other payables. As at February 3, 2018, the Company had $63,484 in cash. In addition, as outlined in Note 14, the Company has a Revolving Facility of $20,000, of which nil was drawn as at February 3, 2018. The Revolving Facility also provides for an accordion feature whereby the Company may, at any time prior to the end of the three-year term, and with the permission of BMO, request an increase to the Revolving Facility by an amount not greater than $10,000. The Company expects to finance its growth in store base, store renovations, and investments in infrastructure through cash flows from operations, the Revolving Facility (Note 14) and cash on hand. The Company expects that its trade and other payables will be discharged within 90 days. The following table summarizes the obligations as of February 3, 2018 and January 28, 2017, and the effect such obligations are expected to have on liquidity and cash flows in future periods. February 3, 2018 Payments due by period less than Between More than Total 1 year 1 and 5 years 5 years Trade and other payables 14,392 14,392 — — Operating lease obligations 134,965 19,840 86,844 28,281 Purchase obligations 8,820 8,820 — — 158,177 43,052 86,844 28,281 January 28, 2017 Payments due by period less than Between More than Total 1 year 1 and 5 years 5 years Trade and other payables 19,681 19,681 — — Operating lease obligations 148,436 19,306 90,891 38,239 Purchase obligations 5,842 5,842 — — 173,959 44,829 90,891 38,239 Credit risk The Company is exposed to credit risk resulting from the possibility that counterparties may default on their financial obligations to the Company. The Company’s maximum exposure to credit risk at the reporting date is equal to the carrying value of accounts receivable and derivative financial instruments. Accounts receivable primarily consists of receivables from retail customers who pay by credit card, recoveries of credits from suppliers for returned or damaged products, and receivables from other companies for sales of products, gift cards and other services. Credit card payments have minimal credit risk and the limited number of corporate receivables is closely monitored. Fair values Financial assets and financial liabilities are measured on an ongoing basis at fair value or amortized cost. The disclosures in the “Financial instruments” section of Note 3 describe how the categories of financial instruments are measured and how income and expenses, including fair value gains and losses, are recognized. The fair values of derivative financial instruments have been determined by reference to forward exchange rates at the end of the reporting period and classified in Level 2 of the fair value hierarchy. The classification of financial instruments, as well as their carrying values and fair values, are shown in the tables below: February 3, 2018 January 28, 2017 Carrying Fair Carrying Fair value value value value $ $ $ $ Financial assets Derivative financial instruments — foreign forward exchange contracts 239 239 463 463 Financial liabilities Derivative financial instruments — foreign forward exchange contracts 468 468 9 9 The Company has determined the estimated fair values of its financial instruments based on appropriate valuation methodologies; however, considerable judgment is required to develop these estimates. Accordingly, the estimated fair values are not necessarily indicative of the amounts the Company could realize or would pay in a current market exchange. The estimated fair value amounts can be materially affected by the use of different assumptions or methodologies. The methods and assumptions used to estimate the fair value of financial instruments are described below: · The estimated fair value of long‑term debt bearing variable rates is considered to approximate its carrying value [Level 2]. · The estimated fair value of loan from controlling shareholder was determined by discounting expected cash flows rates currently offered to the Company for similar debt [Level 2]. · The estimated fair value of Series A, A‑1 and A‑2 preferred shares was determined by discounting expected future cash flows rates at the discount rates which represent the cost of borrowing those cash flows [Level 3]. · The carrying value of the financial derivative liability is its fair value [Level 3]. · The estimated fair value of forward contracts is determined using forward exchange rates at the end of the reporting period [Level 2]. The Company categorizes its financial assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs used in the measurement. Level 1: This level includes assets and liabilities measured at fair value based on unadjusted quoted prices for identical assets and liabilities in active markets that are accessible at the measurement date. Level 2: This level includes valuations determined using directly (i.e. as prices) or indirectly (i.e. derived from prices) observable inputs other than quoted prices included within Level 1. Derivative instruments in this category are valued using models or other standard valuation techniques derived from observable market inputs. Level 3: This level includes valuations based on inputs which are less observable, unavailable or where the observable data does not support a significant portion of the instruments’ fair value. There were no significant transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the years ended February 3, 2018 and January 28, 2017.

MANAGEMENT OF CAPITAL

MANAGEMENT OF CAPITAL	12 Months Ended
	Feb. 03, 2018
MANAGEMENT OF CAPITAL
MANAGEMENT OF CAPITAL	25. MANAGEMENT OF CAPITAL As at February 3, 2018, the Company’s capital is composed of shareholders’ equity as follows: February 3, January 28, 2018 2017 $ $ Total debt — — Shareholder’s equity [excluding accumulated other comprehensive income] 99,613 130,263 Total capital under management 99,613 130,263 The Company’s objectives in managing capital are to ensure sufficient liquidity to pursue its organic growth, to establish a strong capital base so as to maintain investor, creditor and market confidence and to provide an adequate return to shareholders. The Company’s primary uses of capital are to finance increases in non‑cash working capital, capital expenditures for its store expansion and renovation program as well as information technology and infrastructure improvements. The Company currently funds these requirements from cash flows from operations as well as its financial resources, which include a cash balance of $63,484 as at February 3, 2018, the Revolving Facility (Note 14) and through its issuances of common shares (Note 17). The Board does not establish quantitative return on capital criteria for management, but rather promotes year-over-year sustainable profitable growth. The Company is not subject to any externally imposed capital requirements. The Company is subject to certain non‑financial covenants related to its Revolving Facility, all of which were met as at February 3, 2018 and January 28, 2017. There has been no change with respect to the overall capital risk management strategy during the years ended February 3, 2018 and January 28, 2017.

GUARANTEES

GUARANTEES	12 Months Ended
	Feb. 03, 2018
GUARANTEES
GUARANTEES	26. GUARANTEES Some agreements to which the Company is party, specifically those related to debt agreements and the leasing of its premises, include indemnification provisions that may require the Company to make payments to a third party for breach of fundamental representation and warranty terms in the agreements, with respect to matters such as corporate status, title of assets, environmental issues, consents to transfer, employment matters, litigation, taxes payable and other potential material obligations. The maximum potential amount of future payments that the Company could be required to make under these indemnification provisions is not reasonably quantifiable as certain indemnifications are not subject to a monetary limitation. As at February 3, 2018, management does not believe that these indemnification provisions would require any material cash payment by the Company, and insurance coverage, estimated by management to be reasonable and sufficient, exists in order to minimize the previously mentioned risks. The Company indemnifies its directors and officers against claims reasonably incurred and resulting from the performance of their services to the Company, and maintains liability insurance for its directors and officers as well as those of its subsidiary.

SIGNIFICANT ACCOUNTING POLICI32

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Feb. 03, 2018
SIGNIFICANT ACCOUNTING POLICIES
Basis of consolidation	Basis of consolidation The consolidated financial statements include the accounts of the Company and its wholly owned U.S. subsidiary, DAVIDsTEA (USA) Inc. The financial statements of the subsidiary are prepared for the same reporting period as the parent company, using consistent accounting policies. All intercompany transactions, balances and unrealized gains or losses have been eliminated.
Basis of measurement	Basis of measurement These consolidated financial statements have been prepared on the historical cost basis except for the following material items: · Derivative financial instruments are measured at fair value; and · Provisions for onerous contracts are measured at the present value of the expenditures expected to settle the obligations.
Functional and presentation currency	Functional and presentation currency These consolidated financial statements are presented in Canadian dollars, which is the parent Company’s functional currency.
Cash	Cash Cash on the consolidated balance sheet comprises cash at banks and on hand.
Inventory valuation	Inventory valuation Inventories are measured at the lower of cost and net realizable value. Cost is determined using the weighted average cost method. Costs include the cost of purchase and transportation costs that are directly incurred to bring the inventories to their present location, and duty. Net realizable value is the estimated selling price of inventory in the ordinary course of business, less any estimated selling costs. Cost also includes realized gains and losses on forward contracts designated as cash flow hedges of U.S. inventory purchases.
Property and equipment	Property and equipment Property and equipment are initially recorded at cost and are depreciated over their useful economic life. Cost includes expenditures that are directly attributable to the acquisition of the asset, including any costs directly related to bringing the asset to a working condition for its intended use. The residual values, useful lives and methods of depreciation of property and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. All repair and maintenance costs are recognized in net income (loss) as incurred. Depreciation of an asset begins once it becomes available for use. Depreciation is charged to income on the following bases: Furniture and equipment 20 % declining balance Computer hardware 30 % declining balance Leasehold improvements are depreciated on a straight‑line basis over the lesser of the useful economic life and the initial term of the leases, plus one renewal option period, not to exceed 10 years. Any gain or loss arising on the disposal or derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in net income (loss) when the asset is derecognized.
Intangible assets	Intangible assets Intangible assets consist of computer software, trademarks and patents. Intangible assets are initially recorded at cost. Intangible assets with finite lives are amortized over their useful economic life. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in income (loss) as the expense category that is consistent with the function of the intangible assets. Any gain or loss arising on the disposal or derecognition of the intangible asset (calculated as the difference between the net disposal proceeds and the carrying amount of the intangible asset) is included in net income (loss) when the intangible asset is derecognized. When computer software is not an integral part of a related item of computer hardware, the software is treated as an intangible. Computer software is amortized on the basis of its estimated useful life using the declining method at the rate of 30%.
Leases	Leases Leases are classified as either operating or finance, based on the substance of the transaction at inception of the lease. Classification is re‑assessed if the terms of the lease are changed. Leases in which a significant portion of the risks and rewards of ownership are not assumed by the Company are classified as operating leases. The Company carries on its operations in premises under leases of varying terms and renewal options, which are accounted for as operating leases. Payments under an operating lease are recognized in net income (loss) on a straight‑line basis over the term of the lease. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related rent expense on a straight‑line basis and, consequently, records the difference between the recognized rental expense and the amounts payable under the lease as deferred rent. Contingent (sales‑based) rentals are recognized as an expense when incurred.
Store opening costs	Store opening costs Store opening costs are expensed as incurred.
Impairment of financial assets	i. The Company assesses, at each reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired. An impairment exists if one or more events that has occurred since the initial recognition of the asset (an incurred “loss event”) has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.
Impairment of non-financial assets	ii. The Company assesses, at each reporting date, whether there is an indication that an item of property and equipment or an intangible asset may be impaired. If any indication exists, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash‑generating unit’s (“CGU”) fair value less costs of disposal and its value in use. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre‑tax discount rate that reflects current market assessments of the time value of money. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or corporate assets. The discount rate applied to an asset or CGU is the weighted average cost of capital (“WACC”). Management considers factors such as risk-free rate, equity risk premium, size premium, specific business risk premium and cost of debt to derive the WACC. The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover the lease term. Based on the management of operations, the Company has defined each of the commercial premises in which it carries out its activities as a CGU, although where appropriate these premises are aggregated at a district or regional level to form a CGU. An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased and if there has been a change in the assumptions used to determine the asset’s recoverable amount. The reversal is limited to the extent that an asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, had no impairment loss been recognized. Such reversal is recognized in net income (loss).
Derivative financial instruments and hedge accounting	Derivative financial instruments and hedge accounting The Company enters into foreign exchange forward contracts to hedge its foreign currency risks, resulting from variability in foreign currency exchange rates on inventory purchases, as described in Note 24. Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. For the purpose of hedge accounting, hedges are classified as cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction. At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated. The Company has applied hedge accounting for its foreign exchange forward contracts and has designated them as cash flow hedges. The effective portion of the gain or loss on the hedging instrument is recognized directly in Other Comprehensive Income (Loss) (“OCI”), while any ineffective portion is recognized immediately in net income (loss). The amounts recognized in OCI are reclassified to inventory when such non-financial asset is recognized on the balance sheet, and to net income (loss) when inventory is subsequently sold.
Provisions	Provisions Provisions are recognized when the Company has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of income (loss) net of any reimbursement. All provisions are reviewed at each reporting date and adjusted to reflect the current best estimates. If the effect of the time value of money is material, provisions are discounted using a current pre‑tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Deferred lease inducements	Deferred lease inducements The deferred lease inducements are composed of free rent and construction allowances obtained upon signing of lease agreements for certain retail stores. They are amortized on a straight‑line basis over the term of the related leases, plus one renewal option, to a maximum of 10 years.
Share capital	Share capital i. Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares are recognized as a deduction from equity, net of any tax effects. Common shares are classified as equity if they are non‑redeemable or redeemable only at the Company’s option, and any dividends are discretionary. Dividends thereon are recognized as distributions within equity on approval by the Company’s Board of Directors. ii. Preferred shares are classified as a financial liability if they are redeemable on a specific date or at the option of the shareholders. Dividends thereon are recognized as interest expense in net income (loss) as accrued. . iii. Hybrid financial instruments issued by the Company comprise convertible preferred shares that can be converted to common shares at the option of the holders, when the number of shares to be issued is not fixed. The equity components on such instruments are separated from the debt host contract (preferred shares redeemable at the option of the holders) and accounted for separately if the economic characteristics and risks of the debt host contract and the embedded derivative (equity components) are not closely related. iv. The Company issued liability‑classified derivatives and embedded derivatives over its Series A, A‑1 and A‑2 preferred shares. Embedded derivatives are separated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are not closely related, a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative and the combined instrument is not measured at fair value through income (loss). Derivatives and separable embedded derivatives are recognized initially at fair value and attributable transaction costs are recognized in income (loss) as incurred. Subsequent to initial recognition, derivatives and separable embedded derivatives are measured at fair value and all changes in their fair value are recognized immediately in income (loss).
Stock-based compensation	Stock‑based compensation The Company has a stock option plan for employees and directors from which options to purchase common shares are issued (the “Plan”). Options may not be granted with an exercise price of less than the fair value of the underlying shares at the grant date. The awards have no cash settlement alternatives. The vesting requirements are typically service‑based and the options normally have a contractual life of seven years. The fair value of stock‑based compensation awards granted to employees is measured at the grant date using the Black Scholes option pricing model. Measurement inputs include the share price of the underlying shares on the measurement date, the exercise price of the option, the expected volatility (based on weighted average historical volatility of comparable companies adjusted for changes expected based on publicly available information), the weighted average expected life of the option (based on historical experience), expected dividends, and the risk‑free interest rate (based on government bonds). The value of the compensation expense is recognized over the vesting period of the stock options as an expense included in selling and general administration expenses, with a corresponding increase to contributed surplus in equity. The amount recognized as an expense is adjusted to reflect the Company’s best estimate of the number of awards that will ultimately vest. No expense is recognized for awards that do not ultimately vest. Any consideration paid by plan participants on the exercise of stock options and the previously recognized compensation cost of the options exercised included in contributed surplus are credited to share capital. Under the Company’s 2015 Omnibus Equity Incentive Plan (the “2015 Omnibus Plan”), selected employees and directors are granted RSUs where each RSU has a value equal to one common share. The compensation expense is recorded at the fair value of the Company’s common shares at the grant date over the vesting period (generally one to three years) with a corresponding credit to contributed surplus for equity-settled RSUs and a corresponding credit to a liability for cash-settled RSUs. RSUs may be settled in shares, cash, or a combination of cash or shares upon vesting at the discretion of the Company. Cash settled RSUs are revalued at each reporting date to reflect their fair value at that date. Fair value is determined using the closing price of the Company’s common shares on the NASDAQ Global Market prior to the date of the grant. The Company has not issued any cash settled awards to date.
Revenue recognition	Revenue recognition Revenue from retail sales is recorded upon delivery to the customer. Revenue is recognized on e-commerce sales when merchandise is delivered. Revenues are recorded net of discounts, rebates, estimated returns, sales taxes and amounts deferred related to the issuance of Frequent Steeper points. i. Gift cards sold are recorded as deferred revenue and revenue is recognized at the time of redemption or in accordance with the Company’s accounting policy for breakage. Breakage income represents the estimated value of gift cards that is not expected to be redeemed by customers and is estimated based on historical redemption patterns. Gift card breakage is included in sales in the consolidated statement of income (loss). ii. The Frequent Steeper loyalty and rewards program allows customers to earn points when they purchase products in the Company’s retail stores and on the Company’s website. Points can be redeemed for free tea or free beverages, depending on the number of points a customer has obtained over a limited collection period. Free tea offers are issued at the end of each collection period and must be redeemed within 60 days from the effective date. Free beverage offers are issued at the end of the calendar collection period and must be redeemed within 60 days from the effective date. The fair value of points issued is recorded as deferred revenue and recognized as revenue only when the points are redeemed for free products or when the related points expire. The fair value of Frequent Steeper points is determined based on the estimated selling price of the product for which the point is expected to be redeemed, net of points we do not expect to be redeemed. On an ongoing basis, the Company monitors historical redemption rates. Points revenue is included with total sales in the consolidated statement of income (loss).
Finance income	Finance income Interest income is recognized as interest accrues using the effective interest method.
Income taxes	Income taxes Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in net income (loss) except to the extent that they relate to items recognized directly in equity or in other comprehensive income. Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered or paid. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. The Company uses the liability method of accounting for deferred income taxes, which requires the establishment of deferred tax assets and liabilities for all temporary differences caused when the tax bases of assets and liabilities differ from their carrying amounts reported in the consolidated financial statements. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the temporary differences when they reverse, based on tax rates that have been enacted or substantively enacted at the end of the reporting period. The Company recognizes deferred income tax assets for unused tax losses and deductible temporary differences only to the extent that, in management’s opinion, it is probable that future taxable income will be available against which they can be utilized. Deferred income tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority and the Company intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
Earnings per share	Earnings per share Basic earnings per share are calculated using the weighted average number of shares outstanding during the period. The diluted earnings per share are calculated by adjusting the weighted average number of shares outstanding to include additional shares issued from the assumed conversion of preferred shares and the exercise of stock options and RSUs, if dilutive. For stock options, the number of additional shares is calculated by assuming that the proceeds from such exercises, as well as the amount of unrecognized stock-based compensation which is considered to be assumed proceeds, are used to purchase common shares at the average market price during the reporting period.
Financial instruments	Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments are recognized depending on their classification with changes in subsequent measurements being recognized in income or loss or in other comprehensive income (“OCI”). The Company has made the following classifications: · Cash and derivative financial instruments are classified as “Fair Value through Profit or Loss”, and measured at fair value. Changes in fair value are recorded in income (loss). · Accounts and other receivables are classified as “Loans and Receivables”. After their initial fair value measurement, they are measured at amortized cost using the effective interest rate method. · Trade and other payables are classified as “Other Financial Liabilities”. After their initial fair value measurement, they are measured at amortized cost using the effective interest rate method.
Foreign currency translation	Foreign currency translation Revenues, expenses and non-monetary assets and liabilities denominated in foreign currencies are recorded at the rate of exchange prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates prevailing at the balance sheet date. Unrealized and realized translation gains and losses are reflected in net income (loss). The assets and liabilities of the Company’s U.S. wholly owned subsidiary, whose functional currency is the U.S. dollar, are translated into Canadian dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at average exchange rates for the year. Differences arising from the exchange rate changes are included in OCI in the cumulative translation account. Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance is considered to form part of the net investment in the foreign operation, are recognized in other comprehensive income in the cumulative translation account and reclassified from equity to net income (loss) on disposal of the net investment.

SIGNIFICANT ACCOUNTING POLICI33

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Feb. 03, 2018
SIGNIFICANT ACCOUNTING POLICIES
Schedule of bases used for charging depreciation	Furniture and equipment 20 % declining balance Computer hardware 30 % declining balance

ACCOUNTS AND OTHER RECEIVABLES

ACCOUNTS AND OTHER RECEIVABLES (Tables)	12 Months Ended
	Feb. 03, 2018
ACCOUNTS AND OTHER RECEIVABLES
Schedule of accounts and other receivables	February 3, January 28, 2018 2017 $ $ Credit card cash clearing receivables 1,291 1,537 Other receivables 1,840 1,948 3,131 3,485

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Feb. 03, 2018
INVENTORIES
Schedule of Inventory	February 3, January 28, 2018 2017 $ $ Finished goods 17,600 24,504 Goods in transit 4,608 5,463 Packaging 2,242 1,297 24,450 31,264

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Feb. 03, 2018
PROPERTY AND EQUIPMENT
Schedule of property plant and equipment	Leasehold Furniture and Computer improvements equipment hardware Total $ $ $ $ Cost Balance, January 30, 2016 60,520 8,270 3,156 71,946 Acquisitions 16,571 3,135 825 20,531 Disposals (404) (104) — (508) Cumulative translation adjustment (1,132) (116) (33) (1,281) Balance, January 28, 2017 75,555 11,185 3,948 90,688 Acquisitions 6,581 1,808 1,245 9,634 Disposals — (187) — (187) Cumulative translation adjustment (1,503) (167) (49) (1,719) Balance, February 3, 2018 80,633 12,639 5,144 98,416 Leasehold Furniture and Computer improvements equipment hardware Total $ $ $ $ Accumulated depreciation and impairment Balance, January 30, 2016 19,918 3,332 1,366 24,616 Depreciation 6,210 1,211 648 8,069 Impairment 6,764 615 137 7,516 Disposals (91) (61) — (152) Cumulative translation adjustment (459) (49) (13) (521) Balance, January 28, 2017 32,342 5,048 2,138 39,528 Depreciation 6,394 1,357 680 8,431 Impairment 13,491 1,148 430 15,069 Disposals — (105) — (105) Cumulative translation adjustment (931) (102) (32) (1,065) Balance, February 3, 2018 51,296 7,346 3,216 61,858 Net Carrying Value Balance, January 28, 2017 43,213 6,137 1,810 51,160 Balance, February 3, 2018 29,337 5,293 1,928 36,558

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Feb. 03, 2018
INTANGIBLE ASSETS
Schedule of intangible assets	Computer software Other Total $ $ $ Cost Balance, January 30, 2016 4,856 275 5,131 Acquisitions 1,468 16 1,484 Cumulative translation adjustment (3) (12) (15) Balance, January 28, 2017 6,321 279 6,600 Acquisitions 2,962 — 2,962 Cumulative translation adjustment (4) (10) (14) Balance, February 3, 2018 9,279 269 9,548 Accumulated amortization Balance, January 30, 2016 2,828 61 2,889 Amortization 739 19 758 Cumulative translation adjustment (2) (3) (5) Balance, January 28, 2017 3,565 77 3,642 Amortization 1,456 18 1,474 Cumulative translation adjustment (2) (5) (7) Balance, February 3, 2018 5,019 90 5,109 Net Carrying Value Balance, January 28, 2017 2,756 202 2,958 Balance, February 3, 2018 4,260 179 4,439

TRADE AND OTHER PAYABLES (Table

TRADE AND OTHER PAYABLES (Tables)	12 Months Ended
	Feb. 03, 2018
TRADE AND OTHER PAYABLES
Schedule of trade and other payables	February 3, January 28, 2018 2017 $ $ Trade payable and accrued liabilities 11,221 13,990 Government remittances 186 1,860 Wages, salaries and employee benefits payable 2,985 3,831 14,392 19,681

DEFERRED REVENUE (Tables)

DEFERRED REVENUE (Tables)	12 Months Ended
	Feb. 03, 2018
DEFERRED REVENUE
Schedule of deferred revenue	February 3, January 28, 2018 2017 $ $ Gift cards liability 3,982 3,263 Loyalty program liability 1,204 1,622 5,186 4,885

PROVISIONS (Tables)

PROVISIONS (Tables)	12 Months Ended
	Feb. 03, 2018
PROVISIONS
Schedule of reconciliation of provisions	For the year ended February 3, 2018 $ Opening balance 8,494 Utilization (2,467) Additions 14,073 Reversals (3,752) Settlements (132) Accretion expense 2,292 Cumulative translation adjustment (355) Ending balance 18,153 Less: Current portion (4,693) Long-term portion of provisions 13,460

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Feb. 03, 2018
COMMITMENTS AND CONTINGENCIES
Schedule of future minimum lease payments under operating leases	February 3, January 28, 2018 2017 $ $ Within one year 19,840 19,306 After one year but not more than five years 86,844 90,891 More than five years 28,281 38,239 134,965 148,436

SHARE CAPITAL (Tables)

SHARE CAPITAL (Tables)	12 Months Ended
	Feb. 03, 2018
SHARE CAPITAL
Summary of authorized, issued, and outstanding shares	Authorized A unlimited number of common shares. Common shares # Number of shares in issuance Balance, January 30, 2016 24,037,472 Issuance of common shares upon exercise of options 1,236,154 Issuance of common shares upon vesting of restricted stock units 57,325 Balance, January 28, 2017 25,330,951 Issuance of common shares upon exercise of options 456,773 Issuance of common shares upon vesting of restricted stock units 97,648 Balance, February 3, 2018 25,885,372 Issued and outstanding February 3, January 28, 2018 2017 $ $ 25,885,372 Common shares [January 28, 2017 - 25,330,951 shares] 111,692 263,828 111,692 263,828
Summary of fair value assumptions for share options granted	For the year ended February 3, January 28, 2018 2017 Risk-free interest rate % % Expected volatility % % Expected option life years years Expected dividend yield % % Exercise price $ $
Summary of stock option plan and periodic changes	For the year ended February 3, January 28, 2018 2017 Weighted Weighted average average Options exercise Options exercise outstanding price outstanding price # $ # $ Outstanding, beginning of year 933,195 5.63 2,146,880 3.04 Issued 161,980 9.76 174,031 14.67 Exercised (456,773) 3.90 (1,236,154) 2.25 Forfeitures (190,623) 9.63 (151,562) 6.99 Outstanding, end of year 447,779 7.18 933,195 5.63 Exercisable, end of year 304,415 5.57 624,813 4.69
Summary of information, by exercise price range, of stock options outstanding	Weighted Number of Number average Weighted options Weighted outstanding at contractual average exercisable at average February 3, remaining exercise February 3, exercise 2018 life price 2018 price Range of exercise prices # (years) $ # $ $0.77 $3.33 - $4.31 $8.76 - $10.28 $14.39 - $17.99 As at February 3, 2018 Weighted Number of Number average Weighted options Weighted outstanding at contractual average exercisable at average January 28, remaining exercise January 28, exercise 2017 life price 2017 price Range of exercise prices # (years) $ # $ $0.77 $3.33 - $4.31 $14.39 - $17.99 48,010 15 As at January 28, 2017
Summary of the status of the RSU plan and periodic changes	For the year ended February 3, January 28, 2018 2017 Weighted Weighted average average RSUs fair value RSUs fair value outstanding per unit (1) outstanding per unit (1) # $ # $ Outstanding, beginning of year 252,233 12.42 252,720 7.39 Granted 298,897 8.59 194,855 15.11 Forfeitures (89,035) 10.03 (78,184) 9.68 Vested (97,648) 11.85 (57,325) 7.82 Vested, withheld for tax (75,031) 11.28 (59,833) 7.90 Outstanding, end of year 289,416 9.70 252,233 12.42 (1) Weighted average fair value per unit as at date of grant.

FINANCE COSTS (Tables)

FINANCE COSTS (Tables)	12 Months Ended
	Feb. 03, 2018
FINANCE COSTS
Schedule of finance costs	February 3, January 28, January 30, 2018 2017 2016 $ $ $ Interest on loan from the controlling shareholder [note 15] — — 48 Interest and financing fees on term loan and Revolving Facility [note 14] 79 75 544 Interest on finance lease — — 19 Accrued dividends on preferred shares — Series A, A-1 and A-2 [note 16] — — 438 Other finance costs — 1 2 Accretion on provisions 2,292 — — 2,371 76 1,051

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Feb. 03, 2018
INCOME TAXES
Schedule of the reconciliation of the statutory income tax rate to the effective tax rate	For the year ended February 3, January 28, January 30, 2018 2017 2016 % $ % $ % $ Income tax recovery — statutory rate 26.8 (7,097) 26.5 (1,564) 26.5 (34,729) Increase (decrease) in provision for income tax (recovery) resulting from: Non-deductible items (1.6) 437 (10.1) 598 — — Loss from embedded derivative and accretion of Series A, A-1, and A-2 preferred shares — — — — (28.7) 37,506 Stock based compensation — — — — (0.6) 769 Effect of substantively enacted income tax rate changes (7.9) 2,090 — — — — Unrecognized deferred income tax assets (16.7) 4,415 — — Write-down of deferred income tax assets (7.8) 2,054 — — Other (0.4) 111 21.5 (1,269) (0.9) 1,122 Income tax provision (recovery) — effective tax rate (7.6) 2,010 37.9 (2,235) (3.7) 4,668
Schedule of the breakdown of the income tax provision (recovery)	For the year ended February 3, January 28, January 30, 2018 2017 2016 $ $ $ Income tax provision (recovery) Current (1,575) 2,145 3,304 Deferred 3,585 (4,380) 1,364 2,010 (2,235) 4,668
Schedule of the tax effects of temporary differences and net operating losses	February 3, January 28, 2018 2017 $ $ Deferred income tax assets U.S. operating losses carried forward 1,259 2,439 Deferred rent 1,662 1,885 Stock options 3,401 5,647 Financing fees and IPO-related costs 1,197 1,801 Lease inducements 515 664 Provisions 4,812 3,365 Others 2,346 1,175 Total deferred income tax assets 15,192 16,976 Deferred income tax liabilities Carrying values of property and equipment in excess of tax basis (158) (2,171) Unrealized foreign exchange gain on derivative financial instruments 62 (121) Unrecognized deferred income tax asset (9,789) — Unrealized foreign exchange gain related to intercompany advances (113) (309) Total deferred income tax liabilities (9,998) (2,601) Net deferred income tax assets (liabilities) 5,194 14,375
Schedule of the changes in the net deferred income tax asset	February 3, January 28, 2018 2017 $ $ Balance net, beginning of year 14,375 7,877 Deferred rent (222) 385 Recognition of U.S. operating losses carried forward (1,180) (1,340) Carrying value of property and equipment in excess of tax losses 2,013 554 Stock options (2,245) 1,493 Financing fees and IPO-related costs (604) (664) Foreign exchange gain on derivative financial instrument 183 793 Unrealized foreign exchange gain on intercompany advances 196 668 Lease inducement (149) 437 Unrecognized deferred income tax asset (9,789) — Provisions 1,447 3,090 Others 1,169 1,082 Deferred income tax assets net, end of year 5,194 14,375

SELLING, GENERAL AND ADMINIST45

SELLING, GENERAL AND ADMINISTRATION EXPENSES (Tables)	12 Months Ended
	Feb. 03, 2018
SELLING, GENERAL AND ADMINISTRATION EXPENSES
Schedule of selling, general and administrative expenses	For the year ended February 3, January 28, January 30, 2018 2017 2016 $ $ $ Wages, salaries and employee benefits 65,888 61,143 50,671 Depreciation of property and equipment 8,431 8,069 5,832 Amortization of intangible assets 1,474 758 613 Loss on disposal of property and equipment 82 356 297 Impairment of property and equipment 15,069 7,516 — Provision (recovery) for onerous contracts 10,321 8,140 (265) Stock-based compensation 2,021 2,264 1,749 Executive and employee separation costs related to salary 2,033 835 — Other selling, general and administration 26,611 25,675 21,219 131,930 114,756 80,116

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Feb. 03, 2018
EARNINGS PER SHARE
Schedule of reconciliation of basic and diluted EPS	February 3, January 28, January 30, 2018 2017 2016 $ $ $ Net loss for basic EPS (28,501) (3,688) (131,431) Weighted average number of shares outstanding — basic and diluted 25,716,186 24,699,290 19,776,946

RELATED PARTY DISCLOSURES (Tabl

RELATED PARTY DISCLOSURES (Tables)	12 Months Ended
	Feb. 03, 2018
RELATED PARTY DISCLOSURES
Schedule of compensation earned by key management personnel	February 3, January 28, January 30, 2018 2017 2016 $ $ $ Wages, salaries and bonus 3,255 2,741 3,600 Termination benefits 1,485 719 — Stock-based compensation 1,035 1,377 1,177 Total compensation earned by key management personnel 5,775 4,837 4,777

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
	Feb. 03, 2018
SEGMENT INFORMATION
Schedule of revenue by product	February 3, January 28, January 30, 2018 2017 2016 $ $ $ Tea 156,125 143,280 120,022 Tea accessories 49,470 53,807 43,191 Food and beverages 18,420 18,897 17,477 224,015 215,984 180,690
Schedule of property and equipment and intangible assets by country	February 3, January 28, January 30, 2018 2017 2016 $ $ $ Canada 37,234 41,432 35,915 US 3,763 12,686 13,657 Total 40,997 54,118 49,572
Schedule of gross profit per country	For the year ended February 3, 2018 Canada US Consolidated $ $ $ Sales 185,287 38,728 224,015 Cost of sales 93,383 23,389 116,772 Gross profit 91,904 15,339 107,243 Selling, general and administration expenses (allocated) 54,884 18,302 73,186 Impairment of property and equipment 5,114 9,955 15,069 Provision for onerous contracts 1,752 6,102 7,854 Results from operating activities before corporate expenses 30,154 (19,020) 11,134 Selling, general and administration expenses (non-allocated) 35,821 Results from operating activities (24,687) Finance costs 2,371 Finance income (567) Loss before income taxes (26,491) For the year ended January 28, 2017 Canada US Consolidated $ $ $ Sales 180,380 35,604 215,984 Cost of sales 86,473 21,061 107,534 Gross profit 93,907 14,543 108,450 Selling, general and administration expenses (allocated) 49,466 16,584 66,050 Impairment of property and equipment 1,116 6,400 7,516 Provision for onerous contracts 427 7,713 8,140 Results from operating activities before corporate expenses 42,898 (16,154) 26,744 Selling, general and administration expenses (non-allocated) 33,050 Results from operating activities (6,306) Finance costs 76 Finance income (479) Loss before income taxes (5,903) For the year ended January 30, 2016 Canada US Consolidated $ $ $ Sales 156,186 24,504 180,690 Cost of sales 71,657 13,702 85,359 Gross profit 84,529 10,802 95,331 Selling, general and administration expenses (allocated) 41,174 11,405 52,579 Recovery for onerous contracts — (265) (265) Results from operating activities before corporate expenses 43,355 (338) 43,017 Selling, general and administration expenses (non-allocated) 27,802 Results from operating activities 15,215 Finance costs 1,051 Finance income (348) Accretion of preferred shares 401 Loss from embedded derivative on Series A, A-1 and A-2 Preferred Shares 140,874 Loss before income taxes (126,763)

FINANCIAL RISK MANAGEMENT (Tabl

FINANCIAL RISK MANAGEMENT (Tables)	12 Months Ended
	Feb. 03, 2018
FINANCIAL RISK MANAGEMENT
Summary of foreign exchange exposure	February 3, January 28, 2018 2017 US$ US$ Cash 5,686 690 Accounts receivable 882 1,188 Accounts payable 2,555 2,461
Summary of nominal and contract values of foreign exchange contracts	The nominal and contract values of foreign exchange contracts outstanding as at February 3, 2018 are as follows: Range of Nominal Nominal Unrealized Contractual value value gain/(loss) exchange rate US$ C$ Term C$ Purchase contracts U.S. dollar 1.2221 - 1.3050 24,100 30,033 February 2018 to September 2018 (229) The nominal and contract values of foreign exchange contracts outstanding as at January 28, 2017 are as follows: Range of Nominal Nominal Unrealized Contractual value value gain exchange rate US$ C$ Term C$ Purchase contracts U.S. dollar 1.2696 - 1.3098 32,700 42,404 February 2017 to October 2017 454
Summary of obligations and the effect such obligations are expected to have on liquidity and cash flows	February 3, 2018 Payments due by period less than Between More than Total 1 year 1 and 5 years 5 years Trade and other payables 14,392 14,392 — — Operating lease obligations 134,965 19,840 86,844 28,281 Purchase obligations 8,820 8,820 — — 158,177 43,052 86,844 28,281 January 28, 2017 Payments due by period less than Between More than Total 1 year 1 and 5 years 5 years Trade and other payables 19,681 19,681 — — Operating lease obligations 148,436 19,306 90,891 38,239 Purchase obligations 5,842 5,842 — — 173,959 44,829 90,891 38,239
Summary of classification of financial instruments	February 3, 2018 January 28, 2017 Carrying Fair Carrying Fair value value value value $ $ $ $ Financial assets Derivative financial instruments — foreign forward exchange contracts 239 239 463 463 Financial liabilities Derivative financial instruments — foreign forward exchange contracts 468 468 9 9

MANAGEMENT OF CAPITAL (Tables)

MANAGEMENT OF CAPITAL (Tables)	12 Months Ended
	Feb. 03, 2018
MANAGEMENT OF CAPITAL
Schedule of composition of capital	February 3, January 28, 2018 2017 $ $ Total debt — — Shareholder’s equity [excluding accumulated other comprehensive income] 99,613 130,263 Total capital under management 99,613 130,263

BASIS OF PREPARATION - Stock sp

BASIS OF PREPARATION - Stock split and fiscal year (Details)	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Basis of preparation
Fiscal period (in weeks)	371 days	364 days	364 days
Bottom of range
Basis of preparation
Fiscal period (in weeks)	364 days
Top of range
Basis of preparation
Fiscal period (in weeks)	371 days

SIGNIFICANT ACCOUNTING POLICI52

SIGNIFICANT ACCOUNTING POLICIES - Property and equipment and assets under finance leases (Details)	12 Months Ended
	Feb. 03, 2018Option
Furniture and equipment
Property and equipment and assets under finance leases
Depreciation percentage rate	20.00%
Computer hardware
Property and equipment and assets under finance leases
Depreciation percentage rate	30.00%
Leasehold improvements
Property and equipment and assets under finance leases
Number of extension options	1
Leasehold improvements | Top of range
Property and equipment and assets under finance leases
Optional renewal term (in years)	10 years

SIGNIFICANT ACCOUNTING POLICI53

SIGNIFICANT ACCOUNTING POLICIES - Intangible assets (Details)	12 Months Ended
	Feb. 03, 2018
Computer software
Intangible assets
Amortisation percentage rate	30.00%

SIGNIFICANT ACCOUNTING POLICI54

SIGNIFICANT ACCOUNTING POLICIES - Deferred Lease Inducements (Details) - Leasehold improvements	12 Months Ended
	Feb. 03, 2018Option
Deferred lease inducements
Number of extension options	1
Top of range
Deferred lease inducements
Optional renewal term (in years)	10 years

SIGNIFICANT ACCOUNTING POLICI55

SIGNIFICANT ACCOUNTING POLICIES - Stock-based compensation (Details)	12 Months Ended
	Feb. 03, 2018shares
Stock options
Stock-based compensation
Contractual life of award (in years)	7 years
Stock options | Bottom of range
Stock-based compensation
Vesting life of share-based awards	36 months
Stock options | Top of range
Stock-based compensation
Vesting life of share-based awards	48 months
RSUs
Stock-based compensation
Value of award, expressed in equivalent number of common shares	1
RSUs | Bottom of range
Stock-based compensation
Vesting life of share-based awards	1 year
RSUs | Top of range
Stock-based compensation
Vesting life of share-based awards	3 years
RSUs - cash settled awards
Stock-based compensation
Number of awards issued (in shares)	0

SIGNIFICANT ACCOUNTING POLICI56

SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Gift cards
Revenue recognition
Deferred revenue recognized	$ 575	$ 850
Loyalty program
Revenue recognition
Redemption period (in days)	60 days

ACCOUNTS AND OTHER RECEIVABLE57

ACCOUNTS AND OTHER RECEIVABLES (Details) - CAD ($) $ in Thousands	Feb. 03, 2018	Jan. 28, 2017
ACCOUNTS AND OTHER RECEIVABLES
Credit card cash clearing receivables	$ 1,291	$ 1,537
Other receivables	1,840	1,948
Total	$ 3,131	$ 3,485

INVENTORIES - By Class (Details

INVENTORIES - By Class (Details) - CAD ($) $ in Thousands	Feb. 03, 2018	Jan. 28, 2017
INVENTORIES
Finished goods	$ 17,600	$ 24,504
Goods in transit	4,608	5,463
Packaging	2,242	1,297
Total current inventories	$ 24,450	$ 31,264

INVENTORIES - Cost of sales and

INVENTORIES - Cost of sales and write-downs (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Cost of inventories
Inventories recognized	$ 64,611	$ 62,995
Inventory write-down	0	$ 869
Reversed inventory written down	$ 730

PROPERTY AND EQUIPMENT - Cost (

PROPERTY AND EQUIPMENT - Cost (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Property and equipment, net
Balance, at beginning of the period	$ 51,160
Balance, at end of the period	36,558	$ 51,160
Cost
Property and equipment, net
Balance, at beginning of the period	90,688	71,946
Acquisitions	9,634	20,531
Disposals	(187)	(508)
Cumulative translation adjustment	(1,719)	(1,281)
Balance, at end of the period	98,416	90,688
Leasehold improvements
Property and equipment, net
Balance, at beginning of the period	43,213
Balance, at end of the period	29,337	43,213
Leasehold improvements | Cost
Property and equipment, net
Balance, at beginning of the period	75,555	60,520
Acquisitions	6,581	16,571
Disposals		(404)
Cumulative translation adjustment	(1,503)	(1,132)
Balance, at end of the period	80,633	75,555
Furniture and equipment
Property and equipment, net
Balance, at beginning of the period	6,137
Balance, at end of the period	5,293	6,137
Furniture and equipment | Cost
Property and equipment, net
Balance, at beginning of the period	11,185	8,270
Acquisitions	1,808	3,135
Disposals	(187)	(104)
Cumulative translation adjustment	(167)	(116)
Balance, at end of the period	12,639	11,185
Computer hardware
Property and equipment, net
Balance, at beginning of the period	1,810
Balance, at end of the period	1,928	1,810
Computer hardware | Cost
Property and equipment, net
Balance, at beginning of the period	3,948	3,156
Acquisitions	1,245	825
Cumulative translation adjustment	(49)	(33)
Balance, at end of the period	$ 5,144	$ 3,948

PROPERTY AND EQUIPMENT - Accumu

PROPERTY AND EQUIPMENT - Accumulated Depreciation (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Property and equipment, net
Balance, at beginning of the period	$ (51,160)
Depreciation	8,431	$ 8,069	$ 5,832
Impairment	15,935	7,516	0
Balance, at end of the period	(36,558)	(51,160)
Accumulated depreciation and impairment
Property and equipment, net
Balance, at beginning of the period	39,528	24,616
Depreciation	8,431	8,069
Impairment	15,069	7,516
Disposals	(105)	(152)
Cumulative translation adjustment	(1,065)	(521)
Balance, at end of the period	61,858	39,528	24,616
Leasehold improvements
Property and equipment, net
Balance, at beginning of the period	(43,213)
Balance, at end of the period	(29,337)	(43,213)
Leasehold improvements | Accumulated depreciation and impairment
Property and equipment, net
Balance, at beginning of the period	32,342	19,918
Depreciation	6,394	6,210
Impairment	13,491	6,764
Disposals		(91)
Cumulative translation adjustment	(931)	(459)
Balance, at end of the period	51,296	32,342	19,918
Furniture and equipment
Property and equipment, net
Balance, at beginning of the period	(6,137)
Balance, at end of the period	(5,293)	(6,137)
Furniture and equipment | Accumulated depreciation and impairment
Property and equipment, net
Balance, at beginning of the period	5,048	3,332
Depreciation	1,357	1,211
Impairment	1,148	615
Disposals	(105)	(61)
Cumulative translation adjustment	(102)	(49)
Balance, at end of the period	7,346	5,048	3,332
Computer hardware
Property and equipment, net
Balance, at beginning of the period	(1,810)
Balance, at end of the period	(1,928)	(1,810)
Computer hardware | Accumulated depreciation and impairment
Property and equipment, net
Balance, at beginning of the period	2,138	1,366
Depreciation	680	648
Impairment	430	137
Cumulative translation adjustment	(32)	(13)
Balance, at end of the period	$ 3,216	$ 2,138	$ 1,366

PROPERTY AND EQUIPMENT - Net Ca

PROPERTY AND EQUIPMENT - Net Carrying Value (Details) - CAD ($) $ in Thousands	Feb. 03, 2018	Jan. 28, 2017
Property and equipment, net
Balance, end of period	$ 36,558	$ 51,160
Leasehold improvements
Property and equipment, net
Balance, end of period	29,337	43,213
Furniture and equipment
Property and equipment, net
Balance, end of period	5,293	6,137
Computer hardware
Property and equipment, net
Balance, end of period	$ 1,928	$ 1,810

PROPERTY AND EQUIPMENT - Deprec

PROPERTY AND EQUIPMENT - Depreciation, amortization, and impairments (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Depreciation and impairments
Impairment	$ 15,935	$ 7,516	$ 0
Depreciation	8,431	8,069	5,832
Corporate selling, general and administration expenses
Depreciation and impairments
Depreciation	536	556	368
Canada
Depreciation and impairments
Impairment	5,114	1,116	0
Depreciation	6,387	5,583	4,384
US
Depreciation and impairments
Impairment	10,821	6,400	0
Depreciation	1,508	1,930	1,080
CGUs
Depreciation and impairments
Value in use	$ 1,097	$ 472	$ 0
Pre-tax weighted average cost of capital rate	11.90%	13.40%	13.40%
CGUs | US
Depreciation and impairments
Value in use	$ 848
Impairment loss reversed	$ 866	$ 0	$ 0

INTANGIBLE ASSETS - Cost (Detai

INTANGIBLE ASSETS - Cost (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Reconciliation of intangible assets
Balance, beginning of period	$ 2,958
Balance, end of period	4,439	$ 2,958
Computer software
Reconciliation of intangible assets
Balance, beginning of period	2,756
Balance, end of period	4,260	2,756
Other intangible assets
Reconciliation of intangible assets
Balance, beginning of period	202
Balance, end of period	179	202
Cost
Reconciliation of intangible assets
Balance, beginning of period	6,600	5,131
Acquisitions	2,962	1,484
Cumulative translation adjustment	(14)	(15)
Balance, end of period	9,548	6,600
Cost | Computer software
Reconciliation of intangible assets
Balance, beginning of period	6,321	4,856
Acquisitions	2,962	1,468
Cumulative translation adjustment	(4)	(3)
Balance, end of period	9,279	6,321
Cost | Other intangible assets
Reconciliation of intangible assets
Balance, beginning of period	279	275
Acquisitions		16
Cumulative translation adjustment	(10)	(12)
Balance, end of period	$ 269	$ 279

INTANGIBLE ASSETS - Accumulated

INTANGIBLE ASSETS - Accumulated Amortization (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Reconciliation of intangible assets
Balance, beginning of period	$ (2,958)
Amortization	1,474	$ 758	$ 613
Balance, end of period	(4,439)	(2,958)
Computer software
Reconciliation of intangible assets
Balance, beginning of period	(2,756)
Balance, end of period	(4,260)	(2,756)
Other intangible assets
Reconciliation of intangible assets
Balance, beginning of period	(202)
Balance, end of period	(179)	(202)
Accumulated depreciation and impairment
Reconciliation of intangible assets
Balance, beginning of period	3,642	2,889
Amortization	1,474	758
Cumulative translation adjustment	(7)	(5)
Balance, end of period	5,109	3,642	2,889
Accumulated depreciation and impairment | Computer software
Reconciliation of intangible assets
Balance, beginning of period	3,565	2,828
Amortization	1,456	739
Cumulative translation adjustment	(2)	(2)
Balance, end of period	5,019	3,565	2,828
Accumulated depreciation and impairment | Other intangible assets
Reconciliation of intangible assets
Balance, beginning of period	77	61
Amortization	18	19
Cumulative translation adjustment	(5)	(3)
Balance, end of period	$ 90	$ 77	$ 61

TRADE AND OTHER PAYABLES - Summ

TRADE AND OTHER PAYABLES - Summary (Details) - CAD ($) $ in Thousands	Feb. 03, 2018	Jan. 28, 2017
TRADE AND OTHER PAYABLES
Trade payable and accrued liabilities	$ 11,221	$ 13,990
Government remittances	186	1,860
Wages, salaries and employee benefits payable	2,985	3,831
Total	$ 14,392	$ 19,681

DEFERRED REVENUE - Summary (Det

DEFERRED REVENUE - Summary (Details) - CAD ($) $ in Thousands	Feb. 03, 2018	Jan. 28, 2017
DEFERRED REVENUE
Gift cards liability	$ 3,982	$ 3,263
Loyalty program liability	1,204	1,622
Deferred revenue	$ 5,186	$ 4,885

DEFERRED REVENUE - Gift Cards (

DEFERRED REVENUE - Gift Cards (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Gift cards
Deferred revenue
Deferred revenue recognized	$ 575	$ 850

PROVISIONS - Summary (Details)

PROVISIONS - Summary (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Reconciliation of changes in provisions for onerous contracts
Less: Current portion	$ (4,693)	$ (2,562)
Long-term portion of provisions	13,460	$ 5,932
Onerous contracts
Reconciliation of changes in provisions for onerous contracts
Opening balance	8,494
Utilization	(2,467)
Additions	14,073
Reversals	(3,752)
Settlements	(132)
Accretion expense	2,292
Cumulative translation adjustment	(355)
Ending balance	18,153
Less: Current portion	(4,693)
Long-term portion of provisions	$ 13,460

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Operating Lease Commitments (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Operating lease commitments
Contingent rents recognized in income (loss)	$ 1,742	$ 2,312	$ 1,829
Contingent rents accrued as a liability	725	1,001
Rent expense	31,565	29,173	$ 22,679
Future minimum lease payments under operating leases	134,965	148,436
Within one year
Operating lease commitments
Future minimum lease payments under operating leases	19,840	19,306
After one year but not more than five years
Operating lease commitments
Future minimum lease payments under operating leases	86,844	90,891
More than five years
Operating lease commitments
Future minimum lease payments under operating leases	$ 28,281	$ 38,239

REVOLVING FACILITY - Balances (

REVOLVING FACILITY - Balances (Details) - Revolving Facility - CAD ($)	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Revolving Facility
Term of facility	3 years
Principal amount	$ 20,000,000
Accordion feature, additional borrowing capacity	10,000,000
Borrowings	$ 0	$ 0

REVOLVING FACILITY - Terms (Det

REVOLVING FACILITY - Terms (Details) - CAD ($)	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Revolving Facility
Financial covenants
Principal amount	$ 20,000,000
Term of facility	3 years
Letters Of Credit
Financial covenants
Principal amount	$ 2,000,000
Floating Interest Rate, Adjusted Leverage Ratio equal to or less than 3.00:1:00 | Revolving Facility
Financial covenants
Standby fee (as a percent)	0.30%
Floating Interest Rate, Adjusted Leverage Ratio greater than 3.00:1:00 but less than 4.00:1.00 | Revolving Facility
Financial covenants
Standby fee (as a percent)	0.35%
Floating Interest Rate, Adjusted Leverage Ratio greater than 4.00:1:00 | Revolving Facility
Financial covenants
Standby fee (as a percent)	0.45%
Prime Rate | Revolving Facility
Financial covenants
Interest rate, percent	3.45%	2.70%
Prime Rate | Floating Interest Rate, Adjusted Leverage Ratio equal to or less than 3.00:1:00 | Revolving Facility
Financial covenants
Interest rate basis	prime rate
Percentage adjustment to base rate	0.50%
Prime Rate | Floating Interest Rate, Adjusted Leverage Ratio greater than 3.00:1:00 but less than 4.00:1.00 | Revolving Facility
Financial covenants
Interest rate basis	prime rate
Percentage adjustment to base rate	0.75%
Prime Rate | Floating Interest Rate, Adjusted Leverage Ratio greater than 4.00:1:00 | Revolving Facility
Financial covenants
Interest rate basis	prime rate
Percentage adjustment to base rate	1.25%
U.S. Base Rate | Revolving Facility
Financial covenants
Interest rate, percent	5.00%	4.50%
U.S. Base Rate | Floating Interest Rate, Adjusted Leverage Ratio equal to or less than 3.00:1:00 | Revolving Facility
Financial covenants
Interest rate basis	U.S. base rate
Percentage adjustment to base rate	0.50%
U.S. Base Rate | Floating Interest Rate, Adjusted Leverage Ratio greater than 3.00:1:00 but less than 4.00:1.00 | Revolving Facility
Financial covenants
Interest rate basis	U.S. base rate
Percentage adjustment to base rate	0.75%
U.S. Base Rate | Floating Interest Rate, Adjusted Leverage Ratio greater than 4.00:1:00 | Revolving Facility
Financial covenants
Interest rate basis	U.S. base rate
Percentage adjustment to base rate	1.25%
LIBOR | Floating Interest Rate, Adjusted Leverage Ratio equal to or less than 3.00:1:00 | Revolving Facility
Financial covenants
Interest rate basis	LIBOR
Percentage adjustment to base rate	1.50%
LIBOR | Floating Interest Rate, Adjusted Leverage Ratio greater than 3.00:1:00 but less than 4.00:1.00 | Revolving Facility
Financial covenants
Interest rate basis	LIBOR
Percentage adjustment to base rate	1.75%
LIBOR | Floating Interest Rate, Adjusted Leverage Ratio greater than 4.00:1:00 | Revolving Facility
Financial covenants
Percentage adjustment to base rate	2.25%
Banker's acceptance, letter of credit or letter of guarantee | Floating Interest Rate, Adjusted Leverage Ratio equal to or less than 3.00:1:00 | Revolving Facility
Financial covenants
Interest rate basis	Face amount of banker's acceptance, letter of credit or letter of guarantee
Interest rate, percent	1.50%
Banker's acceptance, letter of credit or letter of guarantee | Floating Interest Rate, Adjusted Leverage Ratio greater than 3.00:1:00 but less than 4.00:1.00 | Revolving Facility
Financial covenants
Interest rate basis	Face amount of banker's acceptance, letter of credit or letter of guarantee
Interest rate, percent	1.75%
Banker's acceptance, letter of credit or letter of guarantee | Floating Interest Rate, Adjusted Leverage Ratio greater than 4.00:1:00 | Revolving Facility
Financial covenants
Interest rate basis	Face amount of banker's acceptance, letter of credit or letter of guarantee
Interest rate, percent	2.25%
Bottom of range | Revolving Facility
Financial covenants
Fixed charge ratio	1.25
Tangible net worth covenant amount	$ 30,000,000
Bottom of range | Floating Interest Rate, Adjusted Leverage Ratio greater than 3.00:1:00 but less than 4.00:1.00 | Revolving Facility
Financial covenants
Leverage ratio	3
Bottom of range | Floating Interest Rate, Adjusted Leverage Ratio greater than 4.00:1:00 | Revolving Facility
Financial covenants
Leverage ratio	4
Top of range | Revolving Facility
Financial covenants
Leverage ratio	3
Top of range | Letters Of Credit
Financial covenants
Term of facility	364 days
Top of range | Floating Interest Rate, Adjusted Leverage Ratio equal to or less than 3.00:1:00 | Revolving Facility
Financial covenants
Leverage ratio	3
Top of range | Floating Interest Rate, Adjusted Leverage Ratio greater than 3.00:1:00 but less than 4.00:1.00 | Revolving Facility
Financial covenants
Leverage ratio	4

REVOLVING FACILITY - Security I

REVOLVING FACILITY - Security Interest (Details) $ in Thousands	Feb. 03, 2018CAD ($)
Revolving Facility
Security interest
First lien security interest held as collateral	$ 37,500

LOAN FROM THE CONTROLLING SHA74

LOAN FROM THE CONTROLLING SHAREHOLDER (Details) - CAD ($)	Feb. 03, 2018	Jan. 28, 2017
Controlling Shareholder
Transactions
Borrowings	$ 0	$ 0

MANDATORILY REDEEMABLE PREFER75

MANDATORILY REDEEMABLE PREFERENCE SHARES - Summary (Details) $ in Thousands	12 Months Ended
	Jan. 30, 2016CAD ($)
Financial derivative liability
Accretion of preference shares	$ 401
Loss from embedded derivative on Series A, A-1 and A-2 preferred shares	$ 140,874

SHARE CAPITAL - Share informati

SHARE CAPITAL - Share information (Details) - shares	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Share Capital
Common shares authorized	Unlimited	Unlimited	Unlimited
Share Capital | Common shares
Number of shares in issuance
Balance, beginning of period (shares)	25,330,951	24,037,472
Issuance of common shares upon exercise of options (in shares)	456,773	1,236,154
Issuance of common shares upon vesting of restricted stock units (in shares)	97,648	57,325
Balance, end of period (shares)	25,885,372	25,330,951	24,037,472

SHARE CAPITAL - Issued and Outs

SHARE CAPITAL - Issued and Outstanding (Details) - CAD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2017	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Issued and outstanding
Issued and outstanding		$ 101,368	$ 133,450	$ 134,037
Issuance of common shares		1,782	2,779
Common shares issued on vesting of restricted stock units		(611)	(739)
Common shares
Issued and outstanding
Stock options exercised		1,782	2,779
Share Capital
Issued and outstanding
Issued and outstanding		111,692	263,828	$ 259,205
Reduction of stated capital	$ (155,947)	(155,947)
Issuance of common shares		2,669	4,175
Common shares issued on vesting of restricted stock units		1,142	448
Share Capital | Common shares
Issued and outstanding
Issued and outstanding		$ 111,692	$ 263,828
Number of shares issued		25,885,372	25,330,951
Number of shares outstanding		25,885,372	25,330,951	24,037,472
Issuance of common shares upon exercise of options (in shares)		456,773	1,236,154
Issuance of common shares upon vesting of restricted stock units (in shares)		97,648	57,325
Common shares issued on vesting of restricted stock units		$ 1,142	$ 448
Contributed Surplus
Issued and outstanding
Issued and outstanding		2,642	8,833	$ 7,094
Issuance of common shares		(887)	(1,396)
Common shares issued on vesting of restricted stock units		(1,984)	(922)
Deficit
Issued and outstanding
Issued and outstanding		(14,721)	(142,398)	$ (138,465)
Reduction of stated capital	$ 155,947	155,947
Common shares issued on vesting of restricted stock units		$ 231	$ (265)

SHARE CAPITAL - Stock-based com

SHARE CAPITAL - Stock-based compensation general information (Details)	12 Months Ended
	Feb. 03, 2018planshares
Stock-based compensation
Number of cash settlement alternatives | plan	0
Maximum number of shares available for issuance	1,440,000
Number of shares available for issuance	770,827
Stock options
Stock-based compensation
Contractual life of award (in years)	7 years
Stock options | Bottom of range
Stock-based compensation
Vesting life (in months)	36 months
Stock options | Top of range
Stock-based compensation
Vesting life (in months)	48 months
SARs
Stock-based compensation
Contractual life of award (in years)	7 years

SHARE CAPITAL - Weighted averag

SHARE CAPITAL - Weighted average fair value (Details)	12 Months Ended
	Feb. 03, 2018CAD ($)item	Jan. 28, 2017CAD ($)item
Weighted average share price and fair value assumptions, Black-Scholes option pricing model
Weighted average fair value of options granted (in dollars per share)	$ 2.39	$ 3.72
Risk-free interest rate (as a percent)	1.79%	1.23%
Expected volatility (as a percent)	27.40%	29.80%
Expected option life (in years) | item	4	4
Expected dividend yield (as a percent)	0.00%	0.00%
Exercise price (in dollars per share)	$ 9.76	$ 14.67

SHARE CAPITAL - Stock option pl

SHARE CAPITAL - Stock option plan status and changes (Details)	12 Months Ended
	Feb. 03, 2018CAD ($)item	Jan. 28, 2017CAD ($)item
Change in options outstanding
Outstanding, beginning of year (in shares) | item	933,195	2,146,880
Issued (in shares) | item	161,980	174,031
Exercised (in shares) | item	(456,773)	(1,236,154)
Forfeitures (in shares) | item	(190,623)	(151,562)
Outstanding, end of year (in shares) | item	447,779	933,195
Exercisable, end of year (in shares) | item	304,415	624,813
Changes in the weighted average exercise price
Outstanding, beginning of year (in dollars per share)	$ 5.63	$ 3.04
Issued (in dollars per share)	9.76	14.67
Exercised (in dollars per share)	3.90	2.25
Forfeitures (in dollars per share)	9.63	6.99
Weighted average exercise price of share options outstanding in share-based payment arrangement at end of period	7.18	5.63
Weighted average exercise price, exercisable (in dollars per share)	5.57	4.69
Weighted average share price at the date of exercise for options exercised during the period (in dollars per share)	$ 8.51	$ 14.24

SHARE CAPITAL - Stock option 81

SHARE CAPITAL - Stock option plan by range of exercise price (Details)	Feb. 03, 2018CAD ($)Yitem	Jan. 28, 2017CAD ($)Yitem	Jan. 30, 2016CAD ($)item
Range of exercise price
Number outstanding (in shares) | item	447,779	933,195	2,146,880
Weighted average contractual remaining life (in years) | Y	4.6	4.3
Weighted average exercise price, outstanding (in dollars per share)	$ 7.18	$ 5.63	$ 3.04
Number of options exercisable (in shares) | item	304,415	624,813
Weighted average exercise price, exercisable (in dollars per share)	$ 5.57	$ 4.69
$ 0.77
Range of exercise price
Exercise price (in dollars per share)	$ 0.77	$ 0.77
Number outstanding (in shares) | item	50,600	97,600
Weighted average contractual remaining life (in years) | Y	2.3	3.1
Weighted average exercise price, outstanding (in dollars per share)	$ 0.77	$ 0.77
Number of options exercisable (in shares) | item	50,600	39,600
Weighted average exercise price, exercisable (in dollars per share)	$ 0.77	$ 0.77
$3.33 - $4.31
Range of exercise price
Number outstanding (in shares) | item	172,396	671,804
Weighted average contractual remaining life (in years) | Y	3.7	4.4
Weighted average exercise price, outstanding (in dollars per share)	$ 3.91	$ 4.10
Number of options exercisable (in shares) | item	161,395	537,203
Weighted average exercise price, exercisable (in dollars per share)	$ 3.89	$ 4.08
$3.33 - $4.31 | Bottom of range
Range of exercise price
Exercise price (in dollars per share)	3.33	3.33
$3.33 - $4.31 | Top of range
Range of exercise price
Exercise price (in dollars per share)	$ 4.31	$ 4.31
$8.76 - $10.28
Range of exercise price
Number outstanding (in shares) | item	161,980
Weighted average contractual remaining life (in years) | Y	6.4
Weighted average exercise price, outstanding (in dollars per share)	$ 9.76
Number of options exercisable (in shares) | item	55,530
Weighted average exercise price, exercisable (in dollars per share)	$ 8.76
$8.76 - $10.28 | Bottom of range
Range of exercise price
Exercise price (in dollars per share)	8.76
$8.76 - $10.28 | Top of range
Range of exercise price
Exercise price (in dollars per share)	$ 10.28
$14.39 - $17.99
Range of exercise price
Number outstanding (in shares) | item	62,803	163,791
Weighted average contractual remaining life (in years) | Y	4.3	4.6
Weighted average exercise price, outstanding (in dollars per share)	$ 14.68	$ 14.78
Number of options exercisable (in shares) | item	36,890	48,010
Weighted average exercise price, exercisable (in dollars per share)	$ 14.72	$ 15
$14.39 - $17.99 | Bottom of range
Range of exercise price
Exercise price (in dollars per share)	14.39	14.39
$14.39 - $17.99 | Top of range
Range of exercise price
Exercise price (in dollars per share)	$ 17.99	$ 17.99

SHARE CAPITAL - RSUs (Details)

SHARE CAPITAL - RSUs (Details) - RSUs	12 Months Ended
	Feb. 03, 2018CAD ($)itemshares	Jan. 28, 2017CAD ($)itemshares
Change in RSUs outstanding
Outstanding, beginning of year (in shares) | item	252,233	252,720
Granted (in shares) | item	298,897	194,855
Forfeited (in shares) | item	(89,035)	(78,184)
Vested (in shares) | item	(97,648)	(57,325)
Vested, withheld for tax (in shares) | shares	(75,031)	(59,833)
Outstanding, end of year (in shares) | item	289,416	252,233
Change in the Weighted average fair value per unit
Outstanding, beginning of year (in dollars per share)	$ 12.42	$ 7.39
Granted (in dollars per share)	8.59	15.11
Forfeitures (in dollars per share)	10.03	9.68
Vested (in dollars per share)	11.85	7.82
Vested, withheld for tax (in dollars per share)	11.28	7.90
Outstanding, end of year (in dollars per share)	$ 9.70	$ 12.42

SHARE CAPITAL - Compensation Ex

SHARE CAPITAL - Compensation Expense (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
SHARE CAPITAL
Stock-based compensation expense	$ 2,021	$ 2,264	$ 1,749

FINANCE COSTS - Summary (Detail

FINANCE COSTS - Summary (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Finance costs
Interest on loan from the controlling shareholder [note 15]			$ 48
Interest and financing fees on term loan and Revolving Facility [note 14]	$ 79	$ 75	544
Interest on finance lease			19
Accrued dividends on preferred shares - Series A, A-1 and A-2 [note 16]			438
Other finance cost		1	2
Accretion on provisions	2,292
Finance costs	$ 2,371	$ 76	$ 1,051

INCOME TAXES - Statutory Tax Ra

INCOME TAXES - Statutory Tax Rate Reconciliation (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Statutory income tax rate reconciliation, percent
Income tax provision - statutory rate (as a percent)	26.80%	26.50%	26.50%
Non-deductible items (as a percent)	(1.60%)	(10.10%)
Loss from embedded derivative and accretion of Series A, A-1, and A-2 preferred shares (as a percent)			(28.70%)
Stock based compensation (as a percent)			(0.60%)
Effect of substantively enacted income tax rate changes (as a percent)	(7.90%)
Unrecognized deferred income tax asset (as a percent)	(16.70%)
Write-down of deferred income tax asset (as a percent)	(7.80%)
Other (as a percent)	(0.40%)	21.50%	(0.90%)
Income tax recovery - effective tax rate (as a percent)	(7.60%)	37.90%	(3.70%)
Statutory income tax rate reconciliation, amount
Income tax provision — statutory rate	$ (7,097)	$ (1,564)	$ (34,729)
Non-deductible items	437	598
Loss from embedded derivative and accretion of Series A, A-1, and A-2 preferred shares			37,506
Stock based compensation			769
Effect of substantively enacted income tax rate changes	2,090
Unrecognized deferred income tax asset	4,415
Write-down of deferred income tax asset	2,054
Other	111	(1,269)	1,122
Income tax recovery - effective tax rate	$ 2,010	$ (2,235)	$ 4,668

INCOME TAXES - Provision (Detai

INCOME TAXES - Provision (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Income tax provision (recovery)
Current	$ (1,575)	$ 2,145	$ 3,304
Deferred	3,585	(4,380)	1,364
Income tax recovery - effective tax rate	$ 2,010	$ (2,235)	$ 4,668

INCOME TAXES - Tax Cuts and Job

INCOME TAXES - Tax Cuts and Jobs Act (Details) - CAD ($) $ in Thousands	Jan. 01, 2018	Dec. 22, 2017	Sep. 27, 2017	Sep. 26, 2017	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Tax Cuts and Jobs Act ("U.S. Tax Reform")
Applicable tax rate					26.80%	26.50%	26.50%
Tax Cuts and Jobs Act (“U.S. Tax Reform”)
Tax Cuts and Jobs Act ("U.S. Tax Reform")
Applicable tax rate	21.00%	35.00%
Decrease in net deferred tax assets due to enactment of new foreign tax rates					$ 4,892
Bonus depreciation percentage rate			100.00%	50.00%

INCOME TAXES - Deferred Tax Ass

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - CAD ($) $ in Thousands	Feb. 03, 2018	Jan. 28, 2017
Deferred income tax assets
Total deferred income tax assets	$ 15,192	$ 16,976
Total deferred income tax liabilities	(9,998)	(2,601)
Net deferred income tax assets (liabilities)	5,194	14,375
U.S. operating losses carried forward
Deferred income tax assets
Total deferred income tax assets	1,259	2,439
Deferred rent
Deferred income tax assets
Total deferred income tax assets	1,662	1,885
Stock options
Deferred income tax assets
Total deferred income tax assets	3,401	5,647
Financing fees and IPO-related costs
Deferred income tax assets
Total deferred income tax assets	1,197	1,801
Lease inducements
Deferred income tax assets
Total deferred income tax assets	515	664
Provisions
Deferred income tax assets
Total deferred income tax assets	4,812	3,365
Others
Deferred income tax assets
Total deferred income tax assets	2,346	1,175
Carrying values of property and equipment in excess of tax basis
Deferred income tax assets
Total deferred income tax liabilities	(158)	(2,171)
Unrealized foreign exchange gain on derivative financial instruments
Deferred income tax assets
Total deferred income tax assets	62
Total deferred income tax liabilities		(121)
Unrecognized deferred income tax asset
Deferred income tax assets
Total deferred income tax liabilities	(9,789)
Unrealized foreign exchange gain related to intercompany advances
Deferred income tax assets
Total deferred income tax liabilities	$ (113)	$ (309)

INCOME TAXES - Accumulated loss

INCOME TAXES - Accumulated losses (Details) $ in Thousands, $ in Millions	Feb. 03, 2018CAD ($)	Feb. 03, 2018USD ($)	Jan. 28, 2017CAD ($)	Jan. 28, 2017USD ($)	Jan. 30, 2016USD ($)
Accumulated operating losses
Deferred tax assets	$ 15,192		$ 16,976
U.S. | Accumulated losses
Accumulated operating losses
Deferred tax assets		$ 14.2		$ 14.9	$ 9.7

INCOME TAXES - Net deferred tax

INCOME TAXES - Net deferred tax assets, roll forward (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Changes in the net deferred income tax asset
Balance net, beginning of year	$ 14,375	$ 7,877
Deferred income tax assets net, end of year	5,194	14,375
Deferred rent
Changes in the net deferred income tax asset
Changes in the net deferred income tax asset	(222)	385
U.S. operating losses carried forward
Changes in the net deferred income tax asset
Changes in the net deferred income tax asset	(1,180)	(1,340)
Carrying values of property and equipment in excess of tax basis
Changes in the net deferred income tax asset
Changes in the net deferred income tax asset	2,013	554
Stock options
Changes in the net deferred income tax asset
Changes in the net deferred income tax asset	(2,245)	1,493
Financing fees and IPO-related costs
Changes in the net deferred income tax asset
Changes in the net deferred income tax asset	(604)	(664)
Unrealized foreign exchange gain on derivative financial instruments
Changes in the net deferred income tax asset
Changes in the net deferred income tax asset	183	793
Unrealized foreign exchange gain related to intercompany advances
Changes in the net deferred income tax asset
Changes in the net deferred income tax asset	196	668
Lease inducements
Changes in the net deferred income tax asset
Changes in the net deferred income tax asset	(149)	437
Unrecognized deferred income tax asset
Changes in the net deferred income tax asset
Changes in the net deferred income tax asset	(9,789)
Provisions
Changes in the net deferred income tax asset
Changes in the net deferred income tax asset	1,447	3,090
Others
Changes in the net deferred income tax asset
Changes in the net deferred income tax asset	$ 1,169	$ 1,082

SELLING, GENERAL AND ADMINIST91

SELLING, GENERAL AND ADMINISTRATION EXPENSES - Summary (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
SELLING, GENERAL AND ADMINISTRATION EXPENSES
Wages, salaries and employee benefits	$ 65,888	$ 61,143	$ 50,671
Depreciation of property and equipment	8,431	8,069	5,832
Amortization of intangible assets	1,474	758	613
Loss on disposal of property and equipment	82	356	297
Impairment of property and equipment	15,069	7,516
Provision (recovery) for onerous contracts	10,321	8,140	(265)
Stock-based compensation	2,021	2,264	1,749
Executive and employee separation costs related to salary	2,033	835
Other selling, general and administration	26,611	25,675	21,219
Selling, general and administrative expense	$ 131,930	$ 114,756	$ 80,116

EARNINGS PER SHARE - Reconcilia

EARNINGS PER SHARE - Reconciliation (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
EARNINGS PER SHARE
Net income (loss) for basic EPS	$ (28,501)	$ (3,688)	$ (131,431)
Weighted average number of shares outstanding
Weighted average number of ordinary shares outstanding	25,716,186	24,699,290	19,776,946

RELATED PARTY DISCLOSURES - Oth

RELATED PARTY DISCLOSURES - Other than key personnel (Details) - CAD ($) $ in Thousands	Jun. 11, 2015	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Transactions
Interest on loan from related party				$ 48
Accrued dividends on preferred shares - Series A, A-1 and A-2				438
Executive employees
Transactions
Merchandise purchased from related party		$ 87	$ 0	0
Controlling Shareholder
Transactions
Interest on loan from related party				48
Interest paid to related party	$ 48
Accrued dividends on preferred shares - Series A, A-1 and A-2				$ 438

RELATED PARTY DISCLOSURES - Tra

RELATED PARTY DISCLOSURES - Transactions with key management personnel (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Transactions
Wages, salaries, and bonus	$ 3,255	$ 2,741	$ 3,600
Termination benefits	1,485	719
Stock-based compensation	1,035	1,377	1,177
Total compensation earned by key management personnel	$ 5,775	$ 4,837	$ 4,777

SEGMENT INFORMATION - Product r

SEGMENT INFORMATION - Product revenue (Details) $ in Thousands	12 Months Ended
	Feb. 03, 2018CAD ($)segment	Jan. 28, 2017CAD ($)segment	Jan. 30, 2016CAD ($)segment
Segment information
Number of reportable segments | segment	2	2	2
Revenue	$ 224,015	$ 215,984	$ 180,690
Tea
Segment information
Revenue	156,125	143,280	120,022
Tea accessories
Segment information
Revenue	49,470	53,807	43,191
Food and beverages
Segment information
Revenue	$ 18,420	$ 18,897	$ 17,477

SEGMENT INFORMATION - Property

SEGMENT INFORMATION - Property and equipment and intangible assets (Details) - CAD ($) $ in Thousands	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Segment information
Property and equipment and intangible assets	$ 40,997	$ 54,118	$ 49,572
Canada
Segment information
Property and equipment and intangible assets	37,234	41,432	35,915
US
Segment information
Property and equipment and intangible assets	$ 3,763	$ 12,686	$ 13,657

SEGMENT INFORMATION - Gross pro

SEGMENT INFORMATION - Gross profit per country (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Segment information
Sales	$ 224,015	$ 215,984	$ 180,690
Cost of sales	116,772	107,534	85,359
Gross profit	107,243	108,450	95,331
Selling, general and administrative expenses	131,930	114,756	80,116
Impairment of property and equipment	15,069	7,516
Provision (recovery) for onerous contracts	7,854	8,140	(265)
Results from operating activities	(24,687)	(6,306)	15,215
Finance costs	2,371	76	1,051
Finance income	(567)	(479)	(348)
Accretion of preferred shares			401
Loss from embedded derivative on Series A, A-1 and A-2 preferred shares			140,874
Loss before income taxes	(26,491)	(5,903)	(126,763)
Operating segments
Segment information
Selling, general and administrative expenses	73,186	66,050	52,579
Results from operating activities	11,134	26,744	43,017
Non-allocated
Segment information
Selling, general and administrative expenses	35,821	33,050	27,802
Canada | Operating segments
Segment information
Sales	185,287	180,380	156,186
Cost of sales	93,383	86,473	71,657
Gross profit	91,904	93,907	84,529
Selling, general and administrative expenses	54,884	49,466	41,174
Impairment of property and equipment	5,114	1,116
Provision (recovery) for onerous contracts	1,752	427
Results from operating activities	30,154	42,898	43,355
US | Operating segments
Segment information
Sales	38,728	35,604	24,504
Cost of sales	23,389	21,061	13,702
Gross profit	15,339	14,543	10,802
Selling, general and administrative expenses	18,302	16,584	11,405
Impairment of property and equipment	9,955	6,400
Provision (recovery) for onerous contracts	6,102	7,713	(265)
Results from operating activities	$ (19,020)	$ (16,154)	$ (338)

FINANCIAL RISK MANAGEMENT - Cur

FINANCIAL RISK MANAGEMENT - Currency risk (Details) - Currency risk $ in Thousands, $ in Thousands	Feb. 03, 2018CAD ($)	Feb. 03, 2018USD ($)	Jan. 28, 2017USD ($)
Currency risk - foreign exchange risk
Sensitivity analysis, percent of increase	5.00%	5.00%
Sensitivity analysis, percent of decrease	5.00%	5.00%
Effect on net income (loss) of 5% fall in the Canadian dollar	$ 201
Effect on net income (loss) of 5% rise in the Canadian dollar	$ 201
Cash
Currency risk - foreign exchange risk
Foreign exchange exposure		$ 5,686	$ 690
Accounts receivable
Currency risk - foreign exchange risk
Foreign exchange exposure		882	1,188
Accounts payable
Currency risk - foreign exchange risk
Foreign exchange exposure		$ 2,555	$ 2,461

FINANCIAL RISK MANAGEMENT - For

FINANCIAL RISK MANAGEMENT - Foreign exchange contracts (Details) - Foreign exchange purchase contracts, U.S. dollar - Currency risk item in Thousands, $ in Thousands	12 Months Ended
	Feb. 03, 2018CAD ($)item$ / $	Jan. 28, 2017CAD ($)item$ / $
Bottom of range
Forward contracts
Hedged percentage of expected U.S. dollar inventory purchasing requirements	80.00%
Top of range
Forward contracts
Hedged percentage of expected U.S. dollar inventory purchasing requirements	90.00%
Cash flow hedges
Forward contracts
Unrealized gain | $	$ (229)	$ 454
Cash flow hedges | Bottom of range
Forward contracts
Contractual exchange rate (in USD to CAD) | $ / $	1.2221	1.2696
Cash flow hedges | Top of range
Forward contracts
Contractual exchange rate (in USD to CAD) | $ / $	1.3050	1.3098
US$ | Cash flow hedges
Forward contracts
Nominal value | item	24,100	32,700
C$ | Cash flow hedges
Forward contracts
Nominal value | item	30,033	42,404

FINANCIAL RISK MANAGEMENT - Mar

FINANCIAL RISK MANAGEMENT - Market risk (Details) - Revolving Facility - CAD ($) $ in Thousands	Feb. 03, 2018	Jan. 28, 2017
Market risk - interest rate risk
Borrowings	$ 0	$ 0
Interest rate risk
Market risk - interest rate risk
Borrowings	$ 0

FINANCIAL RISK MANAGEMENT - Liq

FINANCIAL RISK MANAGEMENT - Liquidity risk (Details) - CAD ($)	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016	Jan. 31, 2015
Additional information about resources available for managing liquidity risks
Cash	$ 63,484,000	$ 64,440,000	$ 72,514,000	$ 19,784,000
Top of range
Additional information about resources available for managing liquidity risks
Discharge period expected for trade and other payables	90 days
Revolving Facility
Additional information about resources available for managing liquidity risks
Revolving Facility, amount available for draw	$ 20,000,000
Amount drawn	$ 0	$ 0
Term of facility	3 years
Accordion feature, additional borrowing capacity	$ 10,000,000
Revolving Facility | Top of range
Additional information about resources available for managing liquidity risks
Accordion feature, additional borrowing capacity	$ 10,000,000

FINANCIAL RISK MANAGEMENT - Fin

FINANCIAL RISK MANAGEMENT - Financial obligations - maturities (Details) - CAD ($) $ in Thousands	Feb. 03, 2018	Jan. 28, 2017
Summary of obligations and the related effect on liquidity and cash flows
Trade and other payables	$ 14,392	$ 19,681
Operating lease obligations	134,965	148,436
Purchase obligations	8,820	5,842
Total	158,177	173,959
Within one year
Summary of obligations and the related effect on liquidity and cash flows
Trade and other payables	14,392	19,681
Operating lease obligations	19,840	19,306
Purchase obligations	8,820	5,842
Total	43,052	44,829
After one year but not more than five years
Summary of obligations and the related effect on liquidity and cash flows
Operating lease obligations	86,844	90,891
Total	86,844	90,891
More than five years
Summary of obligations and the related effect on liquidity and cash flows
Operating lease obligations	28,281	38,239
Total	$ 28,281	$ 38,239

FINANCIAL RISK MANAGEMENT - Fai

FINANCIAL RISK MANAGEMENT - Fair value - Financial assets carrying and fair value (Details) - Foreign exchange purchase contracts, U.S. dollar - CAD ($) $ in Thousands	Feb. 03, 2018	Jan. 28, 2017
Financial assets
Financial assets	$ 239	$ 463
Level 2
Financial assets
Financial assets, at fair value	$ 239	$ 463

FINANCIAL RISK MANAGEMENT - 104

FINANCIAL RISK MANAGEMENT - Fair value - Financial liabilities carrying and fair value (Details) - Foreign exchange purchase contracts, U.S. dollar - CAD ($) $ in Thousands	Feb. 03, 2018	Jan. 28, 2017
Financial liabilities
Financial liabilities	$ 468	$ 9
Level 3
Financial liabilities
Financial liabilities, at fair value	$ 468	$ 9

MANAGEMENT OF CAPITAL - Summary

MANAGEMENT OF CAPITAL - Summary (Details) - CAD ($) $ in Thousands	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016	Jan. 31, 2015
Management of capital
Total capital under management	$ 99,613	$ 130,263
Cash balances available for funding requirements	63,484	64,440	$ 72,514	$ 19,784
Total debt
Management of capital
Total capital under management	0	0
Shareholder's equity [excluding accumulated other comprehensive income]
Management of capital
Total capital under management	$ 99,613	$ 130,263