Document and Entity DEI Informa
Document and Entity DEI Information - shares | 9 Months Ended | |
Nov. 03, 2018 | Dec. 10, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | DAVIDsTEA Inc. | |
Entity Central Index Key | 1,627,606 | |
Document Type | 10-Q | |
Document Period End Date | Nov. 3, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-02 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,007,757 | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true |
INTERIM CONSOLIDATED BALANCE SH
INTERIM CONSOLIDATED BALANCE SHEETS - CAD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 |
Current | ||
Cash | $ 18,714 | $ 63,484 |
Accounts and other receivables | 4,007 | 3,131 |
Inventories | 44,408 | 24,450 |
Income tax receivable | 4,808 | 2,968 |
Prepaid expenses and deposits | 9,476 | 7,712 |
Total current assets | 81,413 | 101,745 |
Property and equipment | 31,698 | 36,558 |
Intangible assets | 7,392 | 4,439 |
Deferred income tax assets | 8,962 | 5,194 |
Total assets | 129,465 | 147,936 |
Current | ||
Trade and other payables | 16,096 | 14,392 |
Deferred revenue | 4,966 | 5,186 |
Current portion of provisions | 4,658 | 4,693 |
Derivative financial instruments | 229 | |
Total current liabilities | 25,720 | 24,500 |
Deferred rent and lease inducements | 8,829 | 8,608 |
Provisions | 14,434 | 13,460 |
Total liabilities | 48,983 | 46,568 |
Equity | ||
Share capital | 112,499 | 111,692 |
Contributed surplus | 1,230 | 2,642 |
Deficit | (34,696) | (14,721) |
Accumulated other comprehensive income | 1,449 | 1,755 |
Total equity | 80,482 | 101,368 |
Total liabilities and equity | $ 129,465 | $ 147,936 |
INTERIM CONSOLIDATED STATEMENTS
INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS | ||||
Sales | $ 43,656 | $ 42,997 | $ 129,609 | $ 137,353 |
Cost of sales | 25,275 | 24,625 | 71,193 | 74,594 |
Gross profit | 18,381 | 18,372 | 58,416 | 62,759 |
Selling, general and administrative expenses | 29,119 | 27,035 | 84,865 | 79,004 |
Results from operating activities | (10,738) | (8,663) | (26,449) | (16,245) |
Finance costs | 80 | 327 | 237 | 615 |
Finance income | (122) | (149) | (574) | (420) |
Loss before income taxes | (10,696) | (8,841) | (26,112) | (16,440) |
Recovery of income tax | (1,635) | (2,356) | (5,851) | (4,030) |
Net loss | (9,061) | (6,485) | (20,261) | (12,410) |
Items to be reclassified subsequently to income (loss): | ||||
Cumulative translation adjustment | (62) | 1,872 | (473) | 95 |
Items that may be reclassified subsequently to income (loss): | ||||
Unrealized net gain on forward exchange contracts | 824 | 794 | 79 | |
Realized net (gain) on forward exchange contracts reclassified to inventory | (425) | (714) | (565) | (46) |
Provision for income tax (recovery) on forward exchange contracts | 113 | 589 | (62) | (303) |
Other comprehensive income (loss), net of tax | (374) | 2,571 | (306) | (175) |
Total comprehensive income (loss) | $ (9,435) | $ (3,914) | $ (20,567) | $ (12,585) |
Net loss per share: | ||||
Basic (in CAD per share) | $ (0.35) | $ (0.25) | $ (0.78) | $ (0.48) |
Fully diluted (in CAD per share) | $ (0.35) | $ (0.25) | $ (0.78) | $ (0.48) |
Weighted average number of shares outstanding | ||||
Weighted average number of shares outstanding - basic | 25,992,339 | 25,829,090 | 25,862,086 | 25,659,164 |
Weighted average number of shares outstanding - fully diluted | 25,992,339 | 25,829,090 | 25,862,086 | 25,659,164 |
INTERIM CONSOLIDATED STATEMEN_2
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
OPERATING ACTIVITIES | ||||
Net loss | $ (9,061) | $ (6,485) | $ (20,261) | $ (12,410) |
Items not affecting cash: | ||||
Depreciation of property and equipment | 1,785 | 2,138 | 5,193 | 6,316 |
Amortization of intangible assets | 377 | 494 | 905 | 1,248 |
Loss on disposal of property and equipment | 18 | 14 | 48 | |
Impairment of property and equipment | 725 | 2,658 | 3,285 | 4,971 |
Deferred rent | 74 | 174 | (17) | 377 |
Provision (recovery) for onerous contracts | 3,414 | (46) | 5,306 | (1,573) |
Stock-based compensation expense | 91 | 362 | (7) | 1,738 |
Amortization of financing fees | 21 | 19 | 61 | 59 |
Accretion on provisions | 60 | 307 | 177 | 558 |
Deferred income taxes (recovery) | (2,575) | (227) | (3,921) | 203 |
Cash flows related to operating activities before net change in working capital | (5,089) | (588) | (9,265) | 1,535 |
Net change in other non-cash working capital balances related to operations | (12,948) | (15,546) | (28,316) | (21,511) |
Cash flows related to operating activities | (18,037) | (16,134) | (37,581) | (19,976) |
FINANCING ACTIVITIES | ||||
Proceeds from issuance of common shares pursuant to exercise of stock options | 8 | 90 | 82 | 1,696 |
Cash flows related to financing activities | 8 | 90 | 82 | 1,696 |
INVESTING ACTIVITIES | ||||
Additions to property and equipment | (1,752) | (2,770) | (3,420) | (7,501) |
Additions to intangible assets | (1,128) | (728) | (3,851) | (1,794) |
Cash flows related to investing activities | (2,880) | (3,498) | (7,271) | (9,295) |
Decrease in cash during the period | (20,909) | (19,542) | (44,770) | (27,575) |
Cash, beginning of period | 39,623 | 56,407 | 63,484 | 64,440 |
Cash, end of period | 18,714 | 36,865 | 18,714 | 36,865 |
Cash paid for: | ||||
Income taxes (classified as operating activity) | 7 | 165 | 9 | 877 |
Cash received for: | ||||
Interest | $ 120 | $ 146 | $ 563 | 433 |
Income taxes (classified as operating activity) | $ 26 |
INTERIM CONSOLIDATED STATEMEN_3
INTERIM CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) - 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. 28, 2017 | $ 263,828 | $ 8,833 | $ (142,398) | $ 3,187 | $ 333 | $ 2,854 | $ 133,450 |
Change in equity | |||||||
Net loss for the period | (12,410) | (12,410) | |||||
Other comprehensive income (loss) | (175) | 128 | (303) | (175) | |||
Total comprehensive income (loss) | (12,410) | (175) | 128 | (303) | (12,585) | ||
Issuance of common shares | 2,546 | (850) | 1,696 | ||||
Common shares issued on vesting of restricted stock units | 912 | (1,652) | 184 | (556) | |||
Stock-based compensation expense | 1,738 | 1,738 | |||||
Income tax impact associated with stock options | (133) | (133) | |||||
Reduction of stated capital | (155,947) | 155,947 | |||||
Balance, end of period at Oct. 28, 2017 | 111,339 | 7,936 | 1,323 | 3,012 | 461 | 2,551 | 123,610 |
Balance, beginning of period at Feb. 03, 2018 | 111,692 | 2,642 | (14,721) | 1,755 | (167) | 1,922 | 101,368 |
Change in equity | |||||||
Net loss for the period | (20,261) | (20,261) | |||||
Other comprehensive income (loss) | (306) | 167 | (473) | (306) | |||
Total comprehensive income (loss) | (20,261) | (306) | $ 167 | (473) | (20,567) | ||
Issuance of common shares | 164 | (82) | 82 | ||||
Common shares issued on vesting of restricted stock units | 643 | (1,322) | 286 | (393) | |||
Stock-based compensation expense | (7) | (7) | |||||
Income tax impact associated with stock options | (1) | (1) | |||||
Balance, end of period at Nov. 03, 2018 | $ 112,499 | $ 1,230 | $ (34,696) | $ 1,449 | $ 1,449 | $ 80,482 |
CORPORATE INFORMATION
CORPORATE INFORMATION | 9 Months Ended |
Nov. 03, 2018 | |
CORPORATE INFORMATION | |
CORPORATE INFORMATION | 1. CORPORATE INFORMATION The unaudited condensed interim consolidated financial statements of DAVIDsTEA Inc. and its subsidiary (collectively, the “Company”) for the three and nine-month periods ended November 3, 2018 were authorized for issue in accordance with a resolution of the Board of Directors on December 13, 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 St., Town of Mount-Royal, Québec, Canada, H4P 1M2. The Company is engaged in the retail and online sale of tea, tea accessories and food and beverages in Canada and the United States. The results of operations for the interim period are not necessarily indicative of the results of operations for the full year. 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. |
STATEMENT OF COMPLIANCE AND BAS
STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION | 9 Months Ended |
Nov. 03, 2018 | |
STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION | |
STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION | 2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION These unaudited condensed interim consolidated financial statements have been prepared in accordance with IAS 34, “Interim Financial Reporting” as issued by the International Accounting Standards Board (“IASB”). Accordingly, these financial statements do not include all of the financial statement disclosures required for annual financial statements and should be read in conjunction with the Company’s audited consolidated financial statements for the year ended February 3, 2018, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the IASB. In management’s opinion, the unaudited condensed interim consolidated financial statements reflect all the adjustments that are necessary for a fair presentation of the results for the interim period presented. These unaudited condensed interim consolidated financial statements have been prepared using the accounting policies and methods of computation as outlined in note 3 of the consolidated financial statements for the year ended February 3, 2018 on Form 10-K filed with the SEC on April 19, 2018. |
CHANGES IN ACCOUNTING POLICIES
CHANGES IN ACCOUNTING POLICIES | 9 Months Ended |
Nov. 03, 2018 | |
CHANGES IN ACCOUNTING POLICIES | |
CHANGES IN ACCOUNTING POLICIES | 3. CHANGES IN ACCOUNTING POLICIES As of February 4, 2018, the Company adopted IFRS 9, “Financial Instruments” (“IFRS 9”). IFRS 9 replaces IAS 39 Financial Instruments: Recognition and Measurement for annual periods beginning on or after January 1, 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting. With the exception of hedge accounting, which the Company applied prospectively, the Company has applied IFRS 9 retrospectively, with the initial application date of February 4, 2018. Overall, there was no material impact on the Company’s consolidated financial statements. a) Classification and measurement . The Company did not identify any material impact on its consolidated financial statements in applying the classification and measurement requirements of IFRS 9. The following table presents the carrying amount of financial assets held by the Company at February 3, 2018 and their measurement category under IAS 39 and the new model under IFRS 9. February 3, 2018 February 3, 2018 IAS 39 IFRS 9 Measurement Carrying Measurement Carrying category Value category Value $ $ Cash FVTPL 63,484 FVTPL 63,484 Credit card cash clearing receivables Amortized cost 1,291 Amortized cost 1,291 Other receivables Amortized cost 1,840 Amortized cost 1,840 Derivative financial instruments FVTPL 229 FVTPL 229 There has been no impact caused by the new classification of financial assets under IFRS 9. The classification of all financial liabilities as financial liabilities at amortized cost remains unchanged as well as their measurement resulting from their classification. 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 applied the simplified approach and records lifetime expected losses on all trade receivables. The Company performed a detailed analysis that considered all reasonable and supportable information, including forward-looking elements to determine the extent of the impact. The Company’s IFRS 9 expected credit loss model did not 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 did not have a material impact on the Company’s hedge accounting. As of February 4, 2018, the Company adopted IFRS 15, “Revenue from Contracts with Customers” (“IFRS 15”). 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 is effective for annual periods beginning on or after January 1, 2018. The implementation of IFRS 15 impacts the allocation of revenue that is deferred in relation to the Company’s customer loyalty award programs. Prior to adoption, revenue was allocated to the customer loyalty awards using the residual fair value method. Under IFRS 15, consideration is allocated between the loyalty program awards and the goods on which the awards were earned, based on their relative stand-alone selling prices. The change in allocation of revenue that is deferred in relation to the Company’s customer loyalty program does not have a material impact on retained earnings as at February 4, 2018. Overall, there was not a material impact on the Company’s consolidated financial statements. As of February 4, 2018, the Company adopted International Financial Reporting Interpretations (“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. There was no material impact on the Company’s consolidated financial statements. Information on significant new accounting standards and amendments issued but not yet adopted is described below. 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 with early application permitted. 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 estimated quantitative financial effects, before the adoption of IFRS 16. IFRIC 23, “Uncertainty over Income Tax Treatments”, was issued by the IASB in June 2017. IFRIC 23 provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. IFRIC 23 is effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted. IFRIC 23 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 | 9 Months Ended |
Nov. 03, 2018 | |
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS | |
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS | 4. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS The preparation of condensed interim consolidated financial statements requires management to make estimates and assumptions using judgments that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense during the reporting period. Estimates and other judgments are continually evaluated and are based on management’s experience and other factors, including expectations about future events that are believed to be reasonable under the circumstances. Actual results may differ from those estimates. In preparing these unaudited condensed interim consolidated financial statements, critical judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those referred to in note 5 of the consolidated financial statements for the year ended February 3, 2018 on Form 10-K filed with the SEC on April 19, 2018. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Nov. 03, 2018 | |
INVENTORIES | |
INVENTORIES | 5. INVENTORIES November 3, February 3, 2018 2018 $ $ Finished goods 36,510 17,600 Goods in transit 2,784 4,608 Packaging 5,114 2,242 44,408 24,450 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Nov. 03, 2018 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | 6. PROPERTY AND EQUIPMENT For the three and nine months ended November 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 cash generating units (“CGUs”) with an indication of impairment. CGUs reviewed included stores performing below the Company’s expectations. As a result, for the three and nine months ended November 3, 2018, an impairment loss of $725 and $3,285, respectively, [October 28, 2017 — $2,658 and $4,971] related to store leasehold improvements, furniture and equipment, and computer hardware was recorded in the Canada and U.S. segments for $725 and nil, respectively, for the three months ended November 3, 2018 and $3,096 and $189, respectively, for the nine months ended November 3, 2018, respectively [October 28, 2017 — $595 and $2,063, respectively, for the three months and $595 and $5,242, respectively, for the nine months]. 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 nil [October 28, 2017 —$635] 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% [October 28, 2017 — 13.4%]. A reversal of impairment occurs when previously impaired CGUs see improved financial results. For the three and nine months ended November 3, 2018, no impairment losses were reversed [October 28, 2017 — $866 reversed in the U.S. segment, with value in use of $848]. Impairment losses are 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. |
PROVISIONS
PROVISIONS | 9 Months Ended |
Nov. 03, 2018 | |
PROVISIONS | |
PROVISIONS | 7. PROVISIONS For the nine months ended November 3, 2018 $ Opening balance 18,153 Additions 5,894 Reversals (588) Utilization (4,820) Settlements (615) Accretion expense 177 Cumulative translation adjustment 891 Ending balance 19,092 Less: Current portion (4,658) Long-term portion of provisions 14,434 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. During the three and nine months ended November 3, 2018, due to changes to assumptions, additions to the onerous provision were recorded in the amount of $3,743 and $5,894, respectively, [October 28, 2017 — nil and $458], while the provisions for other stores were partially or fully reversed by an amount of $329 and $588, respectively, [October 28, 2017 — $46 and $2,031]. |
REVOLVING FACILITY
REVOLVING FACILITY | 9 Months Ended |
Nov. 03, 2018 | |
REVOLVING FACILITY | |
REVOLVING FACILITY | 8. REVOLVING FACILITY On June 11, 2018, the Company amended its existing Credit Agreement (the “Amended Credit Agreement”). The Amended Credit Agreement provides for a two-year revolving facility (“Amended Revolving Facility”) in the principal amount of $15.0 million or the equivalent in U.S. dollars, repayable at any time, two years from June 11, 2018, with no accordion feature. Borrowings under the Amended Revolving Facility may not exceed the lesser of the total commitment for the revolving facility and the borrowing base, calculated as 75% of the face value of all eligible receivables plus 50% of the estimated value of all eligible inventory, less any priority payables. The Amended Credit Agreement subjects the Company to certain financial covenants entered into between the Company and the lender. Without the prior written consent of the lender, the Company’s fixed charge coverage ratio may not be less than 1.10:1.00 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 $65,000 and the Company’s minimum excess availability must not be less than $15.0 million. The Amended Revolving Facility bears interest based on the Company’s adjusted leverage ratio, at the bank’s prime rate, U.S. bank rate and LIBOR plus a range from 0.5% to 2.5% per annum. A standby fee range of 0.3% to 0.5% will be paid on the daily principal amount of the unused portion of the Amended Revolving Facility. The credit facility also contains non-financial 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 November 3, 2018 and February 3, 2018, the Company did not have any borrowings under the Amended Revolving Facility. At November 3, 2018, the Company is in breach of its fixed charge coverage ratio and is taking measures to rectify the situation. The Company is in compliance with its other financial and non-financial covenants. |
SHARE CAPITAL
SHARE CAPITAL | 9 Months Ended |
Nov. 03, 2018 | |
SHARE CAPITAL | |
SHARE CAPITAL | 9. SHARE CAPITAL Authorized An unlimited number of common shares. Issued and outstanding November 3, February 3, 2018 2018 $ $ 26,007,009 common shares [February 3, 2018 - 25,885,372 shares] 112,499 111,692 112,499 111,692 During the three and nine-month periods ended November 3, 2018, 10,000 and 88,135 stock options, respectively, were exercised for 88,135 common shares for cash proceeds of $8 and $82, respectively, and 36,418 common shares for a non-cash settlement of nil and $121, respectively [October 28, 2017 — 24,000 and 436,773 stock options, respectively, for cash proceeds of $90 and $1,696, respectively]. During the three and nine-month periods ended November 3, 2018, the carrying value of common shares includes $3 and $82, respectively [October 28, 2017 — $22 and $850, respectively], which corresponds to a reduction in contributed surplus associated with options exercised during the period. In addition, during the three and nine-month periods ended November 3, 2018, 1,128 and 70,668 common shares, respectively [October 28, 2017 – 19,819 and 75,820 common shares, respectively] were issued in relation to the vesting of restricted stock units (“RSU”), resulting in an increase in share capital of $7 and $643, net of tax, respectively [October 28, 2017 – $208 and $912, respectively] and a reduction in contributed surplus of $18 and $1,322, respectively [October 28, 2017 — $433 and $1,652, respectively]. During the nine-month period ended October 28, 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. Stock-based compensation As at November 3, 2018, 842,905 common shares remain available for issuance under the 2015 Omnibus Incentive Plan. No stock options were granted during the nine-month period ended November 3, 2018. For the nine-month period ended October 28, 2017, the weighted average fair value of options granted of $2.39 was estimated using the Black Scholes option pricing model, using the following assumptions: October 28, 2017 Risk-free interest rate % Expected volatility % Expected option life 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 nine-month period is presented below. For the nine months ended November 3, October 28, 2018 2017 Weighted Weighted average average Options exercise Options exercise outstanding price outstanding price # $ # $ Outstanding, beginning of period 447,779 7.18 933,195 5.63 Issued — — 161,980 9.76 Exercised (88,135) 2.76 (436,773) 3.88 Forfeitures (220,791) 8.92 (135,135) 8.31 Outstanding, end of period 138,853 7.23 523,267 7.67 Exercisable, end of period 75,837 4.84 315,909 5.74 For the nine-month period ended November 3, 2018, the weighted average share price at the date of exercise for stock options exercised was $4.47 [October 28, 2017 — $8.68]. A summary of the status of the Company’s RSU plan and changes during the nine-month period is presented below. For the nine months ended November 3, October 28, 2018 2017 Weighted Weighted average average RSUs fair value RSUs fair value outstanding per unit (1) outstanding per unit (1) # $ # $ Outstanding, beginning of period 289,416 9.70 252,233 12.42 Granted 476,450 4.48 298,897 8.59 Forfeitures (327,479) 6.45 (34,864) 10.19 Vested (70,668) 9.08 (75,820) 12.21 Vested, withheld for tax (69,017) 8.91 (65,342) 11.40 Outstanding, end of period 298,702 5.26 375,104 9.80 (1) Weighted average fair value per unit as at date of grant. During the three and nine-month periods ended November 3, 2018, the Company recognized stock-based compensation expense and a net reversal of stock-based compensation of $91 and $7, respectively [October 28, 2017 — stock-based compensation expense of $362 and $1,738, respectively]. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Nov. 03, 2018 | |
INCOME TAXES | |
INCOME TAXES | 10. INCOME TAXES Income tax expense is recognized based on management’s best estimate of the weighted average annual income tax rate expected for the full fiscal year. A reconciliation of the statutory income tax rate to the effective tax rate is as follows: For the three months ended For the nine months ended November 3, October 28, November 3, October 28, 2018 2017 2018 2017 % $ % $ % $ % $ Income tax recovery — statutory rate 26.9 (2,873) 26.8 (2,368) 26.9 (7,015) 26.8 (4,404) Increase (decrease) in provision for income tax (recovery) resulting from: Non-deductible items (0.4) 38 (0.4) 38 0.1 (31) (2.3) 385 Provision for uncertain tax position (8.8) 940 — — (3.6) 940 — — Other (2.4) 260 0.3 (26) (1.0) 255 0.1 (11) Income tax provision (recovery) — effective tax rate 15.3 (1,635) 26.7 (2,356) 22.4 (5,851) 24.6 (4,030) A breakdown of the income tax provision (recovery) on the interim consolidated statement of loss is as follows: For the three months ended For the nine months ended November 3, October 28, November 3, October 28, 2018 2017 2018 2017 $ $ $ $ Income tax provision (recovery) Current 940 (2,129) (1,930) (4,233) Deferred (2,575) (227) (3,921) 203 (1,635) (2,356) (5,851) (4,030) |
SELLING, GENERAL AND ADMINISTRA
SELLING, GENERAL AND ADMINISTRATION EXPENSES | 9 Months Ended |
Nov. 03, 2018 | |
SELLING, GENERAL AND ADMINISTRATION EXPENSES | |
SELLING, GENERAL AND ADMINISTRATION EXPENSES | 11. SELLING, GENERAL AND ADMINISTRATION EXPENSES For the three months ended For the nine months ended November 3, October 28, November 3, October 28, 2018 2017 2018 2017 $ $ $ $ Wages, salaries and employee benefits 16,767 15,012 49,031 47,113 Depreciation of property and equipment 1,785 2,138 5,193 6,316 Amortization of intangible assets 377 494 905 1,248 Loss on disposal of property and equipment — 18 14 48 Impairment of property and equipment 725 2,658 3,285 4,971 Provision (recovery) for onerous contracts 3,414 (46) 5,306 (1,573) Utilization for onerous contracts (2,126) (1,092) (4,820) (2,340) Stock-based compensation 91 362 (7) 1,738 Executive separation costs related to salary 123 1,070 840 1,882 Strategic review and proxy contest costs 27 — 3,538 — Other selling, general and administration 7,936 6,421 21,580 19,601 29,119 27,035 84,865 79,004 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Nov. 03, 2018 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 12. EARNINGS PER SHARE Basic earnings per share (“EPS”) amounts are calculated by dividing the net income (loss) for the period attributable to ordinary equity holders by the weighted average number of ordinary shares outstanding during the period. Diluted EPS amounts are calculated by dividing the net income (loss) attributable to ordinary equity holders (after adjusting for dividends) by the weighted average number of ordinary shares outstanding during the period 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 loss and share data used in the basic and diluted EPS computations: For the three months ended For the nine months ended November 3, October 28, November 3, October 28, 2018 2017 2018 2017 $ $ $ $ Net loss for basic EPS (9,061) (6,485) (20,261) (12,410) Weighted average number of shares outstanding — basic and fully diluted 25,992,339 25,829,090 25,862,086 25,659,164 As a result of the net loss during the three and nine-month periods ended November 3, 2018, the stock options and RSUs disclosed in Note 9 are anti-dilutive . |
RELATED PARTY DISCLOSURES
RELATED PARTY DISCLOSURES | 9 Months Ended |
Nov. 03, 2018 | |
RELATED PARTY DISCLOSURES | |
RELATED PARTY DISCLOSURES | 13. RELATED PARTY DISCLOSURES Other than the reimbursement of third-party costs described below incurred in connection with the proxy contest which culminated at the Company’s annual meeting held on June 14, 2018, (the “2018” Annual Meeting”), there have been no significant changes in related party transactions from those disclosed in the Company’s audited annual consolidated financial statements for the year ended February 3, 2018. During the three and nine months ended November 3, 2018, the Company purchased merchandise and services from a company controlled by one of its executive employees amounting to $125 and $222, respectively [October 28, 2017 — nil]. During the three and nine months ended November 3, 2018, the Company reimbursed Rainy Day Investments Ltd. (“Rainy Day Investments”), a controlling shareholder, nil and $957, respectively, for third-party costs incurred by it in connection with the proxy contest, as approved by the independent members of the Board of Directors of the Company. This amount is included in selling, general and administration expenses. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Nov. 03, 2018 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 14. 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 respective revenues from the retail and online sale of tea, tea accessories and food and beverages. The Company’s Interim Chief Executive Officer (the chief operating decision maker or “CODM”) makes decisions about resource allocation and assesses performance at the country level, and for which discrete financial information is available. The Company derives revenue from the following products: For the three months ended For the nine months ended November 3, October 28, November 3, October 28, 2018 2017 2018 2017 $ $ $ $ Tea 31,348 30,098 92,167 93,958 Tea accessories 8,478 8,636 25,979 30,315 Food and beverages 3,830 4,263 11,463 13,080 43,656 42,997 129,609 137,353 Property and equipment and intangible assets by country are as follows: November 3, February 3, 2018 2018 $ $ Canada 35,342 37,234 US 3,748 3,763 Total 39,090 40,997 During the fourth quarter of Fiscal 2017, 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 three and nine-month periods ended October 28, 2017. Results from operating activities before corporate expenses per country are as follows: For the three months ended For the nine months ended November 3, 2018 November 3, 2018 Canada US Consolidated Canada US Consolidated $ $ $ $ $ $ Sales 34,709 8,947 43,656 103,091 26,518 129,609 Cost of sales 19,520 5,755 25,275 55,060 16,133 71,193 Gross profit 15,189 3,192 18,381 48,031 10,385 58,416 Selling, general and administration expenses (allocated) 13,872 4,513 18,385 40,794 12,907 53,701 Impairment of property and equipment 725 — 725 3,096 189 3,285 Impact of onerous contracts 133 1,155 1,288 1,129 (643) 486 Results from operating activities before corporate expenses 459 (2,476) (2,017) 3,012 (2,068) 944 Selling, general and administration expenses (non-allocated) 8,721 27,393 Results from operating activities (10,738) (26,449) Finance costs 80 237 Finance income (122) (574) Loss before income taxes (10,696) (26,112) For the three months ended For the nine months ended October 28, 2017 October 28, 2017 Canada US Consolidated Canada US Consolidated $ $ $ $ $ $ Sales 35,495 7,502 42,997 112,803 24,550 137,353 Cost of sales 19,475 5,150 24,625 59,046 15,548 74,594 Gross profit 16,020 2,352 18,372 53,757 9,002 62,759 Selling, general and administration expenses (allocated) 12,414 4,319 16,733 37,806 13,265 51,071 Impairment of property and equipment 595 2,063 2,658 595 4,376 4,971 Impact of onerous contracts (150) (988) (1,138) (101) (3,812) (3,913) Results from operating activities before corporate expenses 3,161 (3,042) 119 15,457 (4,827) 10,630 Selling, general and administration expenses (non-allocated) 8,782 26,875 Results from operating activities (8,663) (16,245) Finance costs 327 615 Finance income (149) (420) Income before income taxes (8,841) (16,440) |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 9 Months Ended |
Nov. 03, 2018 | |
FINANCIAL RISK MANAGEMENT | |
FINANCIAL RISK MANAGEMENT | 15. FINANCIAL RISK MANAGEMENT The Company’s activities expose it to a variety of financial risks, including risks related to foreign exchange, interest rate, liquidity and credit. 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 $32. The Company’s foreign exchange exposure is as follows: November 3, February 3, 2018 2018 US$ US$ Cash 1,963 5,686 Accounts receivable 1,639 882 Accounts payable 4,247 2,555 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 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 IFRS 9. 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 three and nine-month periods ended November 3, 2018. The Company had no foreign exchange contracts outstanding as at November 3, 2018. The nominal and contract values of foreign exchange contracts outstanding as at October 28, 2017 are as follows: Nominal Nominal Unrealized Contractual value value gain exchange rate US$ C$ Term C$ Purchase contracts U.S. dollar 1.2221 - 1.3098 35,400 44,796 November 2017 to September 2018 628 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 with variable interest rates and consists of cash. The Company is exposed to cash flow risk on its Amended Revolving Facility which bears interest at variable interest rates (Note 8). As at November 3, 2018, the Company did not have any borrowings under the Amended 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 November 3, 2018, the Company had $18,714 in cash. The Company expects to finance its growth in store base, its store renovations and infrastructure investments through cash flows from operations and cash on hand. The Company expects that its trade and other payables will be discharged within 90 days. 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 consist 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. The terms of foreign currency forward contracts included in derivative financial instruments have been negotiated to match the terms of the forecasted inventory purchase transactions. Both contractual parties have fully cash-collateralized the foreign currency forward contracts, and therefore, effectively eliminated any credit risk associated with the contracts (both the counterparty’s and the Company’s own credit risk). Fair values Financial assets and financial liabilities are measured on an ongoing basis at fair value or amortized cost, based on the guidance provided in IFRS 9 and as disclosed in Note 3 in these unaudited condensed interim consolidated financial statements for the three and nine-month periods ended November 3, 2018. 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 Company enters into its foreign currency forward contracts with financial institutions with investment grade credit ratings. Foreign currency forward contracts are valued using valuation techniques with market observable inputs. The most frequently applied valuation techniques include forward pricing, using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. All foreign currency forward contracts are fully cash collateralized, thereby mitigating both the counterparty and the Company’s non-performance risk. There were no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the nine-month period ended November 3, 2018 or the nine-month period ended October 28, 2017. |
COMPARATIVE FIGURES
COMPARATIVE FIGURES | 9 Months Ended |
Nov. 03, 2018 | |
COMPARATIVE FIGURES | |
COMPARATIVE FIGURES | 16. COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform to the presentation adopted in the current quarter. |
CHANGES IN ACCOUNTING POLICIES
CHANGES IN ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
CHANGES IN ACCOUNTING POLICIES | |
Carrying amount of financial assets | February 3, 2018 February 3, 2018 IAS 39 IFRS 9 Measurement Carrying Measurement Carrying category Value category Value $ $ Cash FVTPL 63,484 FVTPL 63,484 Credit card cash clearing receivables Amortized cost 1,291 Amortized cost 1,291 Other receivables Amortized cost 1,840 Amortized cost 1,840 Derivative financial instruments FVTPL 229 FVTPL 229 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
INVENTORIES | |
Schedule of Inventory | November 3, February 3, 2018 2018 $ $ Finished goods 36,510 17,600 Goods in transit 2,784 4,608 Packaging 5,114 2,242 44,408 24,450 |
PROVISIONS (Tables)
PROVISIONS (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
PROVISIONS | |
Schedule of reconciliation of provisions | For the nine months ended November 3, 2018 $ Opening balance 18,153 Additions 5,894 Reversals (588) Utilization (4,820) Settlements (615) Accretion expense 177 Cumulative translation adjustment 891 Ending balance 19,092 Less: Current portion (4,658) Long-term portion of provisions 14,434 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
SHARE CAPITAL | |
Summary of authorized, issued, and outstanding shares | November 3, February 3, 2018 2018 $ $ 26,007,009 common shares [February 3, 2018 - 25,885,372 shares] 112,499 111,692 112,499 111,692 |
Summary of fair value assumptions for share options granted | October 28, 2017 Risk-free interest rate % Expected volatility % Expected option life years Expected dividend yield % Exercise price $ |
Summary of stock option plan and periodic changes | For the nine months ended November 3, October 28, 2018 2017 Weighted Weighted average average Options exercise Options exercise outstanding price outstanding price # $ # $ Outstanding, beginning of period 447,779 7.18 933,195 5.63 Issued — — 161,980 9.76 Exercised (88,135) 2.76 (436,773) 3.88 Forfeitures (220,791) 8.92 (135,135) 8.31 Outstanding, end of period 138,853 7.23 523,267 7.67 Exercisable, end of period 75,837 4.84 315,909 5.74 |
Summary of the status of the RSU plan and periodic changes | For the nine months ended November 3, October 28, 2018 2017 Weighted Weighted average average RSUs fair value RSUs fair value outstanding per unit (1) outstanding per unit (1) # $ # $ Outstanding, beginning of period 289,416 9.70 252,233 12.42 Granted 476,450 4.48 298,897 8.59 Forfeitures (327,479) 6.45 (34,864) 10.19 Vested (70,668) 9.08 (75,820) 12.21 Vested, withheld for tax (69,017) 8.91 (65,342) 11.40 Outstanding, end of period 298,702 5.26 375,104 9.80 (1) Weighted average fair value per unit as at date of grant. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
INCOME TAXES | |
Schedule of the reconciliation of the statutory income tax rate to the effective tax rate | For the three months ended For the nine months ended November 3, October 28, November 3, October 28, 2018 2017 2018 2017 % $ % $ % $ % $ Income tax recovery — statutory rate 26.9 (2,873) 26.8 (2,368) 26.9 (7,015) 26.8 (4,404) Increase (decrease) in provision for income tax (recovery) resulting from: Non-deductible items (0.4) 38 (0.4) 38 0.1 (31) (2.3) 385 Provision for uncertain tax position (8.8) 940 — — (3.6) 940 — — Other (2.4) 260 0.3 (26) (1.0) 255 0.1 (11) Income tax provision (recovery) — effective tax rate 15.3 (1,635) 26.7 (2,356) 22.4 (5,851) 24.6 (4,030) |
Schedule of the breakdown of the income tax provision (recovery) | For the three months ended For the nine months ended November 3, October 28, November 3, October 28, 2018 2017 2018 2017 $ $ $ $ Income tax provision (recovery) Current 940 (2,129) (1,930) (4,233) Deferred (2,575) (227) (3,921) 203 (1,635) (2,356) (5,851) (4,030) |
SELLING, GENERAL AND ADMINIST_2
SELLING, GENERAL AND ADMINISTRATION EXPENSES (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
SELLING, GENERAL AND ADMINISTRATION EXPENSES | |
Schedule of selling, general and administrative expenses | For the three months ended For the nine months ended November 3, October 28, November 3, October 28, 2018 2017 2018 2017 $ $ $ $ Wages, salaries and employee benefits 16,767 15,012 49,031 47,113 Depreciation of property and equipment 1,785 2,138 5,193 6,316 Amortization of intangible assets 377 494 905 1,248 Loss on disposal of property and equipment — 18 14 48 Impairment of property and equipment 725 2,658 3,285 4,971 Provision (recovery) for onerous contracts 3,414 (46) 5,306 (1,573) Utilization for onerous contracts (2,126) (1,092) (4,820) (2,340) Stock-based compensation 91 362 (7) 1,738 Executive separation costs related to salary 123 1,070 840 1,882 Strategic review and proxy contest costs 27 — 3,538 — Other selling, general and administration 7,936 6,421 21,580 19,601 29,119 27,035 84,865 79,004 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
EARNINGS PER SHARE | |
Schedule of reconciliation of basic and diluted EPS | For the three months ended For the nine months ended November 3, October 28, November 3, October 28, 2018 2017 2018 2017 $ $ $ $ Net loss for basic EPS (9,061) (6,485) (20,261) (12,410) Weighted average number of shares outstanding — basic and fully diluted 25,992,339 25,829,090 25,862,086 25,659,164 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
SEGMENT INFORMATION | |
Schedule of revenue by product | For the three months ended For the nine months ended November 3, October 28, November 3, October 28, 2018 2017 2018 2017 $ $ $ $ Tea 31,348 30,098 92,167 93,958 Tea accessories 8,478 8,636 25,979 30,315 Food and beverages 3,830 4,263 11,463 13,080 43,656 42,997 129,609 137,353 |
Schedule of property and equipment and intangible assets by country | November 3, February 3, 2018 2018 $ $ Canada 35,342 37,234 US 3,748 3,763 Total 39,090 40,997 |
Schedule of gross profit per country | For the three months ended For the nine months ended November 3, 2018 November 3, 2018 Canada US Consolidated Canada US Consolidated $ $ $ $ $ $ Sales 34,709 8,947 43,656 103,091 26,518 129,609 Cost of sales 19,520 5,755 25,275 55,060 16,133 71,193 Gross profit 15,189 3,192 18,381 48,031 10,385 58,416 Selling, general and administration expenses (allocated) 13,872 4,513 18,385 40,794 12,907 53,701 Impairment of property and equipment 725 — 725 3,096 189 3,285 Impact of onerous contracts 133 1,155 1,288 1,129 (643) 486 Results from operating activities before corporate expenses 459 (2,476) (2,017) 3,012 (2,068) 944 Selling, general and administration expenses (non-allocated) 8,721 27,393 Results from operating activities (10,738) (26,449) Finance costs 80 237 Finance income (122) (574) Loss before income taxes (10,696) (26,112) For the three months ended For the nine months ended October 28, 2017 October 28, 2017 Canada US Consolidated Canada US Consolidated $ $ $ $ $ $ Sales 35,495 7,502 42,997 112,803 24,550 137,353 Cost of sales 19,475 5,150 24,625 59,046 15,548 74,594 Gross profit 16,020 2,352 18,372 53,757 9,002 62,759 Selling, general and administration expenses (allocated) 12,414 4,319 16,733 37,806 13,265 51,071 Impairment of property and equipment 595 2,063 2,658 595 4,376 4,971 Impact of onerous contracts (150) (988) (1,138) (101) (3,812) (3,913) Results from operating activities before corporate expenses 3,161 (3,042) 119 15,457 (4,827) 10,630 Selling, general and administration expenses (non-allocated) 8,782 26,875 Results from operating activities (8,663) (16,245) Finance costs 327 615 Finance income (149) (420) Income before income taxes (8,841) (16,440) |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
FINANCIAL RISK MANAGEMENT | |
Summary of foreign exchange exposure | November 3, February 3, 2018 2018 US$ US$ Cash 1,963 5,686 Accounts receivable 1,639 882 Accounts payable 4,247 2,555 |
Summary of nominal and contract values of foreign exchange contracts | The Company had no foreign exchange contracts outstanding as at November 3, 2018. The nominal and contract values of foreign exchange contracts outstanding as at October 28, 2017 are as follows: Nominal Nominal Unrealized Contractual value value gain exchange rate US$ C$ Term C$ Purchase contracts U.S. dollar 1.2221 - 1.3098 35,400 44,796 November 2017 to September 2018 628 |
CHANGES IN ACCOUNTING POLICIE_2
CHANGES IN ACCOUNTING POLICIES - Carrying amount of financial assets held and measurement category (Details) $ in Thousands | Feb. 03, 2018CAD ($) |
Cash | FVTPL | |
Disclosure of financial assets [line items] | |
Financial assets | $ 63,484 |
Cash | Previously stated | FVTPL | |
Disclosure of financial assets [line items] | |
Financial assets | 63,484 |
Credit card cash clearing receivables | Amortized cost | |
Disclosure of financial assets [line items] | |
Financial assets | 1,291 |
Credit card cash clearing receivables | Previously stated | Amortized cost | |
Disclosure of financial assets [line items] | |
Financial assets | 1,291 |
Other receivables | Amortized cost | |
Disclosure of financial assets [line items] | |
Financial assets | 1,840 |
Other receivables | Previously stated | Amortized cost | |
Disclosure of financial assets [line items] | |
Financial assets | 1,840 |
Derivative financial instruments | FVTPL | |
Disclosure of financial assets [line items] | |
Financial assets | 229 |
Derivative financial instruments | Previously stated | FVTPL | |
Disclosure of financial assets [line items] | |
Financial assets | $ 229 |
INVENTORIES - By Class (Details
INVENTORIES - By Class (Details) - CAD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 |
INVENTORIES | ||
Finished goods | $ 36,510 | $ 17,600 |
Goods in transit | 2,784 | 4,608 |
Packaging | 5,114 | 2,242 |
Total current inventories | $ 44,408 | $ 24,450 |
PROPERTY AND EQUIPMENT - Impair
PROPERTY AND EQUIPMENT - Impairment losses (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Impairments and other information | ||||
Impairment of property and equipment | $ 725,000 | $ 2,658,000 | $ 3,285,000 | |
Value in use | $ 0 | $ 635,000 | $ 0 | $ 635,000 |
Pre-tax weighted average cost of capital rate | 11.90% | 13.40% | 11.90% | 13.40% |
U. S. | ||||
Impairments and other information | ||||
Impairment of property and equipment | $ 0 | $ 2,063,000 | $ 189,000 | $ 5,242,000 |
U. S. | CGUs | ||||
Impairments and other information | ||||
Value in use | 848,000 | 848,000 | ||
Reversal of impairment loss | 866,000 | 866,000 | ||
Canada | ||||
Impairments and other information | ||||
Impairment of property and equipment | $ 725,000 | $ 595,000 | $ 3,096,000 | $ 595,000 |
PROVISIONS - Change in provisio
PROVISIONS - Change in provisions (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | Feb. 03, 2018 | |
Reconciliation of changes in provisions for onerous contracts | |||||
Less: Current portion | $ (4,658) | $ (4,658) | $ (4,693) | ||
Long-term portion of provisions | 14,434 | 14,434 | $ 13,460 | ||
Onerous contracts | |||||
Reconciliation of changes in provisions for onerous contracts | |||||
Opening balance | 18,153 | ||||
Additions | 3,743 | $ 0 | 5,894 | $ 458 | |
Reversals | (329) | $ (46) | (588) | $ (2,031) | |
Utilization | (4,820) | ||||
Settlements | (615) | ||||
Accretion expense | 177 | ||||
Cumulative translation adjustment | 891 | ||||
Ending balance | 19,092 | 19,092 | |||
Less: Current portion | (4,658) | (4,658) | |||
Long-term portion of provisions | $ 14,434 | $ 14,434 |
REVOLVING FACILITY - Terms (Det
REVOLVING FACILITY - Terms (Details) - Revolving Facility - CAD ($) | Jun. 11, 2018 | Jun. 11, 2018 | Nov. 03, 2018 | Feb. 03, 2018 |
Agreement terms | ||||
Borrowings threshold, percentage of face value of all eligible receivables | 75.00% | |||
Borrowings threshold, percentage of face value of all eligible inventory | 50.00% | |||
Financial covenant, minimum fixed charge coverage ratio | 1.10 | |||
Financial covenant, minimum leverage ratio | 3 | |||
Financial covenant, minimum tangible net worth | $ 65,000,000 | |||
Financial covenant, minimum excess availability | 15,000,000 | |||
Term of facility | 2 years | |||
Principal amount | $ 15,000,000 | $ 15,000,000 | ||
Interest rate basis | The Amended Revolving Facility bears interest based on the Company's adjusted leverage ratio, at the bank's prime rate, U.S. bank rate and LIBOR plus a range from 0.5% to 2.5% per annum. | |||
Borrowings | $ 0 | $ 0 | ||
Bottom of range | ||||
Agreement terms | ||||
Percentage adjustment to base rate | 0.50% | 0.50% | ||
Standby fee (as a percent) | 0.30% | |||
Top of range | ||||
Agreement terms | ||||
Percentage adjustment to base rate | 2.50% | 2.50% | ||
Standby fee (as a percent) | 0.50% |
SHARE CAPITAL - Shares Authoriz
SHARE CAPITAL - Shares Authorized (Details) | 9 Months Ended |
Nov. 03, 2018 | |
SHARE CAPITAL | |
Number of shares authorised, unlimited | Unlimited |
SHARE CAPITAL - Shares Issued a
SHARE CAPITAL - Shares Issued and Outstanding (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | Feb. 03, 2018 | Jan. 28, 2017 | |
Issued and outstanding | ||||||
Issued and outstanding | $ 80,482 | $ 123,610 | $ 80,482 | $ 123,610 | $ 101,368 | $ 133,450 |
Number of shares issued | 26,007,009 | 26,007,009 | 25,885,372 | |||
Issuance of common shares | $ 82 | 1,696 | ||||
Common shares issued on vesting of restricted stock units | (393) | (556) | ||||
Share Capital. | ||||||
Issued and outstanding | ||||||
Issued and outstanding | $ 112,499 | 111,339 | 112,499 | 111,339 | $ 111,692 | 263,828 |
Reduction of stated capital | $ (155,947) | (155,947) | ||||
Issuance of common shares | 164 | 2,546 | ||||
Common shares issued on vesting of restricted stock units | 643 | $ 912 | ||||
Share Capital. | Common shares | ||||||
Issued and outstanding | ||||||
Issued and outstanding | $ 112,499 | $ 112,499 | 111,692 | |||
Issuance of common shares upon exercise of options (in shares) | 10,000 | 24,000 | 88,135 | 436,773 | ||
Issuance of common shares upon vesting of restricted stock units (in shares) | 1,128 | 19,819 | 70,668 | 75,820 | ||
Common shares issued on vesting of restricted stock units | $ 7 | $ 208 | $ 643 | $ 912 | ||
Contributed Surplus. | ||||||
Issued and outstanding | ||||||
Issued and outstanding | 1,230 | 7,936 | 1,230 | 7,936 | 2,642 | 8,833 |
Issuance of common shares | (82) | (850) | ||||
Common shares issued on vesting of restricted stock units | (1,322) | (1,652) | ||||
Contributed Surplus. | Common shares | ||||||
Issued and outstanding | ||||||
Reduction of stated capital | (3) | (22) | (82) | (850) | ||
Common shares issued on vesting of restricted stock units | (18) | (433) | (1,322) | (1,652) | ||
Deficit. | ||||||
Issued and outstanding | ||||||
Issued and outstanding | (34,696) | 1,323 | (34,696) | 1,323 | $ (14,721) | $ (142,398) |
Reduction of stated capital | 155,947 | |||||
Common shares issued on vesting of restricted stock units | 286 | 184 | ||||
Cash Proceeds | Common shares | ||||||
Issued and outstanding | ||||||
Increase (decrease) through exercise of options, equity | $ 8 | $ 90 | $ 82 | $ 1,696 | ||
Non-cash Settlement | Common shares | ||||||
Issued and outstanding | ||||||
Issuance of common shares upon exercise of options (in shares) | 36,418 | 36,418 | ||||
Increase (decrease) through exercise of options, equity | $ 0 | $ 121 |
SHARE CAPITAL - Stock-based com
SHARE CAPITAL - Stock-based compensation general information (Details) | Nov. 03, 2018shares |
Stock-based compensation | |
Maximum number of shares available for issuance | 842,905 |
Stock options | |
Stock-based compensation | |
Stock options granted | 0 |
SHARE CAPITAL - Weighted averag
SHARE CAPITAL - Weighted average fair value (Details) | 9 Months Ended |
Oct. 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 |
Risk-free interest rate (as a percent) | 1.79% |
Expected volatility (as a percent) | 27.40% |
Expected option life (in years) | item | 4 |
Expected dividend yield (as a percent) | 0.00% |
Exercise price (in dollars per share) | $ 9.76 |
SHARE CAPITAL - Stock option pl
SHARE CAPITAL - Stock option plan status and changes (Details) | 9 Months Ended | |
Nov. 03, 2018CAD ($)item | Oct. 28, 2017CAD ($)item | |
Change in options outstanding | ||
Outstanding, beginning of period (in shares) | item | 447,779 | 933,195 |
Issued (in shares) | item | 161,980 | |
Exercised (in shares) | item | (88,135) | (436,773) |
Forfeitures (in shares) | item | (220,791) | (135,135) |
Outstanding, end of period (in shares) | item | 138,853 | 523,267 |
Exercisable, end of period (in shares) | item | 75,837 | 315,909 |
Changes in the weighted average exercise price | ||
Outstanding, beginning of period (in dollars per share) | $ 7.18 | $ 5.63 |
Issued (in dollars per share) | 9.76 | |
Exercised (in dollars per share) | 2.76 | 3.88 |
Forfeitures (in dollars per share) | 8.92 | 8.31 |
Weighted average exercise price of share options outstanding in share-based payment arrangement at end of period | 7.23 | 7.67 |
Weighted average exercise price, exercisable (in dollars per share) | 4.84 | 5.74 |
Weighted average share price at the date of exercise for options exercised during the period (in dollars per share) | $ 4.47 | $ 8.68 |
SHARE CAPITAL - RSUs (Details)
SHARE CAPITAL - RSUs (Details) - RSUs | 9 Months Ended | |
Nov. 03, 2018CAD ($)itemshares | Oct. 28, 2017CAD ($)itemshares | |
Change in RSUs outstanding | ||
Outstanding, beginning of period (in shares) | item | 289,416 | 252,233 |
Granted (in shares) | item | 476,450 | 298,897 |
Forfeited (in shares) | item | (327,479) | (34,864) |
Vested (in shares) | item | (70,668) | (75,820) |
Vested, withheld for tax (in shares) | shares | (69,017) | (65,342) |
Outstanding, end of period (in shares) | item | 298,702 | 375,104 |
Change in the Weighted average fair value per unit | ||
Outstanding, beginning of period (in dollars per share) | $ 9.70 | $ 12.42 |
Granted (in dollars per share) | 4.48 | 8.59 |
Forfeitures (in dollars per share) | 6.45 | 10.19 |
Vested (in dollars per share) | 9.08 | 12.21 |
Vested, withheld for tax (in dollars per share) | (8.91) | 11.40 |
Outstanding, end of period (in dollars per share) | $ 5.26 | $ 9.80 |
SHARE CAPITAL - Compensation Ex
SHARE CAPITAL - Compensation Expense (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Nov. 03, 2018 | Nov. 03, 2018 | Oct. 28, 2017 | |
SHARE CAPITAL | |||
Stock-based compensation expense | $ 1 | ||
Net reversal of Stock-based compensation | $ 91 | $ 7 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Statutory Tax Rate (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Statutory income tax rate reconciliation, percent | ||||
Income tax recovery - statutory rate (as a percent) | 26.90% | 26.80% | 26.90% | 26.80% |
Non-deductible items (as a percent) | (0.40%) | (0.40%) | 0.10% | (2.30%) |
Provision for uncertain tax position (as a percent) | (8.80%) | (3.60%) | ||
Other (as a percent) | (2.40%) | 0.30% | (1.00%) | 0.10% |
Income tax provision (recovery) - effective tax rate (as a percent) | 15.30% | 26.70% | 22.40% | 24.60% |
Statutory income tax rate reconciliation, amount | ||||
Income tax provision — statutory rate | $ (2,873) | $ (2,368) | $ (7,015) | $ (4,404) |
Non-deductible items | 38 | 38 | (31) | 385 |
Provision for uncertain tax position | 940 | 940 | ||
Other | 260 | (26) | 255 | (11) |
Income tax recovery - effective tax rate | $ (1,635) | $ (2,356) | $ (5,851) | $ (4,030) |
INCOME TAXES - Provision (Detai
INCOME TAXES - Provision (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Income tax provision (recovery) | ||||
Current | $ 940 | $ (2,129) | $ (1,930) | $ (4,233) |
Deferred | (2,575) | (227) | (3,921) | 203 |
Income tax recovery - effective tax rate | $ (1,635) | $ (2,356) | $ (5,851) | $ (4,030) |
SELLING, GENERAL AND ADMINIST_3
SELLING, GENERAL AND ADMINISTRATION EXPENSES - Summary (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
SELLING, GENERAL AND ADMINISTRATION EXPENSES | ||||
Wages, salaries and employee benefits | $ 16,767 | $ 15,012 | $ 49,031 | $ 47,113 |
Depreciation of property and equipment | 1,785 | 2,138 | 5,193 | 6,316 |
Amortization of intangible assets | 377 | 494 | 905 | 1,248 |
Loss on disposal of property and equipment | 18 | 14 | 48 | |
Impairment of property and equipment | 725 | 2,658 | 3,285 | 4,971 |
Provision (recovery) for onerous contracts | (2,126) | (1,092) | (4,820) | (2,340) |
Utilization for onerous contracts | 3,414 | (46) | 5,306 | (1,573) |
Stock-based compensation | 91 | 362 | (7) | 1,738 |
Executive separation costs related to salary | 123 | 1,070 | 840 | 1,882 |
Strategic review and proxy contest costs | 27 | 3,538 | ||
Other selling, general and administration | 7,936 | 6,421 | 21,580 | 19,601 |
Selling, general and administrative expense | $ 29,119 | $ 27,035 | $ 84,865 | $ 79,004 |
EARNINGS PER SHARE - Loss and s
EARNINGS PER SHARE - Loss and share data used in the basic and diluted EPS computations (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
EARNINGS PER SHARE | ||||
Net loss for basic EPS | $ (9,061) | $ (6,485) | $ (20,261) | $ (12,410) |
Weighted average number of shares outstanding - basic and fully diluted | 25,992,339 | 25,829,090 | 25,862,086 | 25,659,164 |
RELATED PARTY DISCLOSURES (Deta
RELATED PARTY DISCLOSURES (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Board member | ||||
Related party transactions [abstract] | ||||
Merchandise purchased from related party | $ 125 | $ 0 | $ 222 | $ 0 |
Controlling Shareholder | ||||
Related party transactions [abstract] | ||||
Amount reimbursed for proxy contest fees | $ 0 | $ 957 |
SEGMENT INFORMATION - Product r
SEGMENT INFORMATION - Product revenue (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018CAD ($) | Oct. 28, 2017CAD ($) | Nov. 03, 2018CAD ($)segment | Oct. 28, 2017CAD ($) | |
Segment information | ||||
Number of reportable segments | segment | 2 | |||
Revenue | $ 43,656 | $ 42,997 | $ 129,609 | $ 137,353 |
Tea | ||||
Segment information | ||||
Revenue | 31,348 | 30,098 | 92,167 | 93,958 |
Tea accessories | ||||
Segment information | ||||
Revenue | 8,478 | 8,636 | 25,979 | 30,315 |
Food and beverages | ||||
Segment information | ||||
Revenue | $ 3,830 | $ 4,263 | $ 11,463 | $ 13,080 |
SEGMENT INFORMATION - Property
SEGMENT INFORMATION - Property and equipment and intangible assets (Details) - CAD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 |
IFRS Segment Reporting Information [Line Items] | ||
Property and equipment and intangible assets | $ 39,090 | $ 40,997 |
Canada | ||
IFRS Segment Reporting Information [Line Items] | ||
Property and equipment and intangible assets | 35,342 | 37,234 |
U. S. | ||
IFRS Segment Reporting Information [Line Items] | ||
Property and equipment and intangible assets | $ 3,748 | $ 3,763 |
SEGMENT INFORMATION - Gross pro
SEGMENT INFORMATION - Gross profit per country (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Segment information | ||||
Sales | $ 43,656 | $ 42,997 | $ 129,609 | $ 137,353 |
Cost of sales | 25,275 | 24,625 | 71,193 | 74,594 |
Gross profit | 18,381 | 18,372 | 58,416 | 62,759 |
Selling, general and administrative expenses | 29,119 | 27,035 | 84,865 | 79,004 |
Impairment of property and equipment | 725 | 2,658 | 3,285 | 4,971 |
Impact of onerous contracts | 1,288 | (1,138) | 486 | (3,913) |
Results from operating activities | (10,738) | (8,663) | (26,449) | (16,245) |
Finance costs | 80 | 327 | 237 | 615 |
Finance income | (122) | (149) | (574) | (420) |
Loss before income taxes | (10,696) | (8,841) | (26,112) | (16,440) |
Canada | ||||
Segment information | ||||
Sales | 34,709 | 35,495 | 103,091 | 112,803 |
Cost of sales | 19,520 | 19,475 | 55,060 | 59,046 |
Gross profit | 15,189 | 16,020 | 48,031 | 53,757 |
Impairment of property and equipment | 725 | 595 | 3,096 | 595 |
Impact of onerous contracts | 133 | (150) | 1,129 | (101) |
U. S. | ||||
Segment information | ||||
Sales | 8,947 | 7,502 | 26,518 | 24,550 |
Cost of sales | 5,755 | 5,150 | 16,133 | 15,548 |
Gross profit | 3,192 | 2,352 | 10,385 | 9,002 |
Impairment of property and equipment | 2,063 | 189 | 4,376 | |
Impact of onerous contracts | 1,155 | (988) | (643) | (3,812) |
Operating segments | ||||
Segment information | ||||
Selling, general and administrative expenses | 18,385 | 16,733 | 53,701 | 51,071 |
Results from operating activities | (2,017) | 119 | 944 | 10,630 |
Operating segments | Canada | ||||
Segment information | ||||
Selling, general and administrative expenses | 13,872 | 12,414 | 40,794 | 37,806 |
Results from operating activities | 459 | 3,161 | 3,012 | 15,457 |
Operating segments | U. S. | ||||
Segment information | ||||
Selling, general and administrative expenses | 4,513 | 4,319 | 12,907 | 13,265 |
Results from operating activities | (2,476) | (3,042) | (2,068) | (4,827) |
Non-allocated | ||||
Segment information | ||||
Selling, general and administrative expenses | $ 8,721 | $ 8,782 | $ 27,393 | $ 26,875 |
FINANCIAL RISK MANAGEMENT - Cur
FINANCIAL RISK MANAGEMENT - Currency risk (Details) $ in Thousands, $ in Thousands | Nov. 03, 2018USD ($) | Nov. 03, 2018CAD ($) | Feb. 03, 2018USD ($) |
Currency risk | |||
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 | $ 32 | ||
Effect on net income (loss) of 5% rise in the Canadian dollar | $ 32 | ||
sf | |||
Currency risk - foreign exchange risk | |||
Foreign exchange exposure | $ 1,963 | $ 5,686 | |
Accounts receivable | |||
Currency risk - foreign exchange risk | |||
Foreign exchange exposure | 1,639 | 882 | |
Accounts payable | |||
Currency risk - foreign exchange risk | |||
Foreign exchange exposure | $ 4,247 | $ 2,555 |
FINANCIAL RISK MANAGEMENT - For
FINANCIAL RISK MANAGEMENT - Foreign exchange contracts (Details) - Foreign exchange purchase contracts, U.S. dollar item in Thousands, $ in Thousands | 9 Months Ended | |
Nov. 03, 2018 | Oct. 28, 2017CAD ($)item | |
Later than one month and not later than four months | Cash flow hedges | Currency risk | ||
Forward contracts | ||
Unrealized gain (loss) | $ | $ 628 | |
US$ | Bottom of range | ||
Forward contracts | ||
Hedged percentage of expected U.S. dollar inventory purchasing requirements | 80.00% | |
US$ | Top of range | ||
Forward contracts | ||
Hedged percentage of expected U.S. dollar inventory purchasing requirements | 90.00% | |
US$ | Later than one month and not later than four months | Cash flow hedges | Currency risk | ||
Forward contracts | ||
Nominal value | 35,400 | |
C$ | Later than one month and not later than four months | Cash flow hedges | Currency risk | ||
Forward contracts | ||
Nominal value | 44,796 |
FINANCIAL RISK MANAGEMENT - Liq
FINANCIAL RISK MANAGEMENT - Liquidity risk (Details) - CAD ($) | 9 Months Ended | |||||
Nov. 03, 2018 | Aug. 04, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Jan. 28, 2017 | |
Additional information about resources available for managing liquidity risks | ||||||
Cash | $ 18,714,000 | $ 39,623,000 | $ 63,484,000 | $ 36,865,000 | $ 56,407,000 | $ 64,440,000 |
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 | ||||||
Amount drawn | $ 0 | $ 0 |
FINANCIAL RISK MANAGEMENT - Fai
FINANCIAL RISK MANAGEMENT - Fair values (Details) - CAD ($) | 9 Months Ended | |
Nov. 03, 2018 | Oct. 28, 2017 | |
FINANCIAL RISK MANAGEMENT | ||
Transfers out of Level 1 to Level 2, assets | $ 0 | $ 0 |
Transfers out of Level 1 to Level 2, liabilities | 0 | 0 |
Transfers out of Level 2 to Level 1, assets | 0 | 0 |
Transfers out of Level 2 to Level 1, liabilities | $ 0 | $ 0 |