SEGMENT INFORMATION

3 Months Ended

Apr. 30, 2022

SEGMENT INFORMATION

9. 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 two operating segments, Canada, and the U.S., that derive their revenues from various distribution channels including online, retail and wholesale. The Company’s Chief Executive and Brand Officer and President, Chief Financial and Operations Officer (the chief operating decision makers or “CODM”) make 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:

	For the three-months ended
	April 30,		May 1,
	2022		2021
	$		$
Tea		17,975		20,469
Tea accessories		2,099		2,780
Food and beverages		361		—
		20,435		23,249

All property and equipment, right-of-used assets and intangible assets are located in Canada.

Results from operating activities before corporate expenses per country are as follows:   

	For the three-months ended
	April 30, 2022
	Canada		US		Consolidated
	$		$		$
Sales		16,745		3,690		20,435
Cost of sales		9,214		2,257		11,471
Gross profit		7,531		1,433		8,964
Selling, general and administration expenses (allocated)		3,409		590		3,999
Results from operating activities before corporate expenses		4,122		843		4,965
Selling, general and administration expenses (non-allocated)						6,807
Results from operating activities						(1,842	)
Finance costs						171
Finance income						(39	)
Net loss before income taxes						(1,974	)

	For the three-months ended
	May 1, 2021
	Canada		US		Consolidated
	$		$		$
Sales		18,129		5,120		23,249
Cost of sales		9,864		2,617		12,481
Gross profit		8,265		2,503		10,768
Selling, general and administration expenses (allocated)		2,264		499		2,763
Results from operating activities before corporate expenses		6,001		2,004		8,005
Selling, general and administration expenses (non-allocated)						6,431
Restructuring plan activities, net						(1,602	)
Results from operating activities						3,176
Finance costs						10
Finance income						(55	)
Net income before income taxes						3,221