DAVIDsTEA Inc (DTEA) returned to profit in its second-quarter results, but quarterly sales were on the decline as all of its retail stores in Canada and the United States were closed due to the COVID-19 pandemic.

DTEA earned 10 cents per diluted share versus a loss of 44 cents per share or $11.3 million in the prior year quarter. Excluding non-recurring items, which includes $3.2 million in restructuring costs and a Canadian government COVID-19 subsidy, adjusted loss per share came to six cents. Last year, the company had a loss of $6.3 million or 24 cents per share.

In the latest quarter, David’s Tea earnings before interest, taxes, depreciation and amortization (a non-IFRS measure) were $5.4 million, compared to -$4.8 million during the same quarter of fiscal 2019. The recent quarter has an impact of $1.2 million subsidy received from the Canadian Government as part of the COVID-19 Economic Response Plan. Therefore, adjusted EBITDA amounted to $1.4 million versus $0.4 million a year earlier.

Sales for the quarter that ended August 1, 2020 plunged 41.2 percent to $23 million from $39.2 million one year ago. Comparable sales decreased by 8.1 percent. Online sales increased by $15.0 million or 189.9% to $23.0 million as Covid-19 pushed customers toward online and wholesale channels. That is why its e-commerce sales penetration increased to 100 percent of total sales, which is an increase over 2019’s second-quarter sales figure of 20.2 percent.

The Montreal-based retailer said Monday gross profits decreased 61.8 percent from last year to $8.3 million. Gross profit as a percentage of sales decreased to 36.2 percent from 55.7 percent one year ago.

The company ended the quarter $34.3 million in cash.

DAVIDsTEA continues to 2,500 grocery stores and pharmacies in addition to 18 retail stores in Canada.

Investors were impressed and sent DTEA shares up more than 12 percent to $0.97 after Tuesday’s opening bell.