Document and Entity DEI Information - CAD ($)	12 Months Ended
Document and Entity DEI Information - CAD ($)	Feb. 02, 2019	Apr. 17, 2019	Aug. 03, 2018
Document and Entity Information
Entity Registrant Name	DAVIDsTEA Inc.
Entity Central Index Key	0001627606
Document Type	10-K
Document Period End Date	Feb. 02, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Current Fiscal Year End Date	--02-02
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 37,327,359
Entity Common Stock, Shares Outstanding		26,018,832
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Well Known Seasoned Issuer	No
Entity Voluntary Filers	Yes
Entity Shell Company	false

CONSOLIDATED BALANCE SHEETS - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Current
Cash	$ 42,074	$ 63,484
Accounts and other receivables	3,681	3,131
Inventories	34,353	24,450
Income tax receivable	4,107	2,968
Prepaid expenses and deposits	8,819	7,712
Total current assets	93,034	101,745
Property and equipment	23,788	36,558
Intangible assets	5,678	4,439
Deferred income tax assets		5,194
Total assets	122,500	147,936
Current
Trade and other payables	20,951	14,392
Deferred revenue	6,241	5,186
Current portion of provisions	3,714	4,693
Derivative financial instruments		229
Total current liabilities	30,906	24,500
Deferred rent and lease inducements	8,698	8,608
Provisions	15,440	13,460
Total liabilities	55,044	46,568
Equity
Share capital	112,519	111,692
Contributed surplus	1,400	2,642
Deficit	(47,960)	(14,721)
Accumulated other comprehensive income	1,497	1,755
Total equity	67,456	101,368
Total liabilities and equity	$ 122,500	$ 147,936

CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS - CAD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Profit or loss [abstract]
Sales	$ 212,753	$ 224,015	$ 215,984
Cost of sales	114,774	116,772	107,534
Gross profit	97,979	107,243	108,450
Selling, general and administration expenses	125,722	131,930	114,756
Results from operating activities	(27,743)	(24,687)	(6,306)
Finance costs	1,614	2,371	76
Finance income	(700)	(567)	(479)
Loss before income taxes	(28,657)	(26,491)	(5,903)
Provision for income tax (recovery)	4,882	2,010	(2,235)
Net loss	(33,539)	(28,501)	(3,668)
Items to be reclassified subsequently to income (loss):
Unrealized net gain (loss) on forward exchange contracts		(992)	(2,247)
Realized net (gain) loss on forward exchange contracts reclassified to inventory	230	309	(742)
Provision for income tax recovery (income tax) on comprehensive income	(63)	183	793
Cumulative translation adjustment	(425)	(932)	(820)
Other comprehensive loss, net of tax	(258)	(1,432)	(3,016)
Total comprehensive loss	$ (33,797)	$ (29,933)	$ (6,684)
Net loss per share:
Basic and fully diluted	$ (1.29)	$ (1.11)	$ (0.15)
Weighted average number of shares outstanding
Basic and fully diluted	25,967,836	25,716,186	24,699,290

CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
OPERATING ACTIVITIES
Net loss	$ (33,539)	$ (28,501)	$ (3,668)
Items not affecting cash:
Depreciation of property and equipment	6,904	8,431	8,069
Amortization of intangible assets	1,298	1,474	758
Write-Off of property and equipment	1,875	82	356
Impairment of property and equipment	9,960	15,069	7,516
Deferred rent	25	542	1,325
Provision (recovery) for onerous contracts	6,282	10,321	8,140
Stock-based compensation expense	211	2,021	2,264
Amortization of financing fees	64	79	75
Accretion on provisions	251	2,292
Deferred income taxes (recovery)	5,069	3,585	(4,380)
Cash flows related to operating activities before net change in working capital	(1,600)	15,395	20,455
Net change in other non-cash working capital balances related to operations	(11,628)	(5,537)	(9,293)
Cash flows related to operating activities	(13,228)	9,858	11,162
FINANCING ACTIVITIES
Proceeds from issuance of common shares pursuant to exercise of stock options	82	1,782	2,779
Cash flows related to financing activities	82	1,782	2,779
INVESTING ACTIVITIES
Additions to property and equipment	(3,898)	(9,634)	(20,531)
Additions to intangible assets	(4,366)	(2,962)	(1,484)
Cash flows related to investing activities	(8,264)	(12,596)	(22,015)
Decrease in cash during the year	(21,410)	(956)	(8,074)
Cash, beginning of year	63,484	64,440	72,514
Cash, end of year	42,074	63,484	64,440
Cash paid for:
Interest			1
Income taxes (classified as operating activity)	10	880	2,437
Cash received for:
Interest	650	574	486
Income taxes (classified as operating activity)	$ 1,774	$ 68	$ 532

CONSOLIDATED STATEMENTS OF EQUITY - CAD ($) $ in Thousands	Issued Capital	Contributed Surplus [Member]	Deficit	Accumulated Derivative Financial Instrument Adjustment	Accumulated Foreign Currency Translation Adjustment	Accumulated Other Comprehensive Income	Total
Balance, beginning of period at Jan. 28, 2017	$ 263,828	$ 8,833	$ (142,398)	$ 333	$ 2,854	$ 3,187	$ 133,450
Statement Line Items [Line Items]
Net loss for the year			(28,501)				(28,501)
Other comprehensive loss				(500)	(932)	(1,432)	(1,432)
Total comprehensive loss			(28,501)	(500)	(932)	(1,432)	(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 expense		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)	(167)	1,922	1,755	101,368
Statement Line Items [Line Items]
Net loss for the year			(33,539)				(33,539)
Other comprehensive loss				167	(425)	(258)	(258)
Total comprehensive loss			(33,539)	167	(425)	(258)	(33,797)
Issuance of common shares	164	(82)					82
Common shares issued on vesting of restricted stock units	663	(1,370)	300				(407)
Stock-based compensation expense		211					211
Income tax impact associated with stock options		(1)					(1)
Balance, end of period at Feb. 02, 2019	$ 112,519	$ 1,400	$ (47,960)		$ 1,497	$ 1,497	$ 67,456

BASIS OF PREPARATION

12 Months Ended

Feb. 02, 2019

STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION

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, other than with respect to the adoption of new accounting standards as disclosed in note 4.

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 28, 2017, February 2, 2019 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

12 Months Ended

Feb. 02, 2019

CHANGES IN ACCOUNTING POLICIES

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 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 our consolidated statement of net 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 out consolidated statement of 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 our consolidated statement of 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 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

Impairment of financial assets

The Company applies the “expected credit loss” model. The impairment model applies to trade receivables. It requires a credit loss to be reflected in profit and loss immediately after an asset or receivable is acquired and subsequent changes in expected credit losses at each reporting date reflecting the change in credit risk. The Company applies the simplified approach for trade receivables and calculates expected credit losses based on lifetime expected credit losses.

ii.

Impairment of non-financial assets

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 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 our consolidated statement of 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 22.

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 Loss (“OCI”), while any ineffective portion is recognized immediately in out consolidated statement of loss. The amounts recognized in OCI are reclassified to inventory when such non-financial asset is recognized on the consolidated balance sheet, and our consolidated statement of 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 our consolidated statement of 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

Common shares

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

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 our consolidated statement of net loss as accrued.

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 is recognized when control of goods has been transferred at the amount of consideration to which the Company expects to be entitled. 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.

Gift card breakage

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 determined in proportion to the pattern of rights exercised by the customer. Gift card breakage is included in sales in the consolidated statement of loss.

ii.

Loyalty program

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. The Company introduced a new Loyalty program on January 1, 2019 that enhanced some features and removed expiry of points. Under the old program, points were redeemed for free tea or free beverages, depending on the number of points a customer has obtained over a limited collection period, typically a three-month period. Free tea offers were issued at the end of each collection period and redeemable within 60 days thereafter. Free beverage offers were issued at the end of the calendar collection period and redeemable within 60 days thereafter.

Starting January 1, 2019, the Company launched a new Frequent Steeper loyalty and rewards program that allows customers to earn points when they purchase products at the Company’s retail stores and on the Company’s website. Points are converted into offers to receive loose-leaf teas which must be redeemed within 60 days. Free beverage offers are issued once a customer has purchased 10 beverages which must be redeemed within 60 days.

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 fair value of Frequent Steeper points and offers are determined based on the estimated selling price of the loose-leaf tea, net of points and offers we expect will not be redeemed. The fair value of beverage offers is determined based on the estimated selling price of the beverage, net of beverage offers that are not expected to be redeemed. The relative selling price of points and offers issued are recorded as deferred revenue. Offers for loose-leaf tea and beverage offers are recognized as revenue on the earlier of redemption and expiry. On an ongoing basis, the Company monitors historical redemption rates. Frequent Steeper redemptions are included with total sales in our consolidated statement of net 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 our consolidated statement of loss except to the extent that they relate to items recognized directly in equity or in other comprehensive loss.

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 is calculated using the weighted average number of shares outstanding during the year.

The diluted earnings per share is 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. A financial asset or liability is recognized initially (at settlement date) at its fair value plus, in the case of a financial asset or liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the instrument. Financial assets and liabilities carried at fair value through profit or loss are initially recognized at fair value and transaction costs are expensed in the consolidated statements of loss.

After initial recognition, financial assets are measured at amortized cost or fair value. Where assets are measured at fair value, gains and losses are either recognized entirely in profit or loss (“FVTPL”) or recognized in other comprehensive income (“FVOCI”).

The Company classifies its financial assets and liabilities according to their characteristics and management's choices and intentions related thereto for the purposes of ongoing measurement.

Classifications that the Company has used for financial assets include:

(a) Amortized Cost – non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. This includes trade receivables, and these are recorded at amortized cost with gains and losses recognized in net income in the period that the asset is no longer recognized or becomes impaired; and

(b) FVTPL – financial assets which are classified as fair value through profit and loss. This includes cash and derivative financial instruments

Classifications that the Company has used for financial liabilities include:

a) Amortized cost – non-derivative financial liabilities measured at amortized cost with gains and losses recognized in net loss in the period that the liability is no longer recognized. This includes Trade and other payables; and

b) FVTPL – financial liabilities which are classified as fair value through profit and loss. This includes derivative financial instruments

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 our statement of 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 OCI in the cumulative translation account and reclassified from equity to our consolidated statement of loss on disposal of the net investment.

CHANGES IN ACCOUNTING PRINCIPLES

12 Months Ended

Feb. 02, 2019

Changes In Accounting Principles

CHANGES IN ACCOUNTING PRINCIPLES

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.

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
		Carrying		Carrying
	Measurement	Value	Measurement	Value
	category	$	category	$
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

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’s IFRS 9 expected credit loss model did not have a material impact on its consolidated financial statements.

	c)	Hedge accounting. 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 did 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.

Standards issued but not yet effective

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 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 elected to apply the modified retrospective method by setting right-of-use assets based on the lease liability at the date of initial application, adjusted by the amount of any prepaid or accrued lease payments, and will benefit from the following practical expedients;

	•	apply IFRS 16 exclusively to contracts that were previously identified as leases applying IAS 17,

	•	apply a single discount rate to a portfolio of leases with reasonably similar characteristics,

	•	rely on its assessment of whether leases are onerous applying IAS 37 immediately before the date of initial application as an alternative to performing an impairment review of the right-of-use asset,

	•	exclude initial direct costs from the measurement of the right-of-use asset at the date of initial application, and

	•	elect not to apply IFRS 16 to leases for which the underlying asset is of low value.

As of February 2, 2019, based on the information currently available, the Company estimates that it will recognize a right-of-use asset of approximately $62,800 to $66,000 and a lease liability of approximately $90,000 to $94,600. The right-of-use asset will be net of the provision for onerous leases and deferred rent and lease inducements relating to the leases recognised in the consolidated balance sheet immediately before the date of initial application. The actual impacts of the initial application of IFRS 16 may vary from the estimates provided, as the Company has not finalized all its calculations.

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 JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

12 Months Ended

Feb. 02, 2019

SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

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

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 inflows 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.

PROPERTY AND EQUIPMENT

12 Months Ended

Feb. 02, 2019

Property And Equipment

PROPERTY AND EQUIPMENT

	Leasehold			Furniture and			Computer
	improvements			equipment			hardware			Total
	$			$			$			$
Cost
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
Acquisitions		2,096			1,125			676			3,897
Disposals		(68	)		(32	)		-			(100	)
Cumulative translation adjustment		1,481			178			58			1,717
Balance, February 2, 2019		84,142			13,910			5,878			103,930

	Leasehold			Furniture and			Computer
	improvements			equipment			hardware			Total
	$			$			$			$
Accumulated depreciation and impairment
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
Depreciation		5,117			1,134			653			6,904
Impairment		8,164			1,411			351			9,926
Disposals		—			(16	)		—			(16	)
Cumulative translation adjustment		1,297			126			47			1,470
Balance, February 2, 2019		65,874			10,001			4,267			80,142

Net Carrying Value
Balance, February 3, 2018		29,337			5,293			1,928			36,558
Balance, February 2, 2019		18,268			3,909			1,611			23,788

For the year ended February 2, 2019, 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 $9,926 [February 3, 2018 - $15,069, January 28, 2017 — $7,516] related to store leasehold improvements, furniture and equipment and computer hardware was recorded in the Canada and U.S. segments for $7,686 and $2,240, respectively [February 3, 2018 - $5,114 and $9,955, January 28, 2017 —$1,116 and $6,400, 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 nil [February 3, 2018 - $1,097, January 28, 2017 —$472] 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% [February 3, 2018 – 11.9%, January 28, 2017 — 13.4%]. A reversal of impairment occurs when previously impaired CGUs see improved financial results. For the year ended February 2, 2019, no of impairment losses were reversed [February 3, 2018 - $866, January 28, 2017 — nil]. 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 2, 2019, the depreciation expense was $6,904 [February 3, 2018 - $8,431, January 28, 2017 —$8,069]; with $5,825 recorded in the Canada segment [February 3, 2018 - $6,387, January 28, 2017 — $5,583], $520 recorded in the U.S. segment [February 3, 2018 - $1,508, January 28, 2017 — $1,930], and $559 recorded in corporate selling, general and administration expenses [February 3, 2018 - $536, January 28, 2017 — $556]. Depreciation expense and net impairment losses are reported in the consolidated statement of loss and comprehensive loss under selling, general and administration expenses (Note 18).

INTANGIBLE ASSETS

12 Months Ended

Feb. 02, 2019

Intangible Assets

INTANGIBLE ASSETS

	Computer
	software			Other			Total
	$			$			$
Cost
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
Acquisitions		4,356			0			4,356
Disposal		(1,724	)		(178	)		(1,902	)
Cumulative translation adjustment		4			10			14
Balance, February 2, 2019		11,915			101			12,016

Accumulated amortization
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
Amortization		1,281			17			1,298
Impairment		34			-			34
Disposal		-			(111	)		(111	)
Cumulative translation adjustment		2			6			8
Balance, February 2, 2019		6,336			2			6,338

Net Carrying Value
Balance, February 3, 2018		4,260			179			4,439
Balance, February 2, 2019		5,579			98			5,678

Amortization expense is reported in the consolidated statement of loss under selling, general and administration expenses (Note 18).

Included in disposal is a write-off of $1,724 [February 2, 2018 – nil] related to costs incurred with respect to an ERP upgrade which the Company no longer intends to continue.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Feb. 02, 2019

Commitments And Contingencies

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 2, 2019, the Company has recognized in the consolidated statement of loss contingent rent amounting to $1,030 [February 3, 2018 - $1,742, January 28, 2017 — $2,312] and accrued for a contingent rent liability of $477 [February 3, 2018 - $725, January 28, 2017 —$1,001].

Included in the cost of sales and selling, general and administration expenses for the year ended February 2, 2019 is rent expense of $31,520 [February 3, 2018 - $31,565, January 28, 2017 — $29,173].

The following is a schedule of future minimum lease payments under operating leases:

	February 2,		February 3,
	2019		2018
	$		$
Within one year		21,089		19,840
After one year but not more than five years		66,790		86,844
More than five years		28,893		28,281
		116,772		134,965

REVOLVING FACILITY

12 Months Ended

Feb. 02, 2019

Revolving Facility

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. 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 February 2, 2019, the Company did not have any borrowings under the Amended Revolving Facility.

As at February 2, 2019, the Company is in breach of its fixed charge coverage ratio and certain non-financial covenants. BMO has temporarily agreed to forbear from exercising remedies under the Credit Agreement, however the Company cannot borrow under the facility. The Company is in good-faith discussions with BMO to install an asset based lending facility that will provide a revolving facility at commercial reasonable terms.

SHARE CAPITAL

12 Months Ended

Feb. 02, 2019

Share Capital

SHARE CAPITAL

Authorized

An unlimited number of common shares.

Issued and Outstanding

	February 2,		February 3,
	2019		2018
	$		$
Share Capital - Common shares		112,519		111,692

	Common
	shares
	#
Number of shares in issuance
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
Issuance of common shares upon exercise of options		51,717
Issuance of common shares upon vesting of restricted stock units		74,728
Balance, February 2, 2019		26,011,817

During the year ended February 2, 2019, 51,720 stock options were exercised for common shares, for cash proceeds of $82 and 36,415 common shares for a non-cash settlement of $121 [February 3, 2018 – 456,773 stock options 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 2, 2019 includes $82 [February 3, 2018 - $887] which corresponds to a reduction in the contributed surplus associated to options exercised during the period.

In addition, during the year ended February 2, 2019, 74,728 common shares [February 3, 2018 – 97,648, 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 $663, net of tax [February 2, 2018 - $1,142].

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 2, 2019, 867,882 common shares remain available for issuance under the 2015 Omnibus Plan.

No options were granted for the year ended February 2, 2019. The weighted average fair value of options granted of $2.39 for the year ended February 3, 2018 was estimated using the Black Scholes option pricing model, using the following assumptions; risk-free interest rate of 1.79%, expected volatility of 27.4%, expected option life of 4.0 years, expected dividend yield of nil%, and exercise price of $9.76. 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 2,

February 3,

2019

2018

Weighted

average

Options

exercise

Options

exercise

outstanding

price

outstanding

price

Outstanding, beginning of year

447,779

7.18

933,195

5.63

Issued

161,980

9.76

Exercised

(88,135

)

2.76

(456,773

)

3.9

Forfeitures

(222,104

)

8.95

(190,623

)

9.63

Outstanding, end of year

137,540

7.17

447,779

7.18

Exercisable, end of year

80,332

4.74

304,415

5.57

The weighted average share price at the date of exercise for options exercised during the year ended February 2, 2019 was $4.47 [February 3, 2018 — $8.51].

The following table summarizes information about the stock options outstanding at February 2, 2019 and February 3, 2018:

			Weighted				Number of
	Number		average		Weighted		options		Weighted
	outstanding at		contractual		average		exercisable at		average
	February 2,		remaining		exercise		February 2,		exercise
	2019		life		price		2019		price
Range of exercise prices	#		(years)		$		#		$
$0.77		31,100		1.1		0.77		31,100		0.77
$3.33 - $4.31		35,000		2.6		4.29		35,000		4.29
$8.76 - $10.28		53,225		5.1		10.28		-		-
$14.39 - $17.99		18,215		4.2		14.51		14,232		14.54
As at February 2, 2019		137,540		3.4		7.17		80,332		4.74

			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		50,600		2.3		0.77		50,600		0.77
$3.33 - $4.31		172,396		3.7		3.91		161,395		3.89
$8.76 - $10.28		161,980		6.4		9.76		55,530		8.76
$14.39 - $17.99		62,803		4.3		14.68		36,890		14.72
As at February 3, 2018		447,779		4.6		7.18		304,415		5.57

A summary of the status of the Company’s RSU plan and changes during the year ended February 2, 2019 and February 3, 2018 is presented below.

For the year ended

February 2,

February 3,

2019

2018

Weighted

average

RSUs

fair value

RSUs

fair value

outstanding

per unit (1)

outstanding

per unit (1)

Outstanding, beginning of year

289,416

9.7

252,233

12.42

Granted

491,450

4.47

298,897

8.59

Forfeitures

(360,371

)

6.31

(89,035

)

10.03

Vested

(74,728

)

8.85

(97,648

)

11.85

Vested, withheld for tax

(74,791

)

8.6

(75,031

)

11.28

Outstanding, end of year

270,976

5.26

289,416

9.7

(1) Weighted average fair value per unit as at date of grant.

During the year ended February 2, 2019, the Company recognized a stock-based compensation expense of $211 [February 3, 2018 - $2,021, January 28, 2017 — $2,264].

INCOME TAXES

12 Months Ended

Feb. 02, 2019

Income Taxes

INCOME TAXES

A reconciliation of the statutory income tax rate to the effective tax rate is as follows:

	For the year ended
	February 2,						February 3,						January 28,
	2019						2018						2017
	%			$			%			$			%			$
Income tax recovery — statutory rate		26.9			(7,700	)		26.8			(7,097	)		26.5			(1,564	)
Increase (decrease) in provision for income tax (recovery) resulting from:
Non-deductible items		(1.3	)		378			(1.6	)		437			(10.1	)		598
Effect of substantively enacted income tax rate changes		—			—			(7.9	)		2,090			—			—
Unrecognized deferred income tax assets		(15.0	)		4,306			(16.7	)		4,415			—			—
Write-down of deferred income tax assets		(18.2	)		5,194			(7.8	)		2,054			—			—
Provision for uncertain tax position		(9.4	)		2,700
Other		0.0			4			(0.4	)		111			21.5			(1,269	)
Income tax provision (recovery) — effective tax rate		(17.0	)		4,882			(7.6	)		2,010			37.9			(2,235	)

A breakdown of the income tax provision (recovery) on the consolidated statement of loss is as follows:

	For the year ended
	February 2,			February 3,			January 28,
	2019			2018			2017
	$			$			$
Income tax provision (recovery)
Current		(187	)		(1,575	)		2,145
Deferred		5,069			3,585			(4,380	)
		4,882			2,010			(2,235	)

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 during the year ended February 3, 2018.

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.

We are currently undergoing transfer pricing audit by the Canada Revenue Agency. While the Company believes that its filing positions are appropriate and supportable, periodically, certain matters may be challenged by tax authorities. We believe that our transfer pricing practices reflect the accurate economic allocation of profit and risk and that proper contemporaneous transfer pricing documentation is in place. Preliminary findings from the transfer pricing audit indicates a difference in the interpretation of the economics of the arrangement. Although the outcome of such matters is not predictable with assurance, we have nonetheless recorded a provision of $4.0 million comprised of $2.7 million and $1.3 milllion for taxes and interest, respectively. While the Company believes its tax provisions are adequate, the final determination of tax audits and any related disputes could be materially different from historical income tax provisions and accruals. The Company intends to vigorously defend its practices and believes it has sufficient arguments to mitigate the unfavorable outcome.

The tax effects of temporary differences and net operating losses that give rise to deferred income tax assets and liabilities are as follows:

	February 2,			February 3,
	2019			2018
	$			$
Deferred income tax assets
Operating losses carried forward		4,608			1,259
Tax values of property and equipment in excess of carrying value including impairment		3,505			1,553
Deferred rent		1,762			1,662
Stock options		3,843			3,401
Financing fees and IPO-related costs		588			1,197
Lease inducements		634			515
Provisions for onerous contracts		5,357			4,812
Other		665			635
Total deferred income tax assets		20,962			15,034
Deferred income tax liabilities
Unrealized foreign exchange gain on derivative financial instruments		-			62
Unrealized foreign exchange gain related to intercompany advances		(212	)		(113	)
Deferred income tax liabilities		(212	)		(51	)
Net		20,750			14,983
Unrecognized deferred income tax asset		(20,750	)		(9,789	)
Net deferred income tax assets (liabilities)		-			5,194

As at February 2, 2019, the Company’s Canadian operations have accumulated losses amounting to $11.9 million [February 3, 2018 — nil; January 28, 2017 — nil], which expire during the year 2039. As at February 2, 2019, the Company’s U.S. subsidiary has accumulated losses amounting to US$14.0 million [February 3, 2018 — US$14.2 million; January 28, 2017 — US$14.9 million], which expire during the years 2033 to 2039.

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 and other deductible temporary differences. Therefore, a full valuation allowance of $20,750 was recorded against the net deferred income tax asset.

The changes in the net deferred income tax asset were as follows for the fiscal years:

	February 2,			February 3,
	2019			2018
	$			$
Balance net, beginning of year		5,194			14,375
Deferred rent		101			(222	)
Canadian and U.S. operating losses carried forward		3,349			(1,180	)
Property and equipment, including store impairment		1,952			3,387
Stock options		442			(2,245	)
Financing fees and IPO-related costs		(609	)		(604	)
Foreign exchange gain on derivative financial instrument		(62	)		183
Unrealized foreign exchange gain on intercompany advances		(99	)		196
Lease inducement		120			(149	)
Unrecognized deferred income tax asset		(10,961	)		(9,789	)
Provisions for onerous contracts		544			1,447
Other		29			(205	)
Deferred income tax assets net, end of year		-			5,194

RELATED PARTY DISCLOSURES

12 Months Ended

Feb. 02, 2019

Disclosure of transactions between related parties [abstract]

RELATED PARTY DISCLOSURES

Transactions with related parties are measured at the exchange amount, being the consideration established and agreed to by the related parties.

During the year ended February 2, 2019, the Company purchased merchandise from a company controlled by one of its executive employees amounting to $241 [February 3, 2018 — $87; January 28, 2017 — nil]. Subsequent to year end, the Company extended its relationship by entering into an agreement for the purchase and sale of administrative and infrastructure services.

In February 2019, the Company entered into an arrangement with a related party of the controlling shareholder for the development of reporting and consulting services.

During the year ended February 2, 2019, the Company reimbursed Rainy Day Investments Ltd. (“Rainy Day Investments”), a controlling shareholder $957 for third-party costs incurred by it in connection with the proxy contest which culminated at the Company’s annual meeting held on June 14, 2018. This reimbursement was approved by the independent members of the Board of Directors of the Company. This amount is included in selling, general and administration expenses.

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 2,		February 3,		January 28,
	2019		2018		2017
	$		$		$

Wages, salaries ,bonus and director fees		2,706		4,071		3,434
Termination benefits		1,025		1,485		719
Stock-based compensation		101		1,809		1,377
Total compensation earned by key management personnel		3,832		7,365		5,530

SEGMENT INFORMATION

12 Months Ended

Feb. 02, 2019

Disclosure of operating segments [abstract]

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 2,		February 3,		January 28,
	2019		2018		2017
	$		$		$
Tea		152,761		156,125		143,280
Tea accessories		44,436		49,470		53,807
Food and beverages		15,556		18,420		18,897
		212,753		224,015		215,984

Property and equipment and intangible assets by country are as follows:

	February 2,		February 3,		January 28,
	2019		2018		2017
	$		$		$
Canada		27,996		37,234		41,432
US		1,470		3,763		12,686
Total		29,466		40,997		54,118

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

For the year ended

February 2, 2019

Canada

Consolidated

Sales

169,430

43,323

212,753

Cost of sales

89,604

25,170

114,774

Gross profit

79,826

18,153

97,979

Selling, general and administration expenses (allocated)

57,902

18,175

76,077

Impairment of property and equipment

7,719

2,240

9,960

Onerous contracts provision (recovery)

2,034

(1,482

)

552

Results from operating activities before corporate expenses

12,171

(780

)

11,391

Selling, general and administration expenses (non-allocated)

39,134

Results from operating activities

(27,743

)

Finance costs

1,614

Finance income

(700

)

Loss before income taxes

(28,657

)

	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	)

FINANCIAL RISK MANAGEMENT

12 Months Ended

Feb. 02, 2019

Disclosure of nature and extent of risks arising from financial instruments [abstract]

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 loss in the amount of $123.

The Company’s foreign exchange exposure is as follows:

	February 2,		February 3,
	2019		2018
	US$		US$
Cash		267		5,686
Accounts receivable		1,142		882
Accounts payable		3,869		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 loss for the years ended Februay 2, 2019 and February 3, 2018. As at February 2, 2019 and February 3, 2018, the designated portion of these hedges was considered effective.

The Company had no foreign exchange contracts outstanding as at February 2, 2019.

The nominal and contract values of foreign exchange contracts outstanding as at February 3, 2018 are as follows:

Range of

Nominal

Unrealized

Contractual

value

gain/(loss)

Purchase contracts

exchange rate

US$

Term

U.S. dollar

1.2221 - 1.3050

24,100

30,033

February 2018 to September 2018

(229

)

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 2, 2019 and 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 2, 2019, the Company had $42.1 million in cash. In addition, the Company has a Revolving Facility of $15,000, the full amount of which remained un-drawn as at February 2, 2019. Access to this Facility is further described in Note 14.

The Company expects to finance its working capital needs, store renovations, and investments in infrastructure through cash flows from operations 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 2, 2019 and February 3, 2018, and the effect such obligations are expected to have on liquidity and cash flows in future periods.

	February 2, 2019
	Payments due by period
			less than		Between		More than
	Total		1 year		1 and 5 years		5 years
Trade and other payables		18,251		18,251		-		-
Operating lease obligations		116,772		21,089		66,790		28,893
Purchase obligations		9,146		9,146		-		-
		144,169		48,486		66,790		28,893

	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

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. As a result, expected credit loss on these financial assets is not significant.

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. There were no outstanding derivative financial instruments at February 2, 2019.

The classification of financial instruments at February 3, 2018, as well as their carrying values and fair values, are shown in the tables below:

	Carrying		Fair
	value		value
	$		$
Financial assets
Derivative financial instruments — foreign forward exchange contracts		239		239
Financial liabilities
Derivative financial instruments — foreign forward exchange contracts		468		468

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 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.

MANAGEMENT OF CAPITAL

12 Months Ended

Feb. 02, 2019

Disclosure of objectives, policies and processes for managing capital [abstract]

MANAGEMENT OF CAPITAL

The Company’s capital is composed of shareholders’ equity as follows:

	February 2,		February 3,
	2019		2018
	$		$
Cash		42,074		63,484
Shareholder s equity [excluding accumulated other comprehensive income]		65,959		99,613
Total capital under management		108,033		163,097

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 and capital expenditures for its store renovation program as well as information technology and infrastructure.

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.

As of February 2, 2019, the Company was in default under certain covenants contained in our Credit Agreement, including our failure to maintain a fixed charge coverage ratio of 1.10:1.00 and certain reporting requirements. BMO has temporarily agreed to forbear from exercising remedies under the Credit Agreement, however the Company cannot borrow under the Credit Agreement. During the year ended February 3, 2018 the Company also considered its access to the Revolving Facility as a source for funding its cash requirements, although it had not drawn on the Revolving facility at February 3, 2018.

GUARANTEES

12 Months Ended

Feb. 02, 2019

GUARANTEES

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 POLICIES (Policies)

12 Months Ended

Feb. 02, 2019

CHANGES IN ACCOUNTING POLICIES

Basis of consolidation

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.

Cash

Cash on the consolidated balance sheet comprises cash at banks and on hand.

Inventory valuation

Property and equipment

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.

Intangible assets

Intangible assets consist of computer software, trademarks and patents.

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.

Store opening costs

Store opening costs are expensed as incurred.

Impairment of financial assets

Impairment of non-financial assets

Derivative financial instruments and hedge accounting

Provisions

Deferred lease inducements

Share capital

Common shares

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.

ii.

Preferred shares

Stock-based compensation

Revenue recognition

Gift card breakage

ii.

Loyalty program

Finance income

Interest income is recognized as interest accrues using the effective interest method.

Income taxes

Earnings per share

Basic earnings per share is calculated using the weighted average number of shares outstanding during the year.

Financial instruments

The Company classifies its financial assets and liabilities according to their characteristics and management's choices and intentions related thereto for the purposes of ongoing measurement.

Classifications that the Company has used for financial assets include:

(b) FVTPL – financial assets which are classified as fair value through profit and loss. This includes cash and derivative financial instruments

Classifications that the Company has used for financial liabilities include:

b) FVTPL – financial liabilities which are classified as fair value through profit and loss. This includes derivative financial instruments

Foreign currency translation

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Feb. 02, 2019

Disclosure of detailed information about property, plant and equipment [abstract]

Schedule of property plant and equipment

	Leasehold			Furniture and			Computer
	improvements			equipment			hardware			Total
	$			$			$			$
Cost
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
Acquisitions		2,096			1,125			676			3,897
Disposals		(68	)		(32	)		-			(100	)
Cumulative translation adjustment		1,481			178			58			1,717
Balance, February 2, 2019		84,142			13,910			5,878			103,930

	Leasehold			Furniture and			Computer
	improvements			equipment			hardware			Total
	$			$			$			$
Accumulated depreciation and impairment
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
Depreciation		5,117			1,134			653			6,904
Impairment		8,164			1,411			351			9,926
Disposals		—			(16	)		—			(16	)
Cumulative translation adjustment		1,297			126			47			1,470
Balance, February 2, 2019		65,874			10,001			4,267			80,142

Net Carrying Value
Balance, February 3, 2018		29,337			5,293			1,928			36,558
Balance, February 2, 2019		18,268			3,909			1,611			23,788

SHARE CAPITAL (Tables)

12 Months Ended

Feb. 02, 2019

Disclosure of classes of share capital [abstract]

Summary of authorized, issued, and outstanding shares

	February 2,		February 3,
	2019		2018
	$		$
Share Capital - Common shares		112,519		111,692

	Common
	shares
	#
Number of shares in issuance
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
Issuance of common shares upon exercise of options		51,717
Issuance of common shares upon vesting of restricted stock units		74,728
Balance, February 2, 2019		26,011,817

Summary of stock option plan and periodic changes

For the year ended

February 2,

February 3,

2019

2018

Weighted

average

Options

exercise

Options

exercise

outstanding

price

outstanding

price

Outstanding, beginning of year

447,779

7.18

933,195

5.63

Issued

161,980

9.76

Exercised

(88,135

)

2.76

(456,773

)

3.9

Forfeitures

(222,104

)

8.95

(190,623

)

9.63

Outstanding, end of year

137,540

7.17

447,779

7.18

Exercisable, end of year

80,332

4.74

304,415

5.57

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 2,		remaining		exercise		February 2,		exercise
	2019		life		price		2019		price
Range of exercise prices	#		(years)		$		#		$
$0.77		31,100		1.1		0.77		31,100		0.77
$3.33 - $4.31		35,000		2.6		4.29		35,000		4.29
$8.76 - $10.28		53,225		5.1		10.28		-		-
$14.39 - $17.99		18,215		4.2		14.51		14,232		14.54
As at February 2, 2019		137,540		3.4		7.17		80,332		4.74

			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		50,600		2.3		0.77		50,600		0.77
$3.33 - $4.31		172,396		3.7		3.91		161,395		3.89
$8.76 - $10.28		161,980		6.4		9.76		55,530		8.76
$14.39 - $17.99		62,803		4.3		14.68		36,890		14.72
As at February 3, 2018		447,779		4.6		7.18		304,415		5.57

Summary of the status of the RSU plan and periodic changes

For the year ended

February 2,

February 3,

2019

2018

Weighted

average

RSUs

fair value

RSUs

fair value

outstanding

per unit (1)

outstanding

per unit (1)

Outstanding, beginning of year

289,416

9.7

252,233

12.42

Granted

491,450

4.47

298,897

8.59

Forfeitures

(360,371

)

6.31

(89,035

)

10.03

Vested

(74,728

)

8.85

(97,648

)

11.85

Vested, withheld for tax

(74,791

)

8.6

(75,031

)

11.28

Outstanding, end of year

270,976

5.26

289,416

9.7

INCOME TAXES (Tables)

12 Months Ended

Feb. 02, 2019

Major components of tax expense (income) [abstract]

Schedule of the reconciliation of the statutory income tax rate to the effective tax rate

	For the year ended
	February 2,						February 3,						January 28,
	2019						2018						2017
	%			$			%			$			%			$
Income tax recovery — statutory rate		26.9			(7,700	)		26.8			(7,097	)		26.5			(1,564	)
Increase (decrease) in provision for income tax (recovery) resulting from:
Non-deductible items		(1.3	)		378			(1.6	)		437			(10.1	)		598
Effect of substantively enacted income tax rate changes		—			—			(7.9	)		2,090			—			—
Unrecognized deferred income tax assets		(15.0	)		4,306			(16.7	)		4,415			—			—
Write-down of deferred income tax assets		(18.2	)		5,194			(7.8	)		2,054			—			—
Provision for uncertain tax position		(9.4	)		2,700
Other		0.0			4			(0.4	)		111			21.5			(1,269	)
Income tax provision (recovery) — effective tax rate		(17.0	)		4,882			(7.6	)		2,010			37.9			(2,235	)

Schedule of the breakdown of the income tax provision (recovery)

	For the year ended
	February 2,			February 3,			January 28,
	2019			2018			2017
	$			$			$
Income tax provision (recovery)
Current		(187	)		(1,575	)		2,145
Deferred		5,069			3,585			(4,380	)
		4,882			2,010			(2,235	)

Schedule of the tax effects of temporary differences and net operating losses

	February 2,			February 3,
	2019			2018
	$			$
Deferred income tax assets
Operating losses carried forward		4,608			1,259
Tax values of property and equipment in excess of carrying value including impairment		3,505			1,553
Deferred rent		1,762			1,662
Stock options		3,843			3,401
Financing fees and IPO-related costs		588			1,197
Lease inducements		634			515
Provisions for onerous contracts		5,357			4,812
Other		665			635
Total deferred income tax assets		20,962			15,034
Deferred income tax liabilities
Unrealized foreign exchange gain on derivative financial instruments		-			62
Unrealized foreign exchange gain related to intercompany advances		(212	)		(113	)
Deferred income tax liabilities		(212	)		(51	)
Net		20,750			14,983
Unrecognized deferred income tax asset		(20,750	)		(9,789	)
Net deferred income tax assets (liabilities)		-			5,194

Schedule of the changes in the net deferred income tax asset

	February 2,			February 3,
	2019			2018
	$			$
Balance net, beginning of year		5,194			14,375
Deferred rent		101			(222	)
Canadian and U.S. operating losses carried forward		3,349			(1,180	)
Property and equipment, including store impairment		1,952			3,387
Stock options		442			(2,245	)
Financing fees and IPO-related costs		(609	)		(604	)
Foreign exchange gain on derivative financial instrument		(62	)		183
Unrealized foreign exchange gain on intercompany advances		(99	)		196
Lease inducement		120			(149	)
Unrecognized deferred income tax asset		(10,961	)		(9,789	)
Provisions for onerous contracts		544			1,447
Other		29			(205	)
Deferred income tax assets net, end of year		-			5,194

SEGMENT INFORMATION (Tables)

12 Months Ended

Feb. 02, 2019

Disclosure of operating segments [abstract]

Schedule of revenue by product

	February 2,		February 3,		January 28,
	2019		2018		2017
	$		$		$
Tea		152,761		156,125		143,280
Tea accessories		44,436		49,470		53,807
Food and beverages		15,556		18,420		18,897
		212,753		224,015		215,984

Schedule of property and equipment and intangible assets by country

	February 2,		February 3,		January 28,
	2019		2018		2017
	$		$		$
Canada		27,996		37,234		41,432
US		1,470		3,763		12,686
Total		29,466		40,997		54,118

Schedule of gross profit per country

For the year ended

February 2, 2019

Canada

Consolidated

Sales

169,430

43,323

212,753

Cost of sales

89,604

25,170

114,774

Gross profit

79,826

18,153

97,979

Selling, general and administration expenses (allocated)

57,902

18,175

76,077

Impairment of property and equipment

7,719

2,240

9,960

Onerous contracts provision (recovery)

2,034

(1,482

)

552

Results from operating activities before corporate expenses

12,171

(780

)

11,391

Selling, general and administration expenses (non-allocated)

39,134

Results from operating activities

(27,743

)

Finance costs

1,614

Finance income

(700

)

Loss before income taxes

(28,657

)

	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	)

FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Feb. 02, 2019

Disclosure of nature and extent of risks arising from financial instruments [abstract]

Summary of foreign exchange exposure

	February 2,		February 3,
	2019		2018
	US$		US$
Cash		267		5,686
Accounts receivable		1,142		882
Accounts payable		3,869		2,555

Summary of nominal and contract values of foreign exchange contracts

Range of

Nominal

Unrealized

Contractual

value

gain/(loss)

Purchase contracts

exchange rate

US$

Term

U.S. dollar

1.2221 - 1.3050

24,100

30,033

February 2018 to September 2018

(229

)

Summary of obligations and the effect such obligations are expected to have on liquidity and cash flows

	February 2, 2019
	Payments due by period
			less than		Between		More than
	Total		1 year		1 and 5 years		5 years
Trade and other payables		18,251		18,251		-		-
Operating lease obligations		116,772		21,089		66,790		28,893
Purchase obligations		9,146		9,146		-		-
		144,169		48,486		66,790		28,893

	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

Summary of classification of financial instruments

	Carrying		Fair
	value		value
	$		$
Financial assets
Derivative financial instruments — foreign forward exchange contracts		239		239
Financial liabilities
Derivative financial instruments — foreign forward exchange contracts		468		468

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	Feb. 02, 2019 Integer
January 1, 2019 [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Description for redemption of points earned under loyalty and reward program	Under the old program, points were redeemed for free tea or free beverages, depending on the number of points a customer has obtained over a limited collection period, typically a three-month period. Free tea offers were issued at the end of each collection period and redeemable within 60 days thereafter. Free beverage offers were issued at the end of the calendar collection period and redeemable within 60 days thereafter
Stock option plan, maturity period	7 years
Leasehold improvements [member]
Disclosure of detailed information about property, plant and equipment [line items]
Number of extension options	1
Leasehold improvements [member] \| Maximum [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Optional renewal term (in years)	10 years
Deferred Lease Inducements [member]
Disclosure of detailed information about property, plant and equipment [line items]
Number of extension options	1
Deferred Lease Inducements [member] \| Maximum [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Optional renewal term (in years)	10 years
Computer software [member]
Disclosure of detailed information about property, plant and equipment [line items]
Amortisation percentage, rate	30.00%

CHANGES IN ACCOUNTING PRINCIPLES (Details) $ in Thousands	12 Months Ended
CHANGES IN ACCOUNTING PRINCIPLES (Details) $ in Thousands	Feb. 03, 2018 CAD ($)
IAS 39 [Member] \| Ifrs Cash [Member]
Disclosure of financial assets [line items]
Measurement category	FVTPL
Financial assets, carrying value	$ 63,484
IAS 39 [Member] \| Credit Card Cash Clearing Receivables [Member]
Disclosure of financial assets [line items]
Measurement category	Amortized cost
Financial assets, carrying value	$ 1,291
IAS 39 [Member] \| Other Receivables [Member]
Disclosure of financial assets [line items]
Measurement category	Amortized cost
Financial assets, carrying value	$ 1,840
IAS 39 [Member] \| Derivative financial instruments [Member]
Disclosure of financial assets [line items]
Measurement category	FVTPL
Financial assets, carrying value	$ 229
IFRS 9 [Member] \| Ifrs Cash [Member]
Disclosure of financial assets [line items]
Measurement category	FVTPL
Financial assets, carrying value	$ 63,484
IFRS 9 [Member] \| Credit Card Cash Clearing Receivables [Member]
Disclosure of financial assets [line items]
Measurement category	Amortized cost
Financial assets, carrying value	$ 1,291
IFRS 9 [Member] \| Other Receivables [Member]
Disclosure of financial assets [line items]
Measurement category	Amortized cost
Financial assets, carrying value	$ 1,840
IFRS 9 [Member] \| Derivative financial instruments [Member]
Disclosure of financial assets [line items]
Measurement category	FVTPL
Financial assets, carrying value	$ 229

- Definition

The amount of assets that are: (a) cash; (b) an equity instrument of another entity; (c) a contractual right: (i) to receive cash or another financial asset from another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or (d) a contract that will, or may be, settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is, or may be, obliged to receive a variable number of the entity’s own equity instruments; or (ii) a derivative that will, or may be, settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include puttable financial instruments classified as equity instruments in accordance with paragraphs 16A-16B of IAS 32, instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation and are classified as equity instruments in accordance with paragraphs 16C-16D of IAS 32, or instruments that are contracts for the future receipt or delivery of the entity’s own equity instruments. [Refer: Financial instruments, class [member]; Financial liabilities]

+ References + Details

CHANGES IN ACCOUNTING PRINCIPLES (Details Narrative) $ in Thousands	Feb. 02, 2019 CAD ($)
Minimum [Member]
Disclosure of financial assets [line items]
Right of use asset estimated to be recognized	$ 62,800
Lease liability on right of use asset to be recognized	90,000
Maximum [Member]
Disclosure of financial assets [line items]
Right of use asset estimated to be recognized	66,000
Lease liability on right of use asset to be recognized	$ 94,600

ACCOUNTS AND OTHER RECEIVABLES (Details) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Accounts And Other Receivables
Credit card cash clearing receivables	$ 1,477	$ 1,291
Other receivables	2,204	1,840
Total	$ 3,681	$ 3,131

INVENTORIES (Details) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Inventories Details Abstract
Finished goods	$ 28,991	$ 17,600
Goods in transit	3,262	4,608
Packaging	2,100	2,242
Total current inventories	$ 34,353	$ 24,450

INVENTORIES (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
INVENTORIES (Details Narrative) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Inventories Details Narrative Abstract
Inventories recognized	$ 63,195	$ 64,611	$ 62,995
Inventory includes write-down	703		869
Inventory written down		$ 730

PROPERTY AND EQUIPMENT (Details) - CAD ($) $ in Thousands	12 Months Ended
PROPERTY AND EQUIPMENT (Details) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Cost
Balance, at beginning of the period	$ 98,416	$ 90,688
Acquisitions	3,897	9,634
Disposals	(100)	(187)
Cumulative translation adjustment	1,717	(1,719)
Balance, at end of the period	103,930	98,416	$ 90,688
Accumulated depreciation and impairment
Balance, at beginning of the period	61,858	39,528
Depreciation	6,904	8,431	8,069
Impairment	9,926	15,069
Disposals	(16)	(105)
Cumulative translation adjustment	1,470	(1,065)
Balance, at end of the period	80,142	61,858	39,528
Net Carrying Value
Balance	23,788	36,558
Leasehold improvements [member]
Cost
Balance, at beginning of the period	80,633	75,555
Acquisitions	2,096	6,581
Disposals	(68)
Cumulative translation adjustment	1,481	(1,503)
Balance, at end of the period	84,142	80,633	75,555
Accumulated depreciation and impairment
Balance, at beginning of the period	51,296	32,342
Depreciation	5,117	6,394
Impairment	8,164	13,491
Disposals
Cumulative translation adjustment	1,297	(931)
Balance, at end of the period	65,874	51,296	32,342
Net Carrying Value
Balance	18,268	29,337
Furniture and equipment [Member]
Cost
Balance, at beginning of the period	12,639	11,185
Acquisitions	1,125	1,808
Disposals	(32)	(187)
Cumulative translation adjustment	178	(167)
Balance, at end of the period	13,910	12,639	11,185
Accumulated depreciation and impairment
Balance, at beginning of the period	7,346	5,048
Depreciation	1,134	1,357
Impairment	1,411	1,148
Disposals	(16)	(105)
Cumulative translation adjustment	126	(102)
Balance, at end of the period	10,001	7,346	5,048
Net Carrying Value
Balance	3,909	5,293
Computer hardware [Member]
Cost
Balance, at beginning of the period	5,144	3,948
Acquisitions	676	1,245
Disposals
Cumulative translation adjustment	58	(49)
Balance, at end of the period	5,878	5,144	3,948
Accumulated depreciation and impairment
Balance, at beginning of the period	3,216	2,138
Depreciation	653	680
Impairment	351	430
Disposals
Cumulative translation adjustment	47	(32)
Balance, at end of the period	4,267	3,216	$ 2,138
Net Carrying Value
Balance	$ 1,611	$ 1,928

PROPERTY AND EQUIPMENT (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Disclosure of detailed information about property, plant and equipment [line items]
Impairment loss of property and equipment	$ 9,926	$ 15,069	$ 7,516
Value in use		$ 1,097	$ 472
Pre-tax weighted average cost of capital rate	11.90%	11.90%	13.40%
Impairment loss reversed		$ 866
Depreciation	6,904	8,431	8,069
Corporate selling, general and administration expenses	559	536	556
Canada Segment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Impairment loss of property and equipment	7,686	5,114	1,116
Depreciation	5,825	6,387	5,583
United States Segment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Impairment loss of property and equipment	2,240	9,955	6,400
Depreciation	$ 520	$ 1,508	$ 1,930

INTANGIBLE ASSETS (Details) - CAD ($) $ in Thousands	12 Months Ended
INTANGIBLE ASSETS (Details) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Cost
Balance, at beginning of the period	$ 9,548	$ 6,600
Acquisitions	4,356	2,962
Cumulative translation adjustment	14	(14)
Disposals	(1,902)
Balance, at end of the period	12,016	9,548
Accumulated amortization
Balance, at beginning of the period	5,109	3,642
Amortization	1,298	1,474
Impairment	34
Disposals	(111)
Cumulative translation adjustment	8	(7)
Balance, at end of the period	6,338	5,109
Net Carrying Value
Balance	5,678	4,439
Computer software [member]
Cost
Balance, at beginning of the period	9,279	6,321
Acquisitions	4,356	2,962
Cumulative translation adjustment	4	(4)
Disposals	(1,724)
Balance, at end of the period	11,915	9,279
Accumulated amortization
Balance, at beginning of the period	5,019	3,565
Amortization	1,281	1,456
Impairment	34
Disposals
Cumulative translation adjustment	2	(2)
Balance, at end of the period	6,336	5,019
Net Carrying Value
Balance	5,579	4,260
Other Intangible Assets [Member]
Cost
Balance, at beginning of the period	269
Acquisitions	0
Cumulative translation adjustment	10
Disposals	(178)
Balance, at end of the period	101	269
Accumulated amortization
Balance, at beginning of the period	90
Amortization	17
Impairment
Disposals	(111)
Cumulative translation adjustment	6
Balance, at end of the period	2	90
Net Carrying Value
Balance	98
Other Intangible Assets [Member]
Cost
Balance, at beginning of the period	269	279
Acquisitions
Cumulative translation adjustment		(10)
Balance, at end of the period		269
Accumulated amortization
Balance, at beginning of the period	$ 90	77
Amortization		18
Cumulative translation adjustment		(5)
Balance, at end of the period		90
Net Carrying Value
Balance		$ 179

TRADE AND OTHER PAYABLES (Details) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Trade and other payables [abstract]
Trade payable and accrued liabilities	$ 14,990	$ 11,221
Income taxes payable	2,700
Government remittances		186
Wages, salaries and employee benefits payable	3,261	2,985
Total	$ 20,951	$ 14,392

PROVISIONS (Details) - CAD ($) $ in Thousands	12 Months Ended
PROVISIONS (Details) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Reconciliation of changes in provisions for onerous contracts
Less: Current portion	$ (3,714)	$ (4,693)
Long-term portion of provisions	15,440	13,460
Onerous Contracts Provision [Member]
Reconciliation of changes in provisions for onerous contracts
Opening balance	18,153	8,494
Additions	11,078	14,073
Reversals	(4,796)	(3,752)
Utilization	(5,730)	(2,467)
Settlements	(691)	(132)
Accretion expense	251	2,292
Cumulative translation adjustment	889	(355)
Ending balance	19,154	18,153
Less: Current portion	(3,714)	(4,693)
Long-term portion of provisions	$ 15,440	$ 13,460

COMMITMENTS AND CONTINGENCIES (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Operating lease commitments
Contingent rents recognized in income (loss)	$ 1,030	$ 1,742	$ 2,312
Contingent rents accrued as a liability	6,400	725	1,001
Rent expense	31,520	31,565	29,173
Future minimum lease payments under operating leases	116,772	134,965	$ 148,436
Within One Year [Member]
Operating lease commitments
Future minimum lease payments under operating leases	21,089	19,840
After One Year But Not More Than Five Years [Member]
Operating lease commitments
Future minimum lease payments under operating leases	66,790	86,844
More Than Five Years [Member]
Operating lease commitments
Future minimum lease payments under operating leases	$ 28,893	$ 28,281

REVOLVING FACILITY - Terms (Details) - Credit Agreement Bank Of Montreal [Member] $ in Thousands	Jun. 11, 2018 CAD ($)	Feb. 02, 2019 CAD ($)
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
Financial covenant, minimum excess availability	$ 15,000
Term of facility	2 years
Principal amount	$ 15,000
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.
Description of standby fee range	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.
Borrowings		$ 0

SHARE CAPITAL (Details) - CAD ($) $ in Thousands	12 Months Ended
SHARE CAPITAL (Details) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 02, 2019	Feb. 03, 2018
Disclosure of classes of share capital [line items]
Common shares authorized	Unlimited		Unlimited
Issued Capital [Member]
Disclosure of classes of share capital [line items]
Issued and outstanding	$ 112,519	$ 112,519	$ 111,692
Ordinary Shares [Member] \| Issued Capital [Member]
Number of shares in issuance
Balance, beginning of period (shares)		25,885,372	25,330,951
Issuance of common shares upon exercise of options (in shares)		51,717	456,773
Issuance of common shares upon vesting of restricted stock units (in shares)		74,728	97,648
Balance, end of period (shares)	26,011,817	26,011,817	25,885,372

SHARE CAPITAL (Details 1) - $ / shares	12 Months Ended
SHARE CAPITAL (Details 1) - $ / shares	Feb. 02, 2019	Feb. 03, 2018
Change in options outstanding
Outstanding, beginning of period (in shares)	447,779	933,195
Issued (in shares)		161,980
Exercised (in shares)	(88,135)	(456,773)
Forfeitures (in shares)	(222,104)	(190,623)
Outstanding, end of period (in shares)	137,540	447,779
Exercisable, end of period (in shares)	80,332	304,415
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	3.9
Forfeitures (in dollars per share)	8.95	9.63
Weighted average exercise price of share options outstanding in share-based payment arrangement at end of period	7.17	7.18
Weighted average exercise price, exercisable (in dollars per share)	$ 4.74	$ 5.57

SHARE CAPITAL (Details 2)	Feb. 02, 2019 Integer $ / shares shares	Feb. 03, 2018 Integer $ / shares shares
Range of exercise price
Number outstanding (in shares) \| shares	137,540	447,779
Weighted average contractual remaining life (in years) \| Integer	3.4	4.6
Weighted average exercise price, outstanding (in dollars per share)	$ 7.17	$ 7.18
Number of options exercisable (in shares) \| shares	80,332	304,415
Weighted average exercise price, exercisable (in dollars per share)	$ 4.74	$ 5.57
Share Based Compensation Plan Share Options Price Range One [Member]
Range of exercise price
Exercise price (in dollars per share)	$ 0.77	$ 0.77
Number outstanding (in shares) \| shares	31,100	50,600
Weighted average contractual remaining life (in years) \| Integer	1.1	2.3
Weighted average exercise price, outstanding (in dollars per share)	$ 0.77	$ 0.77
Number of options exercisable (in shares) \| shares	31,100	50,600
Weighted average exercise price, exercisable (in dollars per share)	$ 0.77	$ 0.77
Share Based Compensation Plan Share Options Price Range Two [Member]
Range of exercise price
Number outstanding (in shares) \| shares	35,000	172,396
Weighted average contractual remaining life (in years) \| Integer	2.6	3.7
Weighted average exercise price, outstanding (in dollars per share)	$ 4.29	$ 3.91
Number of options exercisable (in shares) \| shares	35,000	161,395
Weighted average exercise price, exercisable (in dollars per share)	$ 4.29	$ 3.89
Share Based Compensation Plan Share Options Price Range Two [Member] \| Minimum [Member]
Range of exercise price
Exercise price (in dollars per share)	3.33	3.33
Share Based Compensation Plan Share Options Price Range Two [Member] \| Maximum [Member]
Range of exercise price
Exercise price (in dollars per share)	$ 4.31	$ 4.31
Share Based Compensation Plan Share Options Price Range Three [Member]
Range of exercise price
Number outstanding (in shares) \| shares	53,225	161,980
Weighted average contractual remaining life (in years) \| Integer	5.1	6.4
Weighted average exercise price, outstanding (in dollars per share)	$ 10.28	$ 9.76
Number of options exercisable (in shares) \| shares		55,530
Weighted average exercise price, exercisable (in dollars per share)		$ 8.76
Share Based Compensation Plan Share Options Price Range Three [Member] \| Minimum [Member]
Range of exercise price
Exercise price (in dollars per share)	8.76	8.76
Share Based Compensation Plan Share Options Price Range Three [Member] \| Maximum [Member]
Range of exercise price
Exercise price (in dollars per share)	$ 10.28	$ 10.28
Share Based Compensation Plan Share Options Price Range Four [Member]
Range of exercise price
Number outstanding (in shares) \| shares	18,215	62,803
Weighted average contractual remaining life (in years) \| Integer	4.2	4.3
Weighted average exercise price, outstanding (in dollars per share)	$ 14.51	$ 14.68
Number of options exercisable (in shares) \| shares	14,232	36,890
Weighted average exercise price, exercisable (in dollars per share)	$ 14.54	$ 14.72
Share Based Compensation Plan Share Options Price Range Four [Member] \| Minimum [Member]
Range of exercise price
Exercise price (in dollars per share)	14.39	14.39
Share Based Compensation Plan Share Options Price Range Four [Member] \| Maximum [Member]
Range of exercise price
Exercise price (in dollars per share)	$ 17.99	$ 17.99

SHARE CAPITAL - RSUs (Details 3) - $ / shares	12 Months Ended
SHARE CAPITAL - RSUs (Details 3) - $ / shares	Feb. 02, 2019	Feb. 03, 2018
Change in RSUs outstanding
Outstanding, beginning of period (in shares)	447,779	933,195
Outstanding, end of period (in shares)	137,540	447,779
Change in the Weighted average fair value per unit
Outstanding, beginning of period (in dollars per share)	$ 7.18	$ 5.63
Forfeitures (in dollars per share)	$ 8.95	$ 9.63
Restricted Stock Units Rsus [Member]
Change in RSUs outstanding
Outstanding, beginning of period (in shares)	289,416	252,233
Granted (in shares)	491,450	298,897
Forfeited (in shares)	(360,371)	(89,035)
Vested (in shares)	(74,728)	(97,648)
Vested, withheld for tax (in shares)	(74,791)	(75,031)
Outstanding, end of period (in shares)	270,976	289,416
Change in the Weighted average fair value per unit
Outstanding, beginning of period (in dollars per share)	$ 9.7	$ 12.42
Granted (in dollars per share)	4.47	8.59
Forfeitures (in dollars per share)	6.31	10.03
Vested (in dollars per share)	8.85	11.85
Vested, withheld for tax (in dollars per share)	8.6	11.28
Outstanding, end of period (in dollars per share)	$ 5.26	$ 9.7

SHARE CAPITAL (Details Narrative) $ / shares in Units, $ in Thousands	12 Months Ended
	Feb. 02, 2019 CAD ($) Integer $ / shares shares	Feb. 03, 2018 CAD ($) Integer $ / shares shares	Jan. 28, 2017 CAD ($) Integer shares
Statement Line Items [Line Items]
Weighted average fair value of options granted (in dollars per share) \| $ / shares	$ 2.39
Risk-free interest rate (as a percent)	1.79%
Expected volatility (as a percent)	27.40%
Expected option life (in years) \| Integer	4.0
Expected dividend yield (as a percent)	0.00%
Exercise price (in dollars per share) \| $ / shares	$ 9.76
Stock-based compensation expense	$ 211	$ 2,021	$ 2,264
Weighted average share price at the date of exercise for options exercised during the period (in dollars per share) \| $ / shares	$ 4.47	$ 8.51
Common shares issued on vesting of restricted stock units	$ (407)	$ (611)
2015 Omnibus Plan [Member]
Statement Line Items [Line Items]
Issuance of common shares available \| shares	1,440,000
Maximum number of shares available for issuance \| shares	867,882
Options [member]
Statement Line Items [Line Items]
Issuance of common shares upon exercise of options \| shares	51,720	456,773	1,236,154
Issuance of common shares upon exercise of options, amount	$ 82	$ 1,782	$ 2,779
Reduction in the contributed surplus	$ 82	887
Options [member] \| Maximum [Member]
Statement Line Items [Line Items]
Vesting Period	4 years
Options [member] \| Minimum [Member]
Statement Line Items [Line Items]
Vesting Period	3 years
Noncash Settlement [Member]
Statement Line Items [Line Items]
Increase (decrease) through exercise of options, equity	$ 121
Issuance of common shares upon exercise of options \| shares	36,415
Restricted Stock Units Rsus [Member]
Statement Line Items [Line Items]
Common shares issued on vesting of restricted stock units	$ 663	$ 1,142
Vested (in shares) \| Integer	74,728	97,648	57,325

FINANCE COSTS (Details) - CAD ($) $ in Thousands	12 Months Ended
FINANCE COSTS (Details) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Finance Costs Details Abstract
Financing fees on term loan and Revolving Facility [note 14]	$ 2	$ 79	$ 75
Accretion on provisions	251	2,292
Interest and penalty on provision for uncertain tax position	1,300
Other finance cost	61		1
Finance costs	$ 1,614	$ 2,371	$ 76

INCOME TAXES (Details) - CAD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Statutory income tax rate reconciliation, percent
Income tax recovery - statutory rate (as a percent)	26.90%	26.80%	26.50%
Non-deductible items (as a percent)	(1.30%)	(1.60%)	(10.10%)
Effect of substantively enacted income tax rate changes (as a percent)		(7.90%)
Unrecognized deferred income tax asset (as a percent)	(15.00%)	(16.70%)
Write-down of deferred income tax asset (as a percent)	(18.20%)	(7.80%)
Provision for uncertain tax position (as a percent)	(9.40%)
Other (as a percent)	0.00%	(0.40%)	21.50%
Income tax provision (recovery) - effective tax rate (as a percent)	(17.00%)	(7.60%)	37.90%
Statutory income tax rate reconciliation, amount
Income tax provision — statutory rate	$ (7,700)	$ (7,097)	$ (1,564)
Non-deductible items	378	437	598
Effect of substantively enacted income tax rate changes		2,090
Unrecognized deferred income tax asset	4,306	4,415
Write-down of deferred income tax asset	5,194	2,054
Provision for uncertain tax position	2,700
Other	4	111	(1,269)
Income tax recovery - effective tax rate	$ 4,882	$ 2,010	$ (2,235)

INCOME TAXES (Details 1) - CAD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details 1) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Income tax provision (recovery)
Current	$ (187)	$ (1,575)	$ 2,145
Deferred	5,069	3,585	(4,380)
Income tax recovery - effective tax rate	$ 4,882	$ 2,010	$ (2,235)

- Definition

The aggregate amount included in the determination of profit (loss) for the period in respect of current tax and deferred tax. [Refer: Current tax expense (income); Deferred tax expense (income)]

+ References + Details

INCOME TAXES (Details 2) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Deferred income tax assets
Operating losses carried forward	$ 4,608	$ 1,259
Tax values of property and equipment in excess of carrying value including impairment	3,505	1,553
Deferred rent	1,762	1,662
Stock options	3,843	3,401
Financing fees and IPO-related costs	588	1,197
Lease inducements	634	515
Provisions for onerous contracts	5,357	4,812
Other	665	635
Total deferred income tax assets	20,962	15,034
Deferred income tax liabilities
Unrealized foreign exchange gain on derivative financial instruments		62
Unrealized foreign exchange gain related to intercompany advances	(212)	(113)
Deferred income tax liabilities	(212)	(51)
Net	20,750	14,983
Unrecognized deferred income tax asset	(20,750)	(9,789)
Net deferred income tax assets (liabilities)		$ 5,194	$ 14,375

INCOME TAXES (Details 3) - CAD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details 3) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Income Taxes Details 3Abstract
Balance net, beginning of year	$ 5,194	$ 14,375
Deferred rent	101	(222)
Canadian and U.S. operating losses carried forward	3,349	(1,180)
Property and equipment, including store impairment	1,952	3,387
Stock options	442	(2,245)
Financing fees and IPO-related costs	(609)	(604)
Foreign exchange gain on derivative financial instrument	(62)	183
Unrealized foreign exchange gain on intercompany advances	(99)	196
Lease inducement	120	(149)
Unrecognized deferred income tax asset	(10,961)	(9,789)
Provisions for onerous contracts	544	1,447
Other	29	(205)
Deferred income tax assets net, end of year		$ 5,194

INCOME TAXES (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details Narrative) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Statement Line Items [Line Items]
Provision for income tax (recovery)	$ 4,882	$ 2,010	$ (2,235)
Bonus depreciation	From 50% to 100% for qualified property placed in service after September 27, 2017 and before 2023.
Provision for transfer pricing audit	$ 4,000
Net	20,750	14,983
Taxes [Member]
Statement Line Items [Line Items]
Provision for transfer pricing audit	2,700
Interest [Member]
Statement Line Items [Line Items]
Provision for transfer pricing audit	1,300
U.S. Subsidiary [Member]
Statement Line Items [Line Items]
Accumulated losses	$ 1,400	1,420	$ 1,490
Expire year	2033 to 2039
Canadian Operations [Member]
Statement Line Items [Line Items]
Accumulated losses	$ 1,190
Expire year	2039

SELLING, GENERAL AND ADMINISTRATION EXPENSES (Details) - CAD ($)
$ in Thousands

12 Months Ended

Feb. 02, 2019

Feb. 03, 2018

Jan. 28, 2017

Expenses by nature [abstract]

Wages, salaries and employee benefits

$ 68,324

$ 65,888

$ 61,143

Depreciation of property and equipment

6,904

8,431

8,069

Amortization of intangible assets

1,298

1,474

758

Loss on disposal of property and equipment

151

356

Impairment of property and equipment

9,960

15,069

7,516

Net Provision for onerous contracts (a)

^[1]

552

7,854

8,140

Stock-based compensation

211

2,021

2,264

Executive and employee separation costs related to salary

1,280

2,033

835

Strategic review and proxy contest costs

3,593

ERP project termination

2,496

Other selling, general and administration

30,953

29,078

25,675

Selling, general and administrative expense

$ 125,722

$ 131,930

$ 114,756

[1]	(a) Net provision for onerous contract includes additions, reversals and utilization.

RELATED PARTY DISCLOSURES (Details) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Transactions
Termination benefits	$ 1,280	$ 2,033	$ 835
Key Management Personnel [Member]
Transactions
Wages, salaries ,bonus and director fees	2,706	4,071	3,434
Termination benefits	1,025	1,485	719
Stock-based compensation	101	1,809	1,377
Total compensation earned by key management personnel	$ 3,832	$ 7,365	$ 5,530

RELATED PARTY DISCLOSURES (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Joint Control Or Significant Influence [Member]
Disclosure of transactions between related parties [line items]
Amount reimbursed for proxy contest fees	$ 957
Key Management Personnel Of Entity Or Parent [Member]
Disclosure of transactions between related parties [line items]
Merchandise purchased from related party	$ 241	$ 87	$ 0

SEGMENT INFORMATION (Details 1) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
IFRS Segment Reporting Information [Line Items]
Property and equipment and intangible assets	$ 29,466	$ 40,997	$ 54,118
Canada Segment [Member]
IFRS Segment Reporting Information [Line Items]
Property and equipment and intangible assets	27,996	37,234	41,432
United States Segment [Member]
IFRS Segment Reporting Information [Line Items]
Property and equipment and intangible assets	$ 1,470	$ 3,763	$ 12,686

SEGMENT INFORMATION (Details 2) - CAD ($) $ in Thousands	12 Months Ended
SEGMENT INFORMATION (Details 2) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Segment information
Sales	$ 212,753	$ 224,015	$ 215,984
Cost of sales	114,774	116,772	107,534
Gross profit	97,979	107,243	108,450
Selling, general and administration expenses (allocated/non-allocated)	125,722	131,930	114,756
Impairment of property and equipment	9,960	15,069	7,516
Provision (recovery) for onerous contracts		7,854	8,140
Results from operating activities	(27,743)	(24,687)	(6,306)
Finance costs	1,614	2,371	76
Finance income	(700)	(567)	(479)
Loss before income taxes	(28,657)	(26,491)	(5,903)
Operating Segments [Member]
Segment information
Selling, general and administration expenses (allocated/non-allocated)	39,134	35,821	33,050
Impairment of property and equipment	9,960
Results from operating activities	11,391	11,134	26,744
Operating Segments [Member] \| Canada Segment [Member]
Segment information
Sales	169,430	185,287	180,380
Cost of sales	89,604	93,383	86,473
Gross profit	79,826	91,904	93,907
Selling, general and administration expenses (allocated/non-allocated)	57,902	54,884	49,466
Impairment of property and equipment	7,719	5,114	1,116
Provision (recovery) for onerous contracts	2,034	1,752	427
Results from operating activities	12,171	30,154	42,898
Operating Segments [Member] \| United States Segment [Member]
Segment information
Sales	43,323	38,728	35,604
Cost of sales	25,170	23,389	21,061
Gross profit	18,153	15,339	14,543
Selling, general and administration expenses (allocated/non-allocated)	18,175	18,302	16,584
Impairment of property and equipment	2,240	9,955	6,400
Provision (recovery) for onerous contracts	(1,482)	6,102	7,713
Results from operating activities	$ (780)	$ (19,020)	$ (16,154)

FINANCIAL RISK MANAGEMENT (Details 1) - Currency Risk - Foreign Exchange Risk [Member] $ in Thousands	12 Months Ended
	Feb. 03, 2018 CAD ($)
Disclosure of risk management strategy related to hedge accounting [line items]
Foreign exchange contracts outstanding, purchase contracts	U.S. dollar
Foreign exchange contracts outstanding, exchange rate	1.2221 - 1.3050
Foreign exchange contracts outstanding, term	February 2018 to September 2018
Foreign exchange contracts outstanding, unrealized gain	$ (229)
United States, Dollars
Disclosure of risk management strategy related to hedge accounting [line items]
Foreign exchange contracts outstanding, nominal value	24,100
Canada, Dollars
Disclosure of risk management strategy related to hedge accounting [line items]
Foreign exchange contracts outstanding, nominal value	$ 30,033

FINANCIAL RISK MANAGEMENT (Details 2) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Statement Line Items [Line Items]
Payments due, operating lease obligations	$ 116,772	$ 134,965	$ 148,436
Liquidity Risk [Member]
Statement Line Items [Line Items]
Payments due, trade and other payables	18,251	14,392
Payments due, operating lease obligations	116,772	134,965
Payments due, purchase obligations	9,146	8,820
Payments due, total	144,169	158,177
Liquidity Risk [Member] \| Less than 1 year [Member]
Statement Line Items [Line Items]
Payments due, trade and other payables	18,251	14,392
Payments due, operating lease obligations	21,089	19,840
Payments due, purchase obligations	9,146	8,820
Payments due, total	48,486	43,052
Liquidity Risk [Member] \| Between 1 and 5 years [Member]
Statement Line Items [Line Items]
Payments due, trade and other payables
Payments due, operating lease obligations	66,790	86,844
Payments due, purchase obligations
Payments due, total	66,790	86,844
Liquidity Risk [Member] \| More than 5 years [Member]
Statement Line Items [Line Items]
Payments due, trade and other payables
Payments due, operating lease obligations	28,893	28,281
Payments due, purchase obligations
Payments due, total	$ 28,893	$ 28,281

FINANCIAL RISK MANAGEMENT (Details 3) $ in Thousands	Feb. 03, 2018 CAD ($)
Financial assets
Derivative financial instruments - foreign forward exchange contracts, carrying value	$ 239
Derivative financial instruments - foreign forward exchange contracts, fair value	239
Financial liabilities
Derivative financial instruments - foreign forward exchange contracts, carrying value	468
Derivative financial instruments - foreign forward exchange contracts, fair value	$ 468

FINANCIAL RISK MANAGEMENT (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Statement Line Items [Line Items]
Cash	$ 42,074	$ 63,484	$ 64,440	$ 72,514
Currency Risk - Foreign Exchange Risk [Member]
Statement Line Items [Line Items]
Increase (decrease) in CAD against USD	5.00%
Increase (decrease) in net loss due to change in exchange rate	$ 123
Forward contract, description	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
Liquidity Risk [Member]
Statement Line Items [Line Items]
Cash	$ 42,074
Revolving credit faciltiy, borrowing capacity	$ 15,000
Trade and other payables payment period	90 days

MANAGEMENT OF CAPITAL (Details) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Management Of Capital
Cash	$ 42,074	$ 63,484	$ 64,440	$ 72,514
Shareholder's equity [excluding accumulated other comprehensive income]	65,959	99,613
Total capital under management	$ 108,033	$ 163,097

INTANGIBLE ASSETS (Details Narrative) $ in Thousands	12 Months Ended
INTANGIBLE ASSETS (Details Narrative) $ in Thousands	Feb. 02, 2019 CAD ($)
Disclosure of detailed information about intangible assets [line items]
Disposals	$ (1,902)
Computer software [member]
Disclosure of detailed information about intangible assets [line items]
Disposals	$ (1,724)

DEFERRED REVENUE (Details) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Accruals and deferred income [abstract]
Gift cards liability	$ 4,992	$ 3,982
Loyalty program liability	1,249	1,204
Deferred revenue	$ 6,241	$ 5,186

DEFERRED REVENUE (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Goods Or Services Transferred Over Time Gift Cards [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Deferred revenue recognized	$ 242	$ 575	$ 850

PROVISIONS (Details Narrative) - Onerous Contracts Provision [Member] - CAD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018
Disclosure of other provisions [line items]
Additions	$ 11,078	$ 14,073
Reversals	$ (4,796)	$ (3,752)

FINANCIAL RISK MANAGEMENT (Details) - Currency Risk - Foreign Exchange Risk [Member] - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Statement Line Items [Line Items]
Foreign exchange exposure, cash	$ 267	$ 5,686
Foreign exchange exposure, accounts receivable	1,142	882
Foreign exchange exposure, accounts payable	$ 3,869	$ 2,555

BASIS OF PREPARATION (Details Narrative)	12 Months Ended
BASIS OF PREPARATION (Details Narrative)	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Basis Of Preparation
Fiscal period (in weeks)	52-week period	53-week period	52-week period

EARNINGS PER SHARE (Details) - CAD ($) $ in Thousands	12 Months Ended
EARNINGS PER SHARE (Details) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Net loss per share:
Net loss for basic EPS	$ (33,539)	$ (28,501)	$ (3,688)
Weighted average number of shares outstanding - basic and fully diluted	25,967,836	25,716,186	24,699,290

SEGMENT INFORMATION (Details) - CAD ($) $ in Thousands	12 Months Ended
SEGMENT INFORMATION (Details) - CAD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Disclosure of operating segments [line items]
Revenue	$ 212,753	$ 224,015	$ 215,984
Tea [Member]
Disclosure of operating segments [line items]
Revenue	152,761	156,125	143,280
Tea Accessories [Member]
Disclosure of operating segments [line items]
Revenue	44,436	49,470	53,807
Food And Beverages [Member]
Disclosure of operating segments [line items]
Revenue	$ 15,556	$ 18,420	$ 18,897

MANAGEMENT OF CAPITAL (Details Narrative)	12 Months Ended
MANAGEMENT OF CAPITAL (Details Narrative)	Feb. 02, 2019
Management Of Capital
Debt default, description	As of February 2, 2019, the Company was in default under certain covenants contained in our Credit Agreement, including our failure to maintain a fixed charge coverage ratio of 1.10:1.00 and certain reporting requirements