MONTREAL - DavidsTea Inc. (DTEA.O) says it swung to a loss in its last quarter as onerous contract charges and impairments weighed on its balance sheet.

The specialty tea retailer says it had a loss of $16.1 million for the fourth quarter ending Feb. 3, compared with net income of $2 million for the same quarter last year.

The company says the charges included onerous contracts of $13.5 million due to underperforming stores opened in prior years, as well as impairment charges of $10.1 million.

Montreal-based DavidsTea says sales of tea accessories continued to be a challenge over the holiday season, as it worked to improve its selection.

The company says it recently launched a new e-commerce platform and saw double-digit internet sales growth over the fourth quarter a year earlier.

It has also invested in more merchandising and marketing staff which, along with the e-commerce investments, the company hopes will help sales in the second half of the fiscal year.