Birks Group Inc. has reported lower sales and profitability for the fiscal year ended 29 March 2025, with results affected by the withdrawal of a third-party jewellery brand from two stores.
Increases in timepiece sales and the opening of new stores partially offset the decline in branded jewellery sales and foreign exchange losses.
Sales Performance
Net sales for fiscal 2025 totalled $177.8 million, down 4.0% from $185.3 million in the previous year. Comparable store sales fell 3.4%, primarily due to the loss of sales from the exited jewellery brand. Excluding this impact, comparable store sales rose 6.9%, driven mainly by stronger sales in third-party branded timepieces.
Chief Executive Officer Jean-Christophe Bédos said:
“Although our net sales and comparable store sales for fiscal 2025 are lower than fiscal 2024, when excluding the effect of third-party jewellery brand movement, comparable store sales are positive year-over-year, as a result of a strong retail performance and product offering particularly in our third-party branded timepieces. In fiscal 2025, we opened two new stores under the TimeVallée and Birks brands and continued to benefit from the fiscal 2024 renovations in our Chinook and Laval locations. These initiatives along with our recent announcement of the acquisition of the watch and jewellery business of European Boutique will continue to generate greater sales and contribute to improve our results.”
Profitability
Gross profit was $66.3 million, representing 37.3% of sales, compared to $73.6 million and 39.7% last year. The margin decline of 240 basis points was linked to the reduced contribution from higher-margin branded jewellery and to a foreign exchange loss, partly offset by increased timepiece sales.
Operating expenses were $59.5 million (33.5% of sales), down from $65.7 million (35.5% of sales) in fiscal 2024. The company attributed the $6.2 million reduction mainly to lower occupancy, marketing, and staff costs, as well as lease adjustments and store closures.
Adjusted EBITDA stood at $9.2 million, down from $10.0 million the previous year. Birks recorded an operating loss of $5.5 million, compared to a profit of $1.2 million in fiscal 2024, with the year’s results including a $4.6 million impairment on capitalised software costs from delays in implementing a new ERP system.
Outlook
Bédos said:
“I would like to thank our teams for their tireless efforts. The results achieved in fiscal 2025 are a testament to our commitment to our customers and I am grateful for the unwavering efforts of all our employees and the implementation of various initiatives during this past year to enhance our product offering and customer experience.”
The company has expanded its retail network with two new store openings and completed store refurbishments, as well as acquiring the watch and jewellery business of European Boutique. The impact of these developments will be reflected in future trading results.
