Birks Group Inc. announced its financial results for the 26-week period ended 28 September 2024, reporting net sales of $80.1 million, an 8.8% decrease compared to $87.8 million during the same period of Fiscal 2024.
This $7.7 million reduction was primarily attributed to lower branded jewellery sales following the exit of a third-party jewellery brand from two stores.
Comparable store sales decreased by 4.9% during the period. Excluding the impact of the third-party jewellery brand exit, comparable store sales increased by 7.5%, driven by strong performance in branded timepieces.
Increased Losses Reflect Period Challenges
The company reported a net loss of $3.1 million, or $0.16 per share, for the period, compared to a net loss of $1.5 million, or $0.08 per share, in the same period of the previous year.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) were $4.7 million, slightly lower than the $5.0 million reported in Fiscal 2024. Operating results turned negative, with a $0.3 million operating loss compared to $0.5 million in operating income in the prior year.
Jean-Christophe Bédos, President and CEO of Birks Group, noted that while the exit of a third-party jewellery brand affected sales, comparable store sales excluding this impact showed growth. He also mentioned that the Chinook and Laval store renovations have supported sales improvements.
Key Takeaways for the Jewellery Industry
Although Birks Group faced challenges linked to its product mix, increased branded timepiece sales and cost-management measures helped mitigate some of the impact. The continued demand for branded timepieces underscores the importance of adapting inventory strategies to reflect changing consumer preferences.
These results highlight the operational and financial impacts that changes in brand partnerships, economic factors such as foreign exchange rates, and cost pressures can have on jewellers. For retailers, aligning inventory and cost strategies with evolving market conditions remains critical.
