Birks Group reported a 13.7% year-over-year sales growth for its fiscal year ending March 30. This increase brought net sales to CAD $185.3 million and gross profit to CAD $73.6 million. Despite these gains, the company recorded a net loss of CAD $4.6 million, which is an improvement over the previous year’s net loss of CAD $7.4 million.
The increase in sales was driven by demand for watches and jewellery, alongside investments in customer experience and product development.
Comparable Store Sales and Operating Income
For the full fiscal year, Birks Group saw a 7.5% increase in comparable store sales and an 8.2% improvement in gross profit. The company also reported a positive operating income.
Jean-Christophe Bédos, president and chief executive officer of Birks Group, attributed the growth to enhanced customer experience initiatives and product demand. “We are pleased with the store renovation projects that were undertaken last year at our Chinook and Laval stores, which resulted in higher sales post opening,” Bédos said.
Financial Metrics and Expense Management
Key financial metrics from the annual earnings report include:
- Selling, general, and administrative (SG&A) expenses amounted to CAD $65.7 million, or 35.5% of net sales, down from CAD $66.1 million, or 40.6% of net sales in the previous fiscal year.
- The decrease in SG&A expenses was primarily due to reduced marketing costs (CAD $1.3 million) and lower non-cash stock-based compensation expenses (CAD $2.0 million).
- Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for fiscal 2024 were CAD $10.0 million, up from CAD $3.8 million in fiscal 2023.
- The company reported an operating income of CAD $1.2 million, an increase of CAD $5.0 million compared to an operating loss of CAD $3.8 million in the prior year.
Strategic Initiatives and Market Conditions
Despite inflationary pressures impacting consumer spending, Birks Group achieved strong sales performance. The company continues to evaluate the productivity of its existing stores and plans to close underperforming locations while opening new stores in prime retail areas. Additionally, Birks Group is investing in its website and e-commerce platform to enhance its digital presence.
Bédos highlighted the importance of these efforts in light of current economic conditions, stating, “The strong sales are especially noteworthy given the inflationary headwinds that consumers have been facing.”
