MONTREAL: Birks Group Inc. (NYSE American: BGI) on Friday reported a decline in fiscal 2025 net sales, citing lower branded jewelry sales linked to the exit of a third-party brand from two stores. Still, performance excluding that brand suggests underlying strength in timepiece sales and store expansion.
For the fiscal year ended March 29, the luxury jeweler posted net sales of C$177.8 million, down 4.0% from C$185.3 million in fiscal 2024. Comparable store sales declined 3.4%, but excluding the impact of the jewelry brand exit, comparable sales rose 6.9%, largely driven by timepiece transactions.
Gross profit was C$66.3 million, representing 37.3% of sales, versus 39.7% the prior year. The margin compression stemmed from sales mix changes and foreign exchange losses.
“We saw strong performance in our timepiece offerings,” CEO Jean-Christophe Bédos said in a statement. He noted gains tied to newly opened stores under the Birks and TimeVallée brands and enhanced locations in Chinook and Laval.
The company swung to an operating loss of C$5.5 million, impacted by a C$4.6 million impairment charge related to ERP delays. Net loss widened to C$12.8 million, or C$0.66 per share, compared to a loss of C$4.6 million in fiscal 2024.
Despite challenges, Birks continues to expand. It now operates over 30 stores under various luxury banners across Canada.