The Birks Group posted year-over-year sales growth of 13.7% for its fiscal year that ended on March 30, crediting strong demand for watches and jewelry in its full-year earnings report.

That increase led to net sales of $185.3 million (CAD) and gross profit of $73.6 million for the same period. For the same period, however, the company recorded a net loss of $4.6 million (CAD). That was smaller than the net loss of $7.4 million (CAD) that it saw in 2023.

Birks Group earnings for fiscal 2024

For its full fiscal year, Birks Group saw an increase in comparable store sales of 7.5%, and an improvement in gross profit of 8.2%. It also reported a positive operating income.

In addition to robust product demand, Jean-Christophe Bédos, president and chief executive officer of Birks Group, touted enhanced customer experience at the store level for boosting sales.

“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, adding that the company is continuing to invest in product mix and customer experience.

Among risks and uncertainties cited in forward-looking statements, the company noted that it plans to “evaluate the productivity of existing stores, close unproductive stores and open new stores in new prime retail locations, and invest in its website and ecommerce platform.”

Digital Commerce 360 reached out to The Birks Group for more comment and context but did not hear back.

Birks ranks No. 1766 in Digital Commerce 360’s Top 2000 Database of the largest North American e-retailers by online sales. Digital Commerce 360 classified Birks in the Jewelry category.

Inflation and other conditions

Bédos commented that the strong sales are especially noteworthy given the inflationary headwinds that consumers have been facing.

The Birks Group is a staple of the luxury jewelry market in Canada, operating 24 stores under the Birks brand in most major metro markets in Canada. They also operate stores under the Brinkhaus, Graff and Patek Philippe nameplates. Birks jewelry is also available at some U.S. retailers, such as Saks Fifth Avenue.

Other highlights from Birk’s annual earnings report included:

• Selling, general and administrative (SG&A) expenses in fiscal 2024 were $65.7 million (CAD), or 35.5% of net sales. That compares to $66.1 million (CAD), or 40.6% of net sales in fiscal 2023, a decrease of $0.4 million (CAD).
• The earnings report cited that the main drivers of the decrease in SG&A expenses in fiscal 2024 include lower marketing costs of $1.3 million (CAD) and lower non-cash stock-based compensation expenses of $2.0 million (CAD) due to the fluctuations in the Company’s stock price during the fiscal year.
• The company’s earnings before taxes interest and depreciation (EBITDA) for fiscal 2024 were $10.0 million (CAD), an increase of $6.2 million (CAD), compared to an EBITDA of $3.8 million (CAD) for fiscal 2023.

The company’s reported operating income for fiscal 2024 was $1.2 million (CAD), an increase of $5.0 million (CAD), compared to a reported operating loss of $3.8 million (CAD) for fiscal 2023.

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