MONTREAL, Dec. 5, 2025 /CNW/ - Birks Group Inc. (the "Company" or "Birks Group") (NYSE American: BGI), today reported its financial results for the twenty-six-week period ended September 27, 2025.
Highlights
All figures presented herein are in Canadian dollars.
For the twenty-six-week period ended September 27, 2025 ("Fiscal 2026"), the Company reported net sales of $93.1 million, an increase of $13.0 million or 16.2% from the comparable prior period ended September 28, 2024 ("Fiscal 2025"). Comparable store sales for the twenty-six-week period ended September 27, 2025, increased by 6.3% compared to the corresponding period of Fiscal 2025. The increase in net sales is attributable in part to the acquisition of the luxury timepieces and jewelry retail activities of European Boutique ("European") as well as an increase in sales of third-party branded timepieces across multiple brands, Birks branded jewelry and third-party branded jewelry. The Company reported a gross profit of $36.5 million, an increase of $5.2 million, or 16.7%, compared to the corresponding period in Fiscal 2025, due to an increase in retail sales following the acquisition of European and strong third-party branded timepiece sales. Gross profit as a percentage of sales was 39.2% for the twenty-six-week period ended September 27, 2025, consistent with the gross profit as a percentage of sales of 39.0% in the twenty-six-week period ended September 28, 2024.
Mr. Niccolò Rossi di Montelera, Executive Chairman of the Board and Interim CEO, commented: "Our net sales, gross profit and comparable store sales for the first half of Fiscal 2026 are higher than the corresponding period in Fiscal 2025 due in part to the acquisition of the European business but also due to our strong retail performance, which speaks to the strength of our product offerings, both in terms of our Birks branded products and our third-party branded watches and jewelry."
Mr. Rossi di Montelera further commented: "I would like to thank our teams for their dedication and hard work. The growth achieved in the first half of Fiscal 2026 is a testament of our commitment to our customers and I am grateful for the unwavering efforts of all our employees which contributed to these results and the successful integration of the European stores."
Financial overview for the twenty-six-week period ended September 27, 2025
-- Total net sales for the twenty-six-week period ended September 27, 2025
were $93.1 million compared to $80.1 million for the twenty-six-week
period ended September 28, 2024, an increase of $13.0 million or 16.2%.
The increase in net sales is attributable in part to the acquisition of
European, as well as an increase in sales of third-party branded
timepieces across multiple brands and an increase in sales of Birks
branded jewelry and third-party branded jewelry. The retail sales
increase was further supported by an increase in units sold as well as an
increase in average sales transaction value.
-- Comparable store sales increased by 6.3% during the twenty-six-week
period ended September 27, 2025 compared to the twenty-six-week period
ended September 28, 2024. The increase in comparable store sales is
mainly attributable to strong sales in all product categories,
particularly in third-party branded timepieces, but also in Birks branded
jewelry and third-party branded jewelry. The comparable store sales
increase was further supported by an increase in units sold as well as an
increase in average sales transaction value.
-- Total gross profit was $36.5 million, or 39.2% of net sales, for the
twenty-six-week period ended September 27, 2025, compared to $31.3
million, or 39.0% of net sales for the twenty-six-week period ended
September 28, 2024. The increase of $5.2 million in total gross profit is
primarily attributable to an increase in sales volume in retail following
the acquisition of European and strong third-party branded timepiece
sales. The 0.2% increase in gross margin is primarily attributable to a
foreign exchange gain of $0.8 million compared to a loss in the
twenty-six-week period ended September 28, 2024, partially offset by
product mix. In addition, packaging, reserves and other costs were
approximately $0.6 million greater than the twenty-six-week period ended
September 28, 2024.
-- Selling General & Administrative ("SG&A") expenses in the twenty-six-week
period ended September 27, 2025 were $33.0 million, or 35.4% of net sales,
compared to $27.8 million, or 34.7% of net sales in the twenty-six-week
period ended September 28, 2024, an increase of $5.2 million. One of the
factors that contributed to this increase was the acquisition of European,
which contributed $2.6 million. Overall, compensation rose by $1.3
million due to higher sales volume and increased headcount. Credit card
fees increased by $0.7 million driven by higher sales. Occupancy costs
grew by $1.2 million as a result of additional stores. Transaction costs
related to the acquisition of European amounted to $0.4 million, while
severance costs totaled $0.9 million, primarily related to the CEO
transition. Professional fees and other expenses increased by $0.6
million and stock-based compensation rose by $0.2 million, mainly due to
fluctuations in the stock price. These increases were partially offset by
lower marketing costs, which decreased by $0.2 million as a result of
cost-saving measures, including reduced spending on events and campaigns.
As a percentage of sales, SG&A expenses in the twenty-six-week period
ended September 27, 2025 increased by 0.7% as compared to the
twenty-six-week period ended September 28, 2024.
-- The Company's EBITDA(1) for the twenty-six-week period ended September
27, 2025 was $4.8 million, an increase of $0.1 million, compared to
EBITDA(1) of $4.7 million for the twenty-six-week period ended September
28, 2024.
-- The Company reported an operating loss of $0.2 million for the
twenty-six-week period ended September 27, 2025, a decrease of $0.1
million compared to a reported operating loss of $0.3 million in the
twenty-six-week period ended September 28, 2024.
-- The Company's recognized interest expense and other financing costs in
the twenty-six week period ended September 27, 2025 were $3.7 million, a
decrease of $0.3 million, compared to recognized interest expense and
other financing costs of $4.0 million in the twenty-six-week period ended
September 28, 2024. The decrease is mainly due to an increase of the
foreign exchange gain of $0.9 million on U.S. denominated debt due to the
weakening of the U.S dollar compared to the Canadian dollar during the
respective periods, offset by an increase in the average amount
outstanding on the amended credit facility and amended term loan.
-- The Company recognized a net loss for the twenty-six-week period ended
September 27, 2025 of $2.6 million, or ($0.13) per share, compared to a
net loss for the twenty-six-week period ended September 28, 2024 of $3.1
million, or ($0.16) per share.
(1) This is a non-GAAP financial measure defined below
under "Non-GAAP Measures" and accompanied by a reconciliation
to the most directly comparable GAAP financial measure.
About Birks Group Inc.
Birks Group is a leading designer of fine jewelry and an operator of luxury jewelry, timepieces and gifts retail stores in Canada. The Company operates 17 stores under the Maison Birks brand in most major metropolitan markets in Canada, one retail location in Montreal under the Birks brand, one retail location in Montreal under the TimeVallée brand, one retail location in Calgary under the Brinkhaus brand, one retail location in Vancouver under the Graff brand, one retail location in Vancouver under the Patek Philippe brand, four retail locations in Laval, Ottawa and Toronto under the Breitling brand, four retail locations in Toronto under the European Boutique brand, one retail location in Toronto under the Omega brand and one retail location in Toronto under the Montblanc brand. Birks was founded in 1879 and has become Canada's premier designer and retailer of fine jewelry, timepieces and gifts. Additional information can be found on Birks' web site, www.birks.com.
NON-GAAP MEASURES
The Company reports financial information in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). The Company's performance is monitored and evaluated using various sales and earnings measures that are adjusted to include or exclude amounts from the most directly comparable GAAP measure ("non-GAAP measures"). The Company presents such non-GAAP measures in reporting its financial results to assist in business decision-making and to provide key performance information to senior management. The Company believes that this additional information provided to investors and other external stakeholders will allow them to evaluate the Company's operating results using the same financial measures and metrics used by the Company in evaluating performance. The Company does not, nor does it suggest that investors and other external stakeholders should, consider non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP. These non-GAAP measures may not be comparable to similarly titled measures presented by other companies. In addition to our results determined in accordance with U.S. GAAP, we use non-GAAP measures including "EBITDA" and "Adjusted EBITDA".
EBITDA
"EBITDA" is defined as net income (loss) before interest expense and other financing costs, income taxes expense (recovery) and depreciation and amortization.
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