MONTREAL, July 21, 2026 /CNW/ -- Birks Group Inc. (the "Company" or "Birks Group") (NYSE American: BGI), today reported its financial results for the fiscal year ended March 28, 2026.
Highlights
All figures presented herein are in Canadian dollars, unless indicated otherwise.
For the fiscal year ended March 28, 2026 ("fiscal 2026"), the Company reported net sales of $205.4 million, an increase of $27.6 million or 15.5%, compared to the fiscal year ended March 29, 2025 ("fiscal 2025"). Comparable store sales for fiscal 2026 increased by 2.6% compared to 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 Boutique Acquisition"), as well as an increase in both Birks branded jewelry and third party branded jewelry. The Company reported a gross profit of $79.2 million in fiscal 2026, compared to $66.3 million in fiscal 2025, an increase of $12.9 million, due to increased sales volume attributable in part, to the European Boutique Acquisition, an increase in sales of Birks branded jewelry and third-party branded jewelry, and a foreign exchange gain due to the weakening of the U.S. dollar. Gross profit as a percentage of sales for fiscal 2026 was 38.5%, an increase of 120 basis points from the gross profit as a percentage of sales of 37.3% for fiscal 2025 primarily as a result of the foreign exchange gain.
Mr. Niccolò Rossi di Montelera, Executive Chairman of the Board and Interim Chief Executive Officer of Birks Group, commented: "During fiscal 2026, we achieved 15.5% growth in net sales and a 2.6% growth in comparable store sales. Our retail performance has outperformed over the prior year due to the strategic acquisition of European Boutique along with organic growth, particularly with our Birks branded jewelry. We continue to focus on generating profitable growth in our Birks brand, including a new Birks mono-brand store which is planned to open in the fall of 2026 in Vancouver's newly developed Oakridge mall."
Mr. Rossi di Montelera further commented: "I am particularly pleased with the successful integration of the European Boutique Acquisition, our recent refinancing of our term loan with Gordon Brothers and the amendment and extension of our revolver facility with Wells Fargo Canada Corporation, as well as the performance of our Birks branded jewelry business. These achievements would not have been possible without the unwavering commitment and dedication of our employees."
Financial overview for the fiscal year ended March 28, 2026:
-- Total net sales for fiscal 2026 were $205.4 million compared to $177.8
million in fiscal 2025, an increase of $27.6 million, or 15.5%. The
increase in net sales in fiscal 2026 was primarily driven by the results
of the Company's retail channel. Net retail sales in fiscal 2026 were
$27.2 million higher than fiscal 2025, an increase attributable in part,
to the European Boutique Acquisition, and an increase in sales of Birks
branded jewelry and third-party branded jewelry, partially offset by a
decrease in third-party branded timepiece sales due to a brand exit in
one retail store.
-- Comparable store sales increased by 2.6% in fiscal 2026 compared to
fiscal 2025 mainly due to higher sales in Birks branded jewelry, an
increase in average sales transaction value, and an increase in sales of
third-party branded jewelry, partially offset by lower sales in
third-party branded timepieces mainly due to a brand exit in one retail
store.
-- Total gross profit for fiscal 2026 was $79.2 million, or 38.5% of net
sales, compared to $66.3 million, or 37.3% of net sales, in fiscal 2025.
This increase of $12.9 million in gross profit was primarily due to
increased sales volume attributable in part, to the European Boutique
Acquisition, an increase in sales of Birks branded jewelry and
third-party branded jewelry, and a foreign exchange gain due to the
weakening of the U.S. dollar, partially offset by a decrease in
third-party branded timepiece sales mainly due to a brand exit in one
retail store and the sales mix. The increase of 120 basis points in gross
margin percentage resulted primarily from the foreign exchange gain.
-- SG&A expenses in fiscal 2026 were $68.5 million, or 33.4% of net sales,
compared to $59.5 million, or 33.5% of net sales in fiscal 2025, an
increase of $9.0 million. The primary driver of the increase in SG&A
expenses was mainly due to the European Boutique Acquisition. Other
factors that contributed to the increase in SG&A expenses include (i) an
increase in occupancy costs of $2.8 million ($2.7 million of the increase
related to European Boutique's operations), (ii) an increase in
compensation costs of $3.4 million mainly due to higher sales volume
($2.4 million of the increase related to European Boutique's operations)
as well as severance costs of approximately $0.9 million primarily
related to the CEO transition, (iii) an increase in credit card fees of
$1.2 million due to higher sales volume ($0.6 million of the increase
related to European Boutique's operations), and (iv) an increase in
professional fees of $1.6 million mainly due to transaction costs of $0.4
million related to the European Boutique Acquisition and an increase in
consulting fees ($0.2 million of the increase related to European
Boutique's operations). These increases were partially offset by a
decrease in general expenses of $0.1 million (includes $0.1 million of
additional costs related to European Boutique's operations), as well as a
decrease in marketing costs of $0.1 million (includes $0.3 million of
marketing costs related to European Boutique's operations) as a result of
overall cost-saving measures, including reduced spending on events and
campaigns, and by lower non-cash stock-based compensation expense ($0.2
million) mainly due to fluctuations in the Company's stock price during
fiscal 2026. As a percentage of sales, SG&A expenses in fiscal 2026
decreased by 10 basis points as compared to fiscal 2025. We intend to
continue to look for cost containment initiatives and saving
opportunities when feasible.
-- Adjusted EBITDA(1) for fiscal 2026 was $12.9 million, an increase of $3.7
million, compared to adjusted EBITDA(1) of $9.2 million for fiscal 2025.
-- Operating income for fiscal 2026 was $3.1 million, an increase of $8.6
million, compared to a reported operating loss of $5.5 million for fiscal
2025.
-- Interest and other financing costs were $8.8 million in fiscal 2026, a
decrease of $0.9 million, compared to interest and other financing costs
of $9.7 million in fiscal 2025. This decrease is mainly driven by a
foreign exchange gain of $1.1 million in fiscal 2026 versus a foreign
exchange loss of $1.0 million in fiscal 2025 on our U.S.
dollar-denominated debt relating to the weakening of the U.S. dollar
compared to the Canadian dollar, partially offset by an increase in the
average amount outstanding on the amended credit facility and the
increase in the amended term loan in connection with the European
Boutique Acquisition during fiscal 2026 compared to fiscal 2025.
-- The Company recognized a net loss for fiscal 2026 of $3.4 million, or
$0.17 per share, compared to a net loss for fiscal 2025 of $12.8 million,
or $0.66 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 currently operates 32 store locations, including: 17 store locations 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 Patek Philippe brand, one retail location in Vancouver under the Chaumet brand, four retail locations in Laval, Ottawa and Toronto under the Breitling brand, one retail location in Toronto under the Omega brand, one retail location in Toronto under the Montblanc brand, and four retail locations in the Greater Toronto Area under the European Boutique 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' website, www.birksgroup.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
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