Birks Group Inc. Reports Mid-year Fiscal 2025 Results
Birks Group (NYSE American: BGI) reported financial results for the 26-week period ended September 28, 2024. Net sales decreased 8.8% to $80.1 million, with comparable store sales declining 4.9%. When excluding a third-party jewelry brand exit from two stores, comparable store sales increased 7.5%, driven by timepiece sales. Gross profit decreased 13.3% to $31.3 million, with margin declining 210 basis points to 39.0%. The company reported a net loss of $3.1 million ($0.16 per share), compared to a $1.5 million loss in the prior year period. EBITDA decreased to $4.7 million from $5.0 million.
Birks Group (NYSE American: BGI) ha riportato i risultati finanziari per il periodo di 26 settimane conclusosi il 28 settembre 2024. Le vendite nette sono diminuite dell'8,8% a 80,1 milioni di dollari, con una diminuzione delle vendite nei negozi comparabili del 4,9%. Escludendo l'uscita di un marchio di gioielli di terzi da due negozi, le vendite nei negozi comparabili sono aumentate del 7,5%, trainate dalle vendite di orologi. Il profitto lordo è diminuito del 13,3% a 31,3 milioni di dollari, con un margine in calo di 210 punti base, portandosi al 39,0%. L'azienda ha riportato una perdita netta di 3,1 milioni di dollari (0,16 dollari per azione), rispetto a una perdita di 1,5 milioni di dollari nello stesso periodo dell'anno precedente. L'EBITDA è sceso a 4,7 milioni di dollari rispetto ai 5,0 milioni di dollari precedenti.
Birks Group (NYSE American: BGI) informó sobre los resultados financieros para el período de 26 semanas que finalizó el 28 de septiembre de 2024. Las ventas netas disminuyeron un 8,8% a 80,1 millones de dólares, con una caída del 4,9% en las ventas de tiendas comparables. Al excluir la salida de una marca de joyería de terceros de dos tiendas, las ventas de tiendas comparables aumentaron un 7,5%, impulsadas por las ventas de relojes. La ganancia bruta disminuyó un 13,3% a 31,3 millones de dólares, y el margen cayó 210 puntos básicos, alcanzando el 39,0%. La compañía reportó una pérdida neta de 3,1 millones de dólares (0,16 dólares por acción), en comparación con una pérdida de 1,5 millones de dólares en el mismo período del año anterior. El EBITDA disminuyó a 4,7 millones de dólares desde 5,0 millones de dólares.
Birks Group (NYSE American: BGI)는 2024년 9월 28일로 종료된 26주 기간의 재무 결과를 보고했습니다. 순판매는 8,010만 달러로 8.8% 감소했으며, 동종 매장 판매는 4.9% 감소했습니다. 두 개의 매장에서 제3자 보석 브랜드의 철수를 제외하면 동종 매장 판매가 7.5% 증가했으며 이는 시계 판매에 의해 주도되었습니다. 총 이익은 3,130만 달러로 13.3% 감소했으며, 마진은 39.0%로 210bp 감소했습니다. 회사는 310만 달러의 순손실을 보고했으며 (주당 0.16달러), 이는 전년도 동일 기간의 150만 달러 손실과 비교됩니다. EBITDA는 470만 달러에서 500만 달러로 감소했습니다.
Birks Group (NYSE American: BGI) a annoncé ses résultats financiers pour la période de 26 semaines se terminant le 28 septembre 2024. Les ventes nettes ont chuté de 8,8% à 80,1 millions de dollars, avec une diminution des ventes dans les magasins comparables de 4,9%. En excluant la sortie d'une marque de bijoux tiers de deux magasins, les ventes des magasins comparables ont augmenté de 7,5%, soutenues par les ventes de montres. Le bénéfice brut a diminué de 13,3% pour atteindre 31,3 millions de dollars, avec une marge en baisse de 210 points de base à 39,0%. La société a enregistré une perte nette de 3,1 millions de dollars (0,16 dollar par action), contre une perte de 1,5 million de dollars au cours de la période de l'année précédente. L'EBITDA a diminué à 4,7 millions de dollars contre 5,0 millions de dollars précédemment.
Birks Group (NYSE American: BGI) berichtete über die Finanzergebnisse für den 26-wöchigen Zeitraum, der am 28. September 2024 endete. Der Nettoumsatz sank um 8,8% auf 80,1 Millionen Dollar, während der Umsatz in vergleichbaren Geschäften um 4,9% zurückging. Ohne den Rückzug einer dritten Schmuckmarke aus zwei Geschäften stiegen die Umsätze in vergleichbaren Geschäften um 7,5%, was auf die Verkäufe von Uhren zurückzuführen ist. Der Bruttogewinn sank um 13,3% auf 31,3 Millionen Dollar, wobei die Marge um 210 Basispunkte auf 39,0% fiel. Das Unternehmen meldete einen Nett verlust von 3,1 Millionen Dollar (0,16 Dollar pro Aktie), verglichen mit einem Verlust von 1,5 Millionen Dollar im Vorjahreszeitraum. Das EBITDA sank von 5,0 Millionen Dollar auf 4,7 Millionen Dollar.
- 7.5% comparable store sales growth excluding the jewelry brand exit
- SG&A expenses decreased by $4.7 million due to cost reduction initiatives
- Renovated Chinook and Laval stores showing improved sales performance
- 8.8% decrease in net sales to $80.1 million
- Net loss widened to $3.1 million from $1.5 million year-over-year
- Gross profit margin declined 210 basis points to 39.0%
- EBITDA decreased to $4.7 million from $5.0 million
Insights
The mid-year results reveal concerning trends with
The gross profit margin compression of 210 basis points to
Highlights
All figures presented herein are in Canadian dollars.
For the twenty-six-week period ended September 28, 2024 (“Fiscal 2025”), the Company reported net sales of
Mr. Jean-Christophe Bédos, President and Chief Executive Officer of Birks Group, commented: “Although our net sales and comparable store sales for the first half of Fiscal 2025 are lower than the corresponding period in Fiscal 2024, when excluding the effect of the third-party jewelry brand movement, comparable store sales are positive. We are pleased with the renovation projects that were undertaken in the last year at our Chinook and
Financial overview for the twenty-six-week period ended September 28, 2024
-
Total net sales for the twenty-six-week period ended September 28, 2024 were
compared to$80.1 million for the twenty-six-week period ended September 23, 2023, a decrease of$87.8 million or$7.7 million 8.8% . This sales decrease is attributable primarily to the decrease in sales of branded jewelry related to a brand exit from two stores, offset by an increase in branded timepieces sales.
-
Comparable store sales decreased by
4.9% during the twenty-six-week period ended September 28, 2024 compared to the twenty-six-week period ended September 23, 2023. The decrease in comparable store sales is mainly attributable to a third-party jewelry brand movement. When excluding the third-party jewelry brand movement, the comparable store sales increased by7.5% , mainly driven by timepiece sales.
-
Total gross profit was
, or$31.3 million 39.0% of net sales, for the twenty-six-week period ended September 28, 2024, compared to , or$36.1 million 41.1% of net sales for the twenty-six-week period ended September 23, 2023. This decrease of in gross profit is primarily attributable to lower sales volume in the retail segment, specifically in branded jewelry, mainly due to a brand exit. The decrease in gross profit percentage of 210 basis points is due to higher packaging and service costs, an increase in foreign exchange loss of$4.8 million from the comparable period in Fiscal 2024, partially offset by a favorable product mix in branded timepieces.$0.2 million
-
SG&A expenses in the twenty-six-week period ended September 28, 2024 were
, or$27.8 million 34.7% of net sales, compared to , or$32.5 million 37.0% of net sales in the twenty-six-week period ended September 23, 2023, a decrease of . The main drivers of the decrease in SG&A expenses in the period include lower marketing costs ($4.7 million ) mainly due to lower brand development initiatives, lower occupancy costs ($1.5 million ) due to store closures and store lease modifications, lower compensation costs ($2.1 million ) due to lower sales volume and head count reduction, lower credit card fees ($0.3 million ) and lower delivery and transport costs ($0.3 million ) due to lower sales volume and a decrease in general and variable operating costs ($0.1 million ). This decrease was partially offset by greater stock-based compensation ($0.8 million ) mainly related to the fluctuation of the stock price. As a percentage of sales, SG&A expenses in the twenty-six-week period ended September 28, 2024 have decreased by$0.4 million 2.6% as compared to the twenty-six-week period ended September 23, 2023.
-
The Company recognized a net loss for the twenty-six-week period ended September 28, 2024 of
, or ($3.1 million ) per share, compared to a net loss for the twenty-six-week period ended September 23, 2023 of$0.16 , or ($1.5 million ) per share.$0.08
-
The Company’s EBITDA (1) for the twenty-six-week period ended September 28, 2024 was
, a decrease of$4.7 million , compared to EBITDA(1) of$0.3 million for the twenty-six-week period ended September 23, 2023; and$5.0 million
-
The Company reported an operating loss of
for the twenty-six-week period ended September 28, 2024, a decrease of$0.3 million , compared to a reported operating income of$0.8 million in the twenty-six-week period ended September 23, 2023.$0.5 million
(1) |
This is a non-GAAP financial measure defined below under “Non-GAAP Measures” and accompanied by a reconciliation to the most directly comparable |
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
NON-GAAP MEASURES
The Company reports financial information in accordance with
EBITDA
“EBITDA” is defined as net income (loss) from continuing operations before interest expense and other financing costs, income taxes expense (recovery) and depreciation and amortization.
EBITDA (in thousands) |
|||||
For the twenty-six-week period ended |
|||||
September 28, 2024 |
September 23, 2023 |
||||
Net (loss) income ( |
|
(3,081) |
|
(1,482) |
|
as a % of net sales |
|
- |
|
- |
|
Add the impact of: |
|||||
Interest expense and other financing costs |
|
4,034 |
|
3,350 |
|
Depreciation and amortization |
|
3,701 |
|
3.089 |
|
EBITDA (non-GAAP measure) |
$ |
4,654 |
$ |
4,957 |
|
as a % of net sales |
|
|
|
|
Forward Looking Statements
This press release contains forward- looking statements which can be identified by their use of words like “plans,” “expects,” “believes,” “will,” “anticipates,” “intends,” “projects,” “estimates,” “could,” “would,” “may,” “planned,” “goal”, “continue”, “strategy” and other words of similar meaning. All statements that address expectations, possibilities or projections about the future, including without limitation, statements about anticipated economic conditions, generation of shareholder value, and our strategies for growth, performance drivers, expansion plans, sources or adequacy of capital, expenditures and financial results are forward-looking statements.
Because such statements include various risks and uncertainties, actual results might differ materially from those projected in the forward-looking statements and no assurance can be given that the Company will meet the results projected in the forward-looking statements. These risks and uncertainties include, but are not limited to the following: (i) a decline in consumer spending or deterioration in consumer financial position; (ii) economic, political and market conditions, including the economies of
Information concerning factors that could cause actual results to differ materially is set forth under the captions “Risk Factors” and “Operating and Financial Review and Prospects” and elsewhere in the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on July 16, 2024, as amended on July 18, 2024, and subsequent filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.
BIRKS GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – UNAUDITED (In thousands, except per share amounts) |
|||||||
|
|
26 weeks ended |
26 weeks ended |
||||
|
|
September 28, 2024 |
September 23, 2023 |
||||
|
Net sales |
$ |
80,118 |
|
$ |
87,817 |
|
|
Cost of sales |
|
48,859 |
|
|
51,750 |
|
|
Gross profit |
|
31,259 |
|
|
36,067 |
|
|
Selling, general and administrative expenses |
|
27,827 |
|
|
32,483 |
|
|
Depreciation and amortization |
|
3,701 |
|
|
3,089 |
|
|
Total operating expenses |
|
31,528 |
|
|
35,572 |
|
|
Operating (loss) income |
|
(269 |
) |
|
495 |
|
|
Interest and other financial costs |
|
4,034 |
|
|
3,350 |
|
|
(Loss) before taxes and equity in earnings of joint venture |
|
(4,303 |
) |
|
(2,855 |
) |
|
Equity in for Earnings of joint venture, net of taxes |
|
1,222 |
|
|
1,373 |
|
|
Net loss |
$ |
(3,081 |
) |
$ |
(1,482 |
) |
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|
|||||
Basic |
|
19,226 |
|
|
18,953 |
|
|
Diluted |
|
19,226 |
|
|
18,953 |
|
|
Net (loss) income per common share: |
|
|
|||||
Basic |
$ |
(0.16 |
) |
$ |
(0.08 |
) |
|
Diluted |
$ |
(0.16 |
) |
$ |
(0.08 |
) |
BIRKS GROUP INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
|||||||
|
September 28, 2024 |
|
March 30, 2024 |
||||
Assets |
|
|
|
||||
Current Assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,789 |
|
|
$ |
1,783 |
|
Accounts receivable and other receivables |
|
7,004 |
|
|
|
8,455 |
|
Inventories |
|
105,605 |
|
|
|
99,067 |
|
Prepaid expenses and other current assets |
|
2,794 |
|
|
|
2,913 |
|
Total current assets |
|
117,192 |
|
|
|
112,218 |
|
Long-term receivables |
|
1,320 |
|
|
|
1,571 |
|
Equity investment in joint venture |
|
5,344 |
|
|
|
4,122 |
|
Property and equipment |
|
26,771 |
|
|
|
25,717 |
|
Operating lease right-of-use assets |
|
34,307 |
|
|
|
51,753 |
|
Intangible assets and other assets |
|
8,113 |
|
|
|
7,887 |
|
Total non-current assets |
|
75,855 |
|
|
|
91,050 |
|
Total assets |
$ |
193,047 |
|
|
$ |
203,268 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity (Deficiency) |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Bank indebtedness |
$ |
71,152 |
|
|
$ |
63,372 |
|
Accounts payable |
|
45,253 |
|
|
|
43,011 |
|
Accrued liabilities |
|
5,972 |
|
|
|
6,112 |
|
Current portion of long-term debt |
|
5,150 |
|
|
|
4,352 |
|
Current portion of operating lease liabilities |
|
8,322 |
|
|
|
6,430 |
|
Total current liabilities |
|
135,849 |
|
|
|
123,277 |
|
Long-term debt |
|
22,484 |
|
|
|
22,587 |
|
Long-term portion of operating lease liabilities |
|
38,681 |
|
|
|
59,881 |
|
Other long-term liabilities |
|
4,259 |
|
|
|
2,672 |
|
Total long-term liabilities |
|
65,424 |
|
|
|
85,140 |
|
Stockholders’ equity (deficiency): |
|||||||
Class A common stock – no par value, unlimited shares authorized, issued and outstanding 11,593,391 (11,447,999 as of March 30, 2024) |
|
41,468 |
|
|
|
40,725 |
|
Class B common stock – no par value, unlimited shares authorized, issued and outstanding 7,717,910 |
|
57,755 |
|
|
|
57,755 |
|
Preferred stock – no par value, unlimited shares authorized, none issued |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
21,082 |
|
|
|
21,825 |
|
Accumulated deficit |
|
(128,557 |
) |
|
|
(125,476 |
) |
Accumulated other comprehensive income (loss) |
|
26 |
|
|
|
22 |
|
Total stockholders’ equity (deficiency) |
|
(8,226 |
) |
|
|
(5,149 |
) |
Total liabilities and stockholders’ equity (deficiency) |
$ |
193,047 |
|
|
$ |
203,268 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241127179134/en/
Company Contacts:
Katia Fontana
Vice President and Chief Financial Officer
(514) 397-2592
For all press and media inquiries, please contact:
Press@birks.com
Source: Birks Group Inc.
FAQ
What was Birks Group (BGI) net sales for the first half of fiscal 2025?
How did BGI's comparable store sales perform in the first half of fiscal 2025?