STOCK TITAN
The best stock market news and trading tools all in one place—your must-have platform for investing success.
A must-have platform for stock market information, offering the best tools and updates to supercharge your trading.
Your trusted source for the best stock market news, trading tools, and expert advice. Everything traders need, in one place.

Birks Group Inc. Reports Mid-year Fiscal 2025 Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

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.

Positive
  • 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
Negative
  • 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 $80.1 million in net sales, marking a significant 8.8% decline year-over-year. The 4.9% drop in comparable store sales, primarily due to a brand exit, masks underlying strength in timepiece sales. While the 7.5% comparable store sales growth excluding the brand exit is positive, the broader financial picture shows deterioration.

The gross profit margin compression of 210 basis points to 39.0% and increased net loss of $3.1 million ($0.16 per share) from $1.5 million last year are red flags. Despite reduced SG&A expenses by $4.7 million, the cost-cutting hasn't offset revenue decline. The shift from operating income of $0.5 million to an operating loss of $0.3 million indicates fundamental challenges beyond the brand exit impact.

MONTREAL--(BUSINESS WIRE)-- Birks Group Inc. (the “Company” or “Birks Group”) (NYSE American: BGI), today reported its financial results for the twenty-six-week period ended September 28, 2024.

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 $80.1 million, a decrease of $7.7 million or 8.8% from the comparable prior period ended September 23, 2023 (“Fiscal 2024”). Comparable store sales for the twenty-six-week period ended September 28, 2024, decreased by 4.9% compared to the corresponding period of Fiscal 2024. The decrease in net sales and comparable store sales is mainly due to lower sales of branded jewelry due to the exit of a brand from two stores. When excluding the third-party jewelry brand movement, the comparable store sales increased by 7.5%, mainly driven by timepiece sales. The Company reported a gross profit of $31.3 million, a decrease of $4.8 million or 13.3% compared to the corresponding period in Fiscal 2024, due to lower sales volume resulting from the exit of a jewelry brand from two stores. Gross profit as a percentage of sales was 39.0% for the twenty-six week period ended September 28, 2024, a decrease of 210 basis points from the gross profit as a percentage of sales of 41.1% in the twenty-six-week period ended September 23, 2023.

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 Laval stores as they continue to generate greater sales post opening which also contributed to our results.”

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 $80.1 million compared to $87.8 million for the twenty-six-week period ended September 23, 2023, a decrease of $7.7 million or 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 by 7.5%, mainly driven by timepiece sales.

  • Total gross profit was $31.3 million, or 39.0% of net sales, for the twenty-six-week period ended September 28, 2024, compared to $36.1 million, or 41.1% of net sales for the twenty-six-week period ended September 23, 2023. This decrease of $4.8 million 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 $0.2 million from the comparable period in Fiscal 2024, partially offset by a favorable product mix in branded timepieces.

  • SG&A expenses in the twenty-six-week period ended September 28, 2024 were $27.8 million, or 34.7% of net sales, compared to $32.5 million, or 37.0% of net sales in the twenty-six-week period ended September 23, 2023, a decrease of $4.7 million. The main drivers of the decrease in SG&A expenses in the period include lower marketing costs ($1.5 million) mainly due to lower brand development initiatives, lower occupancy costs ($2.1 million) due to store closures and store lease modifications, lower compensation costs ($0.3 million) due to lower sales volume and head count reduction, lower credit card fees ($0.3 million) and lower delivery and transport costs ($0.1 million) due to lower sales volume and a decrease in general and variable operating costs ($0.8 million). This decrease was partially offset by greater stock-based compensation ($0.4 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 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 $3.1 million, or ($0.16) per share, compared to a net loss for the twenty-six-week period ended September 23, 2023 of $1.5 million, or ($0.08) per share.

  • The Company’s EBITDA (1) for the twenty-six-week period ended September 28, 2024 was $4.7 million, a decrease of $0.3 million, compared to EBITDA(1) of $5.0 million for the twenty-six-week period ended September 23, 2023; and

  • The Company reported an operating loss of $0.3 million for the twenty-six-week period ended September 28, 2024, a decrease of $0.8 million, compared to a reported operating income of $0.5 million in the twenty-six-week period ended September 23, 2023.
 

(1)

This is a non-GAAP financial measure defined below under “Non-GAAP Measures” and accompanied by a reconciliation to the most directly comparable U.S. 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 18 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 operated under the Graff brand, one location in Vancouver under the Patek Philippe brand, and three retail locations in Laval, Ottawa and Toronto under the Breitling brand. Birks fine jewelry collections are also available through select SAKS Fifth Avenue stores in Canada and the U.S., select Mappin & Webb and Goldsmiths locations in the United Kingdom, in Mayors stores in the United States, in W. Kruk stores in Poland as well as several jewelry retailers across North America. Birks was founded in 1879 and has become Canada’s premier retailer and designer 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 measures (“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“.

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 (U.S. GAAP measure)

 

(3,081)

 

(1,482)

 

as a % of net sales

 

-3.8%

 

-1.7%

 

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

 

5.8%

 

5.6%

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 Canada and the U.S., and the influence of inflation on consumer spending, which could adversely affect the Company’s business, operating results or financial condition, including its revenue and profitability, through the impact of changes in the real estate markets, changes in the equity markets and decreases in consumer confidence and the related changes in consumer spending patterns, the impact on store traffic, tourism and sales; (iii) the impact of fluctuations in foreign exchange rates, increases in commodity prices and borrowing costs and their related impact on the Company’s costs and expenses; (iv) the Company’s ability to maintain and obtain sufficient sources of liquidity to fund its operations, to achieve planned sales, gross margin and net income, to keep costs low, to implement its business strategy, maintain relationships with its primary vendors, to source raw materials, to mitigate fluctuations in the availability and prices of the Company’s merchandise, to compete with other jewelers, to succeed in its marketing initiatives (including with respect to Birks branded products), and to have a successful customer service program; (v) the Company’s plan 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 e-commerce platform; (vi) the Company’s ability to execute its strategic vision; (vii) the Company’s ability to invest in and finance capital expenditures, and (viii) the Company’s ability to maintain its listing on the NYSE American or to list its securities on another national securities exchange.

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

 

 

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?

Birks Group reported net sales of $80.1 million for the 26-week period ended September 28, 2024, representing an 8.8% decrease from the same period last year.

How did BGI's comparable store sales perform in the first half of fiscal 2025?

Comparable store sales decreased by 4.9%, but when excluding the third-party jewelry brand exit, comparable store sales increased by 7.5%, mainly driven by timepiece sales.

What was Birks Group's (BGI) net loss for the first half of fiscal 2025?

Birks Group reported a net loss of $3.1 million, or $0.16 per share, compared to a net loss of $1.5 million, or $0.08 per share, in the same period last year.

Birks Group Inc

NYSE:BGI

BGI Rankings

BGI Latest News

BGI Stock Data

30.31M
2.69M
76.66%
2.94%
0.07%
Luxury Goods
Consumer Cyclical
Link
United States of America
Montreal