Birks sales fall 5% in H1
Canadian luxury jewelry retailer Birks Group announced on Wednesday a net sales drop of 5% in the first half of 2023.
For the twenty-six week period ended September 24, 2022, the Montreal-based company reported net sales of $80 million compared to $84.6 million, reported during the same period last year.
The decrease was primarily driven by the company’s retail sales, which were $3.9 million lower than the comparable prior year period. Still, the decrease was partially offset by an 8.2% increase in comparable store sales, in part due to the reduced impact of Covid-19.
The increase was experienced across all product categories, with branded jewelry and branded timepiece products benefitting from the company's improved third party brand portfolio and client offering. The company also attributed the uptick in comparable store sales to the performance of the Birks fine jewelry and bridal collections.
Birks recorded a net loss for the twenty-six week period of $2 million, or $0.11 per share, compared to $1 million, or $0.05 per share, for the prior-year period.
"We are pleased with our performance in the first half of fiscal 2023 when we consider comparable store sales growth of 8.2% and a continued improvement in our gross margins, which speaks to the strength of our product offerings, both in terms of our Birks products and in terms of our third party branded watches and jewellery, as well as to the loyalty of our customer base,” said Jean-Christophe Bédos, president and chief executive officer of Birks Group.
"These results were achieved despite uncertain macroeconomic conditions. It is thanks to our team's continuous dedication to our customers that we were able to achieve these results. I believe that our Company is in a strong position to achieve its long-term strategic objectives as we continue to run our business in an agile manner in the near-term, with a clear view and focus on long-term growth.”
Early this month, Birks teamed up with luxury fashion house Balmain to launch a fine jewellery collection designed by creative director Olivier Rousteing.
The company currently operates 23 stores under the Maison Birks brand in most major metropolitan markets in Canada, one retail location in Calgary under the Brinkhaus brand, one retail location in Vancouver operated under the Graff brand and one location in Vancouver under the Patek Philippe brand.
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