Birks sales jump 24% in the first-half fiscal 2020
Nov 22, 2019
In the midst of a five-year strategic plan, Canadian luxury jewelry retailer Birks Group is starting to benefit from its significant investments, reporting on Thursday a 24 percent sales increase for the first-half of fiscal 2020.
The Montreal-based company reported net sales of $85.3 million, up by $16.6 million, compared to net sales of $68.7 million, reported during the same period last year.
The increase was primarily driven by the company’s retail business, as the company starts to benefit from the significant investments it has made in its retail network over the past two fiscal years.
Sales were driven by a 12.2 percent increase in comparable store sales and by the incremental sales from its flagship stores and other key locations following their recent renovations.
"As part of the company's strategic plan, fiscal year 2020 was poised to reap the benefits of the company's investments in its flagship stores in Montreal, Toronto and Vancouver, and other key locations, as well as its cost reduction initiatives during its transformational fiscal years 2018 and 2019,” said Jean-Christophe Bédos, president and CEO of Birks Group, in a news statement.
The company's flagship stores were completed in Montreal in June 2018, in Vancouver in February 2019 and in Toronto in March 2019.
Birks brand development has also helped the company grow key performance indicators, while its improved portfolio resulted in an increase in sales of third party branded watches during the period.
For the twenty-six-week period ended September 28, the company narrowed its losses, recording a loss from continuing operations of $4.5 million; a vast improvement on the loss of $10.4 million for the same period last year.
Looking ahead, Bédos said that the company will continue to focus on the execution of its strategic plan and its four key initiatives including expanding its e-commerce and wholesale channels, renewing the Birks bridal and fine jewelry product offerings and more.
Birks currently operates 26 stores under the Birks brand in Canada, one retail location in Calgary under the Brinkhaus brand and two retail locations in Vancouver under the Graff and Patek Philippe brands.
Earlier this month, Birks appointed Lanita Layton as its vice president and chief omni-channel sales and marketing officer.
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