Birks yearly income jumps despite sales dip

Canadian luxury jewelry retailer Birks reported on Tuesday an increase in net income, despite a sales dip for fiscal 2018.

The Montreal-based company reported net sales of $114.4 million, down $2 million, compared to $116.4 million in fiscal 2017.

On a constant exchange rate basis, the decrease in net sales was reflective of a 4 percent decline in comparable store sales primarily driven by soft luxury retail conditions across Canada, as well as the company’s strategic plan, which included renovating two of its three flagship stores.

Still, net income was up at $11.7 million, or $0.65 per share, for fiscal 2018, compared to a net income of $4.9 million, or $0.27 per share for the fiscal year ended March 25, 2017.

"Our fiscal 2018 results are reflective of the major transformative changes undertaken by the Company during the fiscal year, most notably the sale of Mayors, which enabled us to substantially reduce our debt and strengthen our balance sheet,” explained Jean-Christophe Bédos, President and Chief Executive Officer of Birks Group, in a news statement.

“We have now turned our full attention to the execution of our 5-year strategic plan,” he added.

Last month, the company re-opened its Montreal flagship.

Other initiatives that are part of its 5-year plan includes renovations to its flagship locations in Toronto and Vancouver, expanding its e-commerce and wholesale channels, renewing its bridal and fine jewelry product offerings and more.

Birks yearly income jumps despite sales dip

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