Published
Nov 19, 2016
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Birks Group reports a decrease in net sales

Published
Nov 19, 2016

Canadian jewelry retailer Birks Group Inc has reported a decrease in net sales from the prior year, for the twenty-six week period ended September 24, 2016.
 
Though comparable store sales in the U.S increased by 6 percent, there was a decline of 11 percent in Canadian comparable store sales on a constant exchange rate basis.
 
“Despite unfavorable economic conditions and the lower than expected sales in Canada, we had a good sales performance in the United States where we outperformed many of our competitors,” notes Jean-Christophe Bédos, President and Chief Executive Officer of Birks Group, in a news statement.

Birks Group reports a decrease in net sales. - facebook.com/MaisonBirks

 
Still, net sales for the twenty-six week period declined by $4.3 million or 3 percent to $129.7 million, compared to the same period last year. The company says the decline in net sales was mainly due to the decrease in comparable store sales driven by unfavorable economic conditions in Canada, and lower spending by Chinese and other foreign tourists.
 
Meanwhile, gross profit was also down at $49.5 million, or 38.2 percent of net sales, compared to $51.6 million, or 38.5 percent of net sales, during the comparable period last year.

The company incurred a net loss for the twenty-six week period of $2 million, or $0.11 per share, compared to net income of $0.8 million, or $0.05 per share, in the prior year period. Operating income for the period also decreased by $3.2 million to $2.9 million.
 
“Management continues to implement strategies to generate sales and earnings growth while reducing expenses. We believe that these initiatives will contribute to improved financial results in the second half of the fiscal year. In addition, the previously announced renovation of the Montreal flagship store in Phillips Square as part of the transformation of the historic building into a luxury hotel and restaurant will be very strategic for Birks,” adds Bédos.
 
The Montreal-based company is a leading operator of luxury jewelry stores in Canada and in the United States. Birks was founded in 1879 and operates 47 luxury jewelry stores across Canada, Florida and Georgia. 

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