Birks net holiday sales down 4%

Canadian luxury jewelry retailer Birks reported on Friday a 4 percent decline in holiday season sales, due to two flagship stores currently undergoing major renovations that were excluded.

Still, comparable store sales increased by 2 percent for the period from November 3, 2017 through December 30, 2017 thanks to increased sales of Birks-branded products, and strong e-commerce sales.

“While we continued to battle a soft retail environment in Canada, we managed to leverage our marketing campaigns, the performance of Birks-branded products and our ongoing dedication to enhancing customer experience,” explained Jean-Christophe Bédos, President and CEO of Birks Group, in a news statement.

The first half of Birks 2018 fiscal year was a busy one and included the sale of its subsidiary, Mayor's Jewelers, Inc. ("Mayors"), to Aurum Holdings Ltd. ("Aurum").

The deal valued at approximately $104.6 million, also included a 5-year distribution agreement with Aurum to sell Birks fine jewelry in the U.K. at Mappin & Webb, Goldsmiths stores and on their e-commerce sites.

Birks, in addition, opened and repositioned five stores to reflect Birks' latest store concept. Still, it is unclear whether the retailer will end the year with positive store sales.

For the twenty-six week period ended September 23, 2017, Birks reported a $5.1 million decline in net sales with sales of $49.8 million, compared to $54.9 million reported during the same period last year.

“As we enter the final quarter of our fiscal year, we will maintain our focus on our short-term and long-term growth strategies, namely the renovation of our flagship stores, the global expansion of the Birks product brand and the development of our e-commerce and wholesale businesses; the execution of which will contribute to long-term sales and profitability growth,” added Bédos.

Gross profit was $108.4 million, for fiscal 2017, compared to $109.4 million, while net income fell from $5.4 million to $4.9 million, due to $0.8 million of restructuring charges cumulated during the year.

The Montreal-based company, founded in 1879, currently operates 28 stores under the Birks brand in most major metropolitan markets in Canada and two retail locations in Calgary and Vancouver under the Brinkhaus brand.

Birks net holiday sales down 4%

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