Birks Group has reported year-over-year comparable store sales growth of almost 3% for the year ended 25 March 2023.
Total net sales reached CAD163m ($124m) while gross profit hit CAD68m ($52m), marking a year-on-year decrease of CAD18.3m ($13.9m) and CAD$8.2m ($6.2m) respectively.
The fall was driven in part by the company’s investment in a joint venture with FWI to form RMBG Retail Vancouver ULC.
RMBG operates a Richard Mille boutique in Vancouver, for which historical sales were recognized at the company’s Vancouver flagship location and are now recognized through the joint venture.
The decrease in net sales derived from the accounting treatment of RMBG was partially offset by a 2.9% increase in comparable store sales fueled by the strong performance in key markets of third party branded timepieces and branded jewelry, and by an increase in average sales transaction value.
Jean-Christophe Bédos, president and CEO of Birks Group, said: “During fiscal 2023, we achieved a 2.9% growth in comparable store sales and an increase in our average sales transaction value, as our core business continued to grow despite being confronted with significant economic headwinds including ongoing inflationary pressures and a sense of uncertainty that permeated the market.
“Despite these challenges, we made progress against our strategic initiatives in fiscal 2023, and we continued to invest in our product offering and on enhancing our customer experience, as we completed the renovation of two key stores in important markets.”
Mr. Bédos further commented: “The results achieved in fiscal 2023, despite a challenging economic environment in the back half of the year, is a testament to our team’s unwavering commitment to our customers. I would like to thank our teams for their tireless efforts.
“While in the near-term we continue to run our business in an agile manner given the current economic environment, looking beyond, we remain committed to our long-term vision to generate sustainable, long-term shareholder value.”
Birks Group operates 21 stores under the Maison Birks brand in most major metropolitan markets in Canada.
