Birks Group announced on Thursday net revenues for the fiscal year 2023 fell to $163 million, down 10.1{90af24ee0c8b2ef579cdad993725641a0bcc8b6dba22687e081e6e20320a17a5} on last year, on the back of a lacklustre performance in the jeweler’s retail channel
The Canada-based company said comparable store sales increased by 2.9{90af24ee0c8b2ef579cdad993725641a0bcc8b6dba22687e081e6e20320a17a5}, as both the branded jewelry and branded timepieces categories saw increase, with such product categories benefitting from the company’s improving third party brand portfolio and client offering.
Furthermore, comparable store sales lifted on an increase in average sales transaction value, partially offset by a slight decrease in volume. The company swung to a net loss of $7.4 million for the year, compared to a net profit of $1.3 million last year.
“During fiscal 2023, we achieved a 2.9{90af24ee0c8b2ef579cdad993725641a0bcc8b6dba22687e081e6e20320a17a5} 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,” said Jean-Christophe Bédos, president and Chief Executive Officer of Birks Group.
“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.”
In April, 2021, Birks entered into a joint venture with FWI to form RMBG. RMBG operates a boutique in Vancouver, retailing third party branded watches. The company and FWI both contributed certain assets for a 49{90af24ee0c8b2ef579cdad993725641a0bcc8b6dba22687e081e6e20320a17a5} and 51{90af24ee0c8b2ef579cdad993725641a0bcc8b6dba22687e081e6e20320a17a5} equity interest, respectively in RMBG.
During the 2023 fiscal year, the joint venture became operational and sales of which were previously recognised at the company’s Vancouver flagship location and are now counted through the RMBG joint venture.
Maison Birks, Toroto
