MONTREAL–(BUSINESS WIRE)–Birks Group Inc. (the “Firm” or “Birks Group”) (NYSE American: BGI), reported its gross sales outcomes for the 9 week interim gross sales interval ending January 1, 2023 (the “FY2023 Vacation Interval”) leading to a lower of three.2% in comparable retailer gross sales versus the exceptional FY2022 Vacation Interval, throughout which the Firm had recorded exceptional development of 18.4% in comparable retailer gross sales. The FY2023 Vacation Interval gross sales efficiency is equal to a rise in comparable retailer gross sales of 15.3% to the FY2020 Vacation Interval, the newest pre-COVID comparable interval.
The FY2023 Vacation Interval gross sales efficiency was impacted by softer November outcomes which we attribute to shopper prudence, as prospects delayed purchases amidst an unsure macroeconomic background. This was partially offset by stable December outcomes because the Firm delivered development in comparable retailer gross sales through the month, fueled by the efficiency of its Flagship shops. The December outcomes have been largely derived from the optimistic efficiency of branded timepieces and branded jewellery, as consumer demand within the Canadian market remained robust for high-end luxurious watches and jewellery.
The 15.3% comparable retailer gross sales improve in FY2023 over the comparable interval in FY2020 was a results of two parts: a rise in each the branded jewellery and branded timepieces classes ensuing from the continual enchancment in third get together model portfolio combine and consumer choices, and an Improve in common gross sales transaction worth throughout all product classes.
Mr. Jean-Christophe Bédos, President and Chief Government Officer of Birks Group, commented: “Our gross sales groups have delivered optimistic outcomes this vacation interval when contemplating the present macroeconomic atmosphere, together with comparable retailer gross sales development within the month of December. I want to thank our groups for his or her dedication on delivering wonderful service to our prospects. Moreover, the rise of 15.3% in comparable retailer gross sales vs. FY2020, is a crucial achievement that demonstrates the continued success of our long-term methods, on which we stay targeted as we proceed to place ourselves for long-term success.”
Comparable Retailer Gross sales
We use comparable retailer gross sales as a key efficiency measure for our enterprise. Comparable retailer gross sales embrace shops open in the identical interval in each the present and prior interval. We embrace e-commerce gross sales in our comparable retailer gross sales calculations. Shops enter the comparable retailer calculation of their thirteenth full month of operation below our possession. Shops which have been resized or relocated are evaluated on a case-by-case foundation to find out if they’re functionally the identical retailer or a brand new retailer after which are included or excluded from comparable retailer gross sales, accordingly. Comparable retailer gross sales measure the proportion change in web gross sales for comparable shops in a interval in comparison with the corresponding interval within the earlier 12 months. If a comparable retailer is just not open for everything of each intervals, comparable retailer gross sales measure the change in web gross sales for the portion of time that such retailer was open in each intervals. We imagine that this measure gives significant info on our efficiency and working outcomes. Nonetheless, readers ought to know that this monetary measure has no standardized which means and will not be corresponding to comparable measures offered by different firms.
About Birks Group Inc.
Birks Group is a number one designer of high-quality jewelry, timepieces and items and operator of luxurious jewelery shops in Canada. The Firm operates 23 shops below the Maison Birks model in most main metropolitan markets in Canada, one retail location in Calgary below the Brinkhaus model, one retail location in Vancouver operated below the Graff model and one retail location in Vancouver below the Patek Philippe model. The Birks model high-quality jewelery collections are additionally out there by means of choose SAKS Fifth Avenue shops in Canada and the US, choose Mappin & Webb and Goldsmiths places in the UK, in Mayors shops in america, in W. Kruk shops in Poland in addition to a number of jewelery retailers throughout North America and Europe. Birks was based in 1879 and has change into Canada’s premier retailer and designer of high-quality jewelry, timepieces and items. Extra info might be discovered on Birks’ website online, www.birks.com.
Ahead Wanting Statements
This press launch comprises forward-looking statements which might be recognized by their use of phrases like “plans,” “expects,” “believes,” “will,” “anticipates,” “intends,” “tasks,” “estimates,” “might,” “would,” “might,” “deliberate,” “objective,” and different phrases of comparable which means. All statements that tackle expectations, potentialities or projections concerning the future, together with with out limitation, statements about anticipated financial circumstances, and our methods for development, efficiency drivers, enlargement plans, sources or adequacy of capital, expenditures and monetary outcomes are forward-looking statements .
As a result of such statements embrace varied dangers and uncertainties, precise outcomes would possibly differ materially from these projected within the forward-looking statements and no assurance might be on condition that the Firm will meet the outcomes projected within the forward-looking statements. These dangers and uncertainties embrace, however will not be restricted to the next: (i) the magnitude and size of financial disruption on account of the worldwide COVID-19 outbreak, together with its affect on macroeconomic circumstances, usually, in addition to its affect on the outcomes of operations and monetary situation of the Firm and the buying and selling worth of the shares; (ii) basic financial, political and market circumstances, together with the economies of Canada and the US, which might adversely have an effect on our enterprise, working outcomes or monetary situation, together with our income and profitability, by means of the affect of modifications in the actual property markets, modifications within the fairness markets and reduces in shopper confidence and the associated modifications in shopper spending patterns, the affect on retailer site visitors, tourism and gross sales; (iii) the affect of fluctuations in international change charges, inflation, will increase in commodity costs and borrowing or working prices, or different pricing atmosphere components and their associated affect on the Firm’s prices and bills; (iv) modifications in rates of interest; (v) the Firm’s means to keep up and acquire ample sources of liquidity to fund its operations, to attain deliberate gross sales, gross margin and web earnings, to maintain prices low, to implement its enterprise technique, keep relationships with its major distributors, to mitigate fluctuations within the availability and costs of the Firm’s merchandise, to compete with different jewelers, to reach its advertising and marketing initiatives, and to have a profitable customer support program; (vi) the Firm’s means to proceed to borrow below the Amended Credit score Facility and Amended Time period Mortgage; (vii) the Firm’s means to keep up worthwhile operations, in addition to keep specified extra availability ranges below the Amended Credit score Facility, make scheduled funds of principal and curiosity, and fund capital expenditures; (viii) the Firm’s means to execute its strategic imaginative and prescient; (ix) the geopolitical atmosphere and elevated political uncertainty; (x) the affect of weather-related incidents, pure disasters, strikes, protests, riots or terrorism, acts of struggle or one other public well being disaster or illness outbreak, epidemic or pandemic on the Firm’s enterprise; and (x) the Firm’s means to proceed as a going concern.
Info regarding components that would trigger precise outcomes to vary materially is about forth below the captions “Threat Components” and “Working and Monetary Evaluation and Prospects” and elsewhere within the Firm’s Annual Report on Kind 20-F filed with the Securities and Change Fee on June 24, 2022 and subsequent filings with the Securities and Change Fee. The Firm undertakes no obligation to replace or launch any revisions to those forward-looking statements to mirror occasions or circumstances after the date of this assertion or to mirror the incidence of surprising occasions, besides as required by regulation.