Birks Sales Sink as Transition Continues

RAPAPORT… Shares in Birks Group tumbled 26% in the past two weeks after the jeweler reported a 10% drop in same-store sales during the fiscal half-year that ended September 23.

“The major renovations at our two flagship locations in Montreal and Toronto, coupled with a soft Canadian retail environment, affected our results for the first half of the year,” said CEO Jean-Christophe Bédos.

The renovations are part of a strategy to introduce a new store concept and improve its omni-channel platform across Birks’ 28 stores in Canada. Management is also aiming to expand the Birks branded products globally, after streamlining the business with the sale of its Mayors subsidiary in October. The $107.7 million sale enabled Birks to reduce its debt and focus on that growth strategy, Bédos explained.

“Our omni-channel approach, as well as our creative marketing campaigns will allow us to achieve the company’s sales growth and profitability objectives as well as long-term shareholder value,” he added.

Group sales, excluding from discontinued Mayors operations, dropped 9% to $49.8 million, Birks reported on November 16. The company’s net loss — taking into account discontinued operations — rose to $4.3 million from $2 million last year.