Sales at Canada-based jeweler Birks Group slid 10% for the full fiscal year due to a reorganization of its Vancouver retail business and the impact of inflation.
Revenue decreased to CAD 163 million ($124.1 million) in the 12 months ending March 25, the company reported last week. Comparable-store sales — at branches open for more than a year — rose 2.9%.
Comparable-store sales benefited from demand for branded jewelry and timepieces as well as an increase in the average transaction value, the company explained. That partially offset the drop stemming from economic uncertainty and inflation.
During the period, Birks invested in a joint venture with FWI to form RMBG Retail Vancouver, which operates a Richard Mille boutique in Vancouver. Sales that Birks previously attributed to its Vancouver flagship store now count as being part of RMBG, Birks noted.
“During fiscal 2023, we achieved…growth in comparable-store sales and an increase in our average sales transaction value…despite being confronted with significant economic headwinds including ongoing inflationary pressures and a sense of uncertainty that permeated the market,” said Birks CEO Jean-Christophe Bédos.
The drop in discretionary spending had a particular impact on e-commerce, which largely caters to low- and mid-price-point consumers, the company added.
The company recorded a net loss of CAD 7.4 ($5.7 million) million for the year, compared to a profit of CAD 1.3 million ($979,676) the previous year.
Image: A Birks store in Canada. (Birks Group)