Image source: © 2025 Krish Capital Pty.Ltd

Highlights

  • Net sales declined by CAD 7.5 million to CAD 177.8 million for fiscal 2025, a 4.0% decrease year-over-year.
  • Comparable store sales fell 3.4%, primarily due to third-party jewelry brand exits from two stores.
  • Gross margin dropped to 37.3% from 39.7% last year, impacted by lower volume and foreign exchange loss.

Birks Group Inc. (NYSE American: BGI) announced its financial results for the fiscal year ended March 29, 2025, reporting a 4.0% year-over-year decline in total net sales to CAD 177.8 million. The drop of CAD 7.5 million was attributed mainly to reduced sales in the retail channel, specifically lower third-party branded jewelry sales following the exit of a jewelry brand from two store locations. Comparable store sales declined by 3.4%, though when excluding the effect of the brand exit, comparable sales increased by 6.9%, led by demand for third-party branded timepieces.

The company reported gross profit of CAD 66.3 million, or 37.3% of net sales, down from CAD 73.6 million and 39.7% respectively in fiscal 2024. The reduction was driven by decreased sales volume and the impact of a foreign exchange loss due to a stronger U.S. dollar. The resulting 240 basis point contraction in gross margin reflected a shift in sales mix away from higher-margin branded jewelry.

Operating expenses also saw notable changes. Selling, general, and administrative (SG&A) expenses totaled CAD 59.5 million in fiscal 2025, representing 33.5% of net sales, down from CAD 65.7 million or 35.5% of net sales in the prior year. The decrease of CAD 6.2 million was largely due to lower occupancy costs from store closures and lease changes, as well as reductions in marketing and compensation expenses.

Adjusted EBITDA came in at CAD 9.2 million, a decrease from CAD 10.0 million in fiscal 2024. The company reported an operating loss of CAD 5.5 million for fiscal 2025, compared to operating income of CAD 1.2 million a year earlier, reflecting a CAD 4.6 million impairment related to delayed ERP implementation. Net loss widened to CAD 12.8 million, or CAD 0.66 per share, compared to a net loss of CAD 4.6 million, or CAD 0.24 per share, in the prior year.

Interest and financing costs increased to CAD 9.7 million from CAD 8.0 million, driven by higher average borrowings and a CAD 1.0 million foreign exchange loss on U.S. dollar denominated debt. The company operates 17 Maison Birks stores across Canada and several other branded retail locations under names such as TimeVallée, Patek Philippe, and Breitling.