Birks Group Posts 7.3% Increase in Net Sales in Fiscal 2015

(IDEX Online News) – Birks Group has announced strong financial results in Fiscal 2015, highlighted by a $20.5 million or 7.3-percent increase compared to Fiscal 2014.

Net sales rose from $281.2 million the previous year to $301.6 million in Fiscal 2015, despite a weakening Canadian dollar, which impacted the company by $11.1 million after Canadian sales were translated into US dollars.

However, the net sales increase is primarily attributable to a 16-percent increase in comparable store sales (12 percent in Canada and 19 percent in the US) and $3.4 million of higher sales after the opening of three new stores.

The increases in comparable store sales was reflected in both Canada and the US by a higher average sale transaction, driven in Canada by the fine jewelry business and higher timepiece sales and in the US by the company’s timepiece strategy.

Gross profit increased $3.1 million to $117.8 million or 39.1 percent of net sales due to a higher sales volume, as compared to $114.7 million, or 40.8 percent of net sales, in Fiscal 2014, which was helped by a reduction from $105.5 million to $103.7 million in selling, general and administrative expenses.

Profits were partially offset by an $11.4-million decrease in sales through the closure of nine stores since 2013 and the temporary closure of two stores for relocation during Fiscal 2015, coupled with a $1.9 million reduction in revenues related to non-retail activities.

Birks’ president and CEO Jean-Christophe Bédos was bullish about the company’s current performance and the operational restructuring, which he said t should lead to increasingly improved performance into 2016 and beyond.