Birks Group reports drop in holiday sales

Birks Group Inc. holiday period sales decreased 3.2 percent in comparable store sales versus the same period last year, during which the company had recorded growth of 18.4 percent in comparable store sales.

The FY2023 holiday sales performance is equivalent to an increase in comparable store sales of 15.3 percent to the FY2020 holiday period, the most recent pre-Covid comparable period.

Commenting on the trading results, Jean-Christophe Bédos, president and chief executive officer of Birks Group, said: “Our sales teams have delivered positive results this holiday period when considering the current macroeconomic environment, including comparable store sales growth in the month of December.”

“Furthermore, the increase of 15.3 percent in comparable store sales vs. FY2020, is an important achievement that demonstrates the continued success of our long-term strategies, on which we remain focused as we continue to position ourselves for long-term success,” Bédos added.

The company said in a release that the sales performance was impacted by softer November results which we attribute to consumer prudence, as customers delayed purchases amidst an uncertain macroeconomic backdrop. This was partially offset by solid December results as the company delivered growth in comparable store sales during the month, fueled by the performance of its flagship stores.

The December results were in large part derived from the positive performance of branded timepieces and branded jewellery, as client demand in the Canadian market remained strong for high-end luxury watches and jewellery.

The 15.3 percent comparable store sales increase in FY2023 over the comparable period in FY2020 was a result of an increase in both the branded jewellery and branded timepieces categories due to the continuous improvement in third party brand portfolio mix and client offering, and an increase in average sales transaction value across all product categories.