Canada-based jeweler Birks Group recorded a loss for the full fiscal year amid the exit of one of its jewelry brands and an impairment on some of its assets.
The company posted a loss of CAD 12.8 million ($9.3 million) for the 12 months that ended March 29, it said last week. That compares to the CAD 4.6 million ($3.3 million) loss the company reported in fiscal 2024.
The jeweler opened new stores under the TimeVallée and Birks brands and acquired the watch and jewelry business of European Boutique. “These initiatives… will continue to generate greater sales and contribute to improve our results,” said Birks CEO Jean-Christophe Bédos.
Sales dropped 4% to CAD 177.8 million ($129.4 million), while comparable-store sales slipped 3.4%. The exit of one of the third-party jewelry brands from two of the company’s stores largely drove the decrease. However, an improvement in the sales of branded timepieces partly offset this.
The company faced an impairment of CAD 4.6 million ($3.3 million) on some of its assets, due to a write-down of software costs. It also incurred foreign exchange losses, as it generates revenue in Canadian dollars but pays vendors in US dollars.
Image: A Birks store in Canada. (Birks Group)