The FY2023 Holiday Period 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 jewelry, as client demand in the Canadian market remained strong for high-end luxury watches and jewelry.
The 15.3% comparable store sales increase in FY2023 over the comparable period in FY2020 was a result of two elements: an increase in both the branded jewelry and branded timepieces categories resulting from the continuous improvement in third party brand portfolio mix and client offering, and an increase in average sales transaction value across all product categories.
Mr. Jean-Christophe Bédos, President and Chief Executive Officer of Birks Group, commented: “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. I would like to thank our teams for their commitment on delivering excellent service to our customers. Furthermore, the increase of 15.3% 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.”
Comparable Store Sales
We use comparable store sales as a key performance measure for our business. Comparable store sales include stores open in the same period in both the current and prior period. We include e-commerce sales in our comparable store sales calculations. Stores enter the comparable store calculation in their thirteenth full month of operation under our ownership. Stores that have been resized or relocated are evaluated on a case-by-case basis to determine if they are functionally the same store or a new store and then are included or excluded from comparable store sales, accordingly. Comparable store sales measure the percentage change in net sales for comparable stores in a period compared to the corresponding period in the previous year. If a comparable store is not open for the entirety of both periods, comparable store sales measure the change in net sales for the portion of time that such store was open in both periods. We believe that this measure provides meaningful information on our performance and operating results. However, readers should know that this financial measure has no standardized meaning and may not be comparable to similar measures presented by other companies.
