Birks Group Inc. (NYSE American: BGI) reported financial results for the twenty-six-week period ended September 27, 2025, highlighting a strong first half supported by its acquisition of European Boutique’s luxury timepiece and jewellery retail business and continued momentum across key product categories.
All figures are reported in Canadian dollars.
Sales growth led by acquisition and watch demand
For the first half of Fiscal 2026, Birks Group reported net sales of $93.1 million, an increase of $13.0 million or 16.2% compared with the same period last year. Comparable store sales rose 6.3% year over year, reflecting broad-based strength across categories and stronger average transaction values.
The company said the increase in sales was driven by the integration of the European Boutique business alongside increased demand for third-party branded timepieces, Birks-branded jewellery, and third-party branded jewellery. In addition to higher store traffic and product strength, growth was supported by an increase in units sold and higher average sales per transaction.
Gross profit holds steady near 39%
Birks Group reported gross profit of $36.5 million, up $5.2 million or 16.7% versus the prior-year period. Gross profit as a percentage of sales was 39.2%, essentially flat compared with 39.0% in the first half of Fiscal 2025.
The slight improvement in margin was helped by foreign exchange dynamics, including a $0.8 million gain, compared with a loss in the prior-year period, partially offset by product mix and higher packaging, reserves, and other costs.
SG&A reflects integration and leadership transition
Selling, general and administrative expenses totalled $33.0 million, or 35.4% of net sales, compared with $27.8 million or 34.7% last year. The year-over-year increase reflects the addition of European Boutique operations, higher compensation costs tied to increased headcount and sales volume, and higher occupancy costs from additional stores.
The company also cited transaction costs related to the European acquisition and severance costs primarily linked to the CEO transition. These increases were partially offset by lower marketing expenses due to cost-saving measures.
EBITDA improves modestly; net loss narrows
Birks Group’s EBITDA for the period was $4.8 million, compared with $4.7 million a year earlier. The company posted an operating loss of $0.2 million, slightly improved from $0.3 million in the prior-year period.
Net loss for the first half of Fiscal 2026 was $2.6 million, or ($0.13) per share, compared with a net loss of $3.1 million, or ($0.16) per share, in the comparable period last year.
Leadership comments
Executive Chairman and Interim CEO Niccolò Rossi di Montelera attributed the performance to both the European Boutique acquisition and strong retail execution across branded and third-party assortments. He also acknowledged the role of employees in the successful integration of newly acquired stores and the company’s continued focus on customers.
Store footprint and banner mix
Birks Group remains one of Canada’s most prominent luxury jewellery and watch retailers, operating Maison Birks locations across major metropolitan markets alongside a portfolio of brand-specific boutiques. The company’s network includes stores under banners such as Birks, TimeVallée, Brinkhaus, Graff, Patek Philippe, Breitling, Omega, Montblanc, and European Boutique, reinforcing its strategy of combining house-branded jewellery with strong third-party timepiece representation.
What it means for Canadian retailers
For the broader Canadian jewellery trade, Birks Group’s results underscore continued consumer appetite for prestige watch brands and the value of curated multi-brand assortments. The company’s steady gross margin performance, despite integration costs and a changing mix, also suggests disciplined inventory and pricing strategies even as luxury shoppers remain selective.
As the second half of Fiscal 2026 unfolds, the market will be watching how effectively Birks continues to leverage its expanded boutique portfolio, deepen watch-led clienteling, and translate acquisition-driven scale into sustained profitability.
