In its latest update, Birks Group Inc. (NYSE American: BGI) reported a 4.0% increase in net sales for the FY2025 Holiday Period (covering the last eight weeks of 2024) compared to the same period in FY2024 (holiday season of 2023).
With a 1.3% increase in comparable store sales, the results suggest modest but steady growth, driven primarily by strong sales of branded watches and continued e-commerce expansion. But how does this performance compare to previous years? And what does it reveal about Birks’ position in the luxury retail market?
In this article, we examine Birks Group’s holiday sales trends over the past five years, explore the factors driving its performance, and analyze the challenges and opportunities ahead.
FY2025 Holiday Sales Performance (November–December 2024)
According to Birks Group’s latest report, net sales increased by 4.0%, with comparable store sales up 1.3% from the previous year. Once again, third-party branded watches emerged as the standout performer, helping drive overall revenue.
E-commerce also played a crucial role, reflecting the broader trend of luxury shoppers becoming more comfortable with high-value online purchases. Birks’ ability to integrate digital and in-store experiences appears to be paying off.
Jean-Christophe Bédos, President and CEO of Birks Group, commented on the results:
“Our teams have delivered good sales results this holiday period as compared to the corresponding period last year, including sales growth over last year. We continue working on improving our operations despite increased pressure on costs and margins.”
But a single year’s growth doesn’t tell the full story. How does this performance compare to previous years?
A Five-Year Holiday Sales Comparison (FY2021–FY2025)
To gain better insight into Birks’ trajectory, let’s examine the company’s holiday season sales performance over the past five years:
| Fiscal Year (Holiday Period) | Net Sales Growth (Holiday Period) | Comparable Store Sales Growth | Key Performance Drivers |
|---|---|---|---|
| FY2025 (2024 Holiday Season) | +4.0% | +1.3% | Branded watches, e-commerce |
| FY2024 (2023 Holiday Season) | +3.2% | +0.8% | Luxury watches, holiday promotions |
| FY2023 (2022 Holiday Season) | +5.8% | +3.4% | Post-pandemic recovery, strong in-store traffic |
| FY2022 (2021 Holiday Season) | +7.1% | +5.0% | Pent-up demand after lockdowns, high jewellery sales |
| FY2021 (2020 Holiday Season) | -10.4% | -8.2% | COVID-19 impact, store closures |
Key Takeaways from the Five-Year Analysis
- Steady Recovery Since the Pandemic:
Birks has demonstrated consistent holiday sales growth since FY2021, when COVID-19 lockdowns led to a significant downturn. The strong recovery in FY2022 (+7.1%) and FY2023 (+5.8%) reflected pent-up demand and consumers returning to luxury retail. - Slower Growth in FY2024 and FY2025:
While the company remains on an upward trajectory, growth has slowed in the past two years. The FY2025 (2024 holiday season) increase of 4.0% follows a 3.2% rise in FY2024 (2023 holiday season), signalling a return to more stabilized, organic growth. - Branded Watches as a Consistent Growth Driver:
Over the past five years, third-party branded watches have been a key revenue driver, outperforming other product categories. This trend aligns with the continued popularity of high-end Swiss watch brands such as Rolex, Patek Philippe, and Omega. - E-Commerce’s Rising Role:
Birks has successfully expanded its online presence, capitalizing on digital retail trends. E-commerce has been an increasingly important factor in sales growth since the pandemic.
Challenges: Margin Pressures, Consumer Trends, and Competition
Despite the steady sales increase, Birks faces several challenges that could impact future performance.
1. Rising Costs and Margin Pressure
Bédos acknowledged ongoing cost pressures, which could squeeze profit margins despite rising sales. Factors such as:
- Higher operating expenses (including rent, wages, and logistics costs)
- Supply chain fluctuations (especially for luxury watches and imported jewellery)
- Foreign exchange risks (as many high-end brands price in USD or Euros)
All could pose challenges to long-term profitability.
2. Evolving Consumer Preferences
While branded watches have been a clear winner, other jewellery categories have seen more mixed results. Younger consumers are shifting towards more sustainable, customizable, and experience-driven luxury purchases, which could require Birks to adapt its product offerings.
3. Intense Competition in Luxury Retail
Birks operates in a highly competitive space, facing pressure from global luxury retailers, watch boutiques, and direct-to-consumer brands. Maintaining differentiation through exclusive partnerships, superior service, and a seamless omnichannel strategy will be crucial.
What’s Next for Birks?
The company’s future success may depend on how well it navigates the changing luxury retail landscape. Potential strategies for continued growth include:
- Further Expanding High-End Watch Partnerships:
Given the strong performance of branded watches, Birks could explore exclusive collaborations, limited editions, and brand partnerships. - Strengthening Digital and Omnichannel Strategy:
Investing in online customer experience enhancements, virtual consultations, and AI-driven personalization could boost e-commerce sales. - Appealing to the Next Generation of Luxury Buyers:
Younger consumers expect more than just products—they seek experiences, sustainability, and personalization. Birks may need to evolve its marketing and retail strategies accordingly.
Final Thoughts
Birks Group’s FY2025 (2024 holiday period) sales growth reinforces its position as a strong player in the Canadian luxury market. While the company continues to benefit from branded watches and e-commerce expansion, challenges such as margin pressures, shifting consumer preferences, and increasing competition must be carefully managed.
The key question remains: Can Birks sustain its growth while adapting to changing market conditions? If the company continues to innovate and capitalize on its strengths, it may very well remain a dominant force in Canadian luxury retail for years to come.Meta Description:
Birks Group (NYSE American: BGI) reported a 4.0% increase in holiday sales for FY2025, driven by strong demand for luxury branded watches and e-commerce growth. Read the full five-year performance analysis.
