Sales fell at Birks Group in the first fiscal half due to rough economic conditions in Western Canada.
According to the Montreal-based company, sales fell 3 per cent to $129.7 million in the 26 weeks that ended September 24. Revenue from its 27 Canadian stores dropped 14 per cent to $54.9 million, while U.S. sales jumped 6 per cent to $74.9 million. Overall, the group recorded a loss of $2 million versus last year’s profit of $830,000.
Birks notes that store traffic declined along with discretionary spending. While lower sales of fine jewellery negatively affected the company’s average transaction value, it was partially offset by a 5 per cent strengthening of the Canadian dollar over a year to September 24.
In the U.S., the company expanded its offering of watch and jewellery brands, leading to a higher average transaction value.
“Despite unfavorable economic conditions and the lower than expected sales in Canada, we had a good sales performance in the United States where we outperformed many of our competitors,” says Jean-Christophe Bédos, president and chief executive officer of Birks.
Author: Canadian Jeweller Magazine Staff
Canadian Jeweller Magazine Staff is the shared byline for reporting filed by the magazine's editorial desk. Founded in 1879, Canadian Jeweller is the longest running jewellery business publication in Canada, covering market reporting, retail strategy, watches, diamonds, coloured gemstones and the commerce of the Canadian jewellery trade. Work published under this byline is edited and verified by the Canadian Jeweller editorial team in Toronto.
