RAPAPORT... Birks Group’s revenue grew in the past fiscal year as the
Canadian retailer significantly increased its sales in the US.
Group revenue crept up 0.4% to $286.9 million in the 12
months that ended March 25, while comparable-store sales rose 1%, the
Montreal-based jewelry retailer reported last week.
In the US, comparable-store sales jumped 9%, mainly due
to higher watch sales as the company introduced new timepiece brands, Birks
said. This increase outweighed an 8% drop in comparable-store sales in the
retailer’s domestic market, stemming from difficult economic conditions in Western
Canada and lower spending by some affluent tourists, it added.
In January, the company reported a 16% jump in US comparable-store
sales during the holiday season. However, the 1% weakening of the Canadian
dollar against its US counterpart during the year dented overall net sales.
Most of the company’s stores are in Canada, but it reports in the US currency,
meaning a weaker Canadian dollar can negatively impact final revenue figures.
“Our fiscal 2017 results are reflective of our resiliency
as a company to adapt in a constantly changing and very challenging retail environment
in North America,” said Birks CEO Jean-Christophe Bédos. “Our continued
successes are attributable to our dedication to enhancing customer experiences
through our new store designs, our new collections and our creative marketing
campaigns.”
Net profit slid 9% to $4.9 million, partly due to the
costs of a restructuring plan that it started in the fiscal year ending May
2015.
Birks Group operates 26 stores under its own brand across
Canadian cities. It also runs 17 Mayors stores in Florida and Georgia, two
Brinkhaus stores in Calgary and Vancouver, and one Rolex store in Orlando.
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