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RAPAPORT... Birks Group Inc. reported that revenue rose 9.7 percent year on year to $139.7 million for the first fiscal half that ended on September 27. The increase was primarily driven by a comparable-store sales improvement of 20 percent. Same-store sales increased 14 percent in Canada and 25 percent in the U.S., where revenue improved from a higher number of transactions, a higher average unit sale price and stronger timepiece sales. Canada's growth was primarily the result of higher average unit sales, driven by stronger revenue from bridal and fine jewelry. The retailer narrowed its loss to $4 million compared with a loss of $7.7 million one year earlier. Gross profit fell to 39.6 percent of sales compared with 40.9 percent one year ago, primarily attributable to a 120 basis point decrease in retail gross margin associated with product sales mix with sales of higher priced products. The value of inventory at the close of the first half fell by 4.9 percent year on year to $150.4 million. Jean-Christophe Bédos, the president and CEO of Birks Group, said, “We are extremely pleased with our performance during the first half of the fiscal year. Our strategies, which we began implementing during the prior fiscal year, are delivering strong sales growth and are providing the company with significant momentum as we head into the holiday period.” Birks Group closed out its second quarter with a sales increase of 14.3 percent to $65.5 million and same-store sales up 24 percent, again driven by higher transaction prices and the success of its watch brand. The company did not report earnings for the quarter.
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