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Birks Slides to Loss in Weak Canada Economy
Nov 23, 2016 7:21 AM
By Rapaport News
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RAPAPORT... Birks Group fell into the red in the first fiscal half
because of tougher economic conditions in Western Canada.
Sales fell 3 percent to $129.7 million in the 26 weeks that
ended September 24, the Montreal-based company reported. Revenue from Canada
slumped 14 percent to $54.9 million, outweighing a 6 percent jump in U.S. to
$74.9 million. The group recorded a loss of $2 million versus a profit of $830,000
a year ago.
The jeweler, which operates 27 stores in Canada, said
traffic declined along with discretionary spending on non-essential products. While
lower sales of higher-end jewelry negatively affected the average transaction
value, it was partially offset by a 5 percent strengthening of the Canadian
dollar over a year to September 24.
In the U.S., where Birks has 17 stores in the south east of
the country under the Mayors brand, stronger timepiece sales led to a higher
average transaction value. The company expanded its offering of watch and
jewelry brands and introduced new timepiece brands, it explained.
“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,” said Jean-Christophe Bédos,
Birks’ president and chief executive officer.
Comparable store sales fell 2 percent at constant exchange
rates, weighed by an 11 percent decline in Canada.
Birks also operates one store under the Rolex brand name and
two retail locations in Calgary and Vancouver under the Brinkhaus label.
Image: Dllu |
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Tags:
birks, birks group, Brinkhaus, Calgary, Canada, Jean-Christophe Bédos, mayors, montreal, Rapaport News, u.s., vancouver, Western Canada
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