Net Sales Increased by 16.3% vs. Prior
Holiday Period
Birks Group Inc. (the “Company” or “Birks Group”) (NYSE
American: BGI), reported its sales results for the 9 week interim
sales period ending December 25, 2021 (the “FY2022 Holiday Period”)
including a 16.3% net sales increase as compared to the comparable
period in FY2021 and a 17.2% net sales increase as compared to the
comparable period in FY2020.
For the FY2022 Holiday Period, net sales were 16.3% greater than
last year, driven by a comparable store sales increase of 18.4%,
primarily as a result of strong sales performances in the Bijoux
Birks brand product sales and in the third party watches and
jewellery categories. The 16.3% sales growth achieved in the FY2022
Holiday Period was also a result of the Company’s retail network
being fully opened, as compared to the comparable period in FY2021
in which seven of the Company’s 29 retail locations were
temporarily closed for in-person shopping due to government
mandated COVID-19 closures.
Net sales during the FY2022 Holiday Period represent a 17.2%
increase over the comparable period in FY2020, a period
unencumbered by COVID-19 restrictions. This increase was driven by
sales growth in all categories and selling channels, and
demonstrates the on-going success of the continued implementation
of the Company’s strategic plan including an improved merchandising
strategy and tailored marketing campaigns.
Mr. Jean-Christophe Bédos, President and Chief Executive Officer
of Birks Group, commented: “Our sales teams have delivered
remarkable results this holiday period including significant sales
growth over last year and over the pre-COVID period, an important
achievement that is a testament not only to our determination and
commitment to our customers, but also to the continued success of
our strategic plan. We remain focused on delivering excellence in
customer service, increasing our market share in the high-end
luxury watch and jewellery market in Canada, and building on the
success of our Bijoux Birks brand. I am proud of the results
achieved and would like to sincerely thank all our employees for
their continued perseverance, dedication and creativity as we
continue to navigate through the pandemic.”
On December 29, 2021, the Company also announced that it has
renewed and amended its senior secured revolving credit facility
(“Amended Credit Facility”) with Wells Fargo Capital Finance
Corporation Canada and its senior secured term loan (“Amended Term
Loan”) with Crystal Financial LLC (dba SLR Credit Solutions). The
Amended Credit Facility and Amended Term Loan extend the maturity
date of the Company’s existing loans from October 2022 to December
2026. The renewals include improvements on certain key terms and
conditions, which positively impact the Company’s liquidity
position.
Comparable Store Sales
We use comparable store sales as a key performance measure for
our business. Comparable store sales include stores open in the
same period in both the current and prior period. We include
e-commerce sales in our comparable store sales calculations. Stores
enter the comparable store calculation in their thirteenth full
month of operation under our ownership. Stores that have been
resized or relocated are evaluated on a case-by-case basis to
determine if they are functionally the same store or a new store
and then are included or excluded from comparable store sales,
accordingly. Comparable store sales measure the percentage change
in net sales for comparable stores in a period compared to the
corresponding period in the previous year. If a comparable store is
not open for the entirety of both periods, comparable store sales
measure the change in net sales for the portion of time that such
store was open in both periods. We believe that this measure
provides meaningful information on our performance and operating
results. However, readers should know that this financial measure
has no standardized meaning and may not be comparable to similar
measures presented by other companies.
About Birks Group Inc.
Birks Group is a leading designer of fine jewellery, timepieces
and gifts and operator of luxury jewellery stores in Canada. The
Company operates 25 stores under the Maison Birks brand in most
major metropolitan markets in Canada, one retail location in
Calgary under the Brinkhaus brand, one retail location in Vancouver
operated under the Graff brand and one retail location in Vancouver
under the Patek Philippe brand. The Bijoux Birks brand fine
jewellery collections are also available through select SAKS Fifth
Avenue stores in Canada and the U.S., select Mappin & Webb and
Goldsmiths locations in the United Kingdom, in Mayors stores in the
United States as well as several jewellery retailers across North
America. Birks was founded in 1879 and has become Canada’s premier
retailer and designer of fine jewellery, timepieces and gifts.
Additional information can be found on Birks’ web site,
www.birks.com.
Forward Looking Statements
This press release contains forward- looking statements which
can be identified by their use of words like “plans,” “expects,”
“believes,” “will,” “anticipates,” “intends,” “projects,”
“estimates,” “could,” “would,” “may,” “planned,” “goal,” and other
words of similar meaning. All statements that address expectations,
possibilities or projections about the future, including without
limitation, statements about our strategies for growth, expansion
plans, sources or adequacy of capital, expenditures and financial
results are forward-looking statements.
Because such statements include various risks and uncertainties,
actual results might differ materially from those projected in the
forward- looking statements and no assurance can be given that the
Company will meet the results projected in the forward-looking
statements. These risks and uncertainties include, but are not
limited to the following: (i) the magnitude and length of economic
disruption as a result of the worldwide COVID-19 outbreak,
including its impact on macroeconomic conditions, generally, as
well as its impact on the results of operations and financial
condition of the Company and the trading price of the shares; (ii)
economic, political and market conditions, including the economies
of Canada, and the U.S., which could adversely affect our business,
operating results or financial condition, including our revenue and
profitability, through the impact of changes in the real estate
markets, changes in the equity markets and decreases in consumer
confidence and the related changes in consumer spending patterns,
the impact on store traffic, tourism and sales; (iii) the impact of
fluctuations in foreign exchange rates, increases in commodity
prices and borrowing costs and their related impact on the
Company’s costs and expenses; (iv) changes in interest rates; (v)
the Company’s ability to maintain and obtain sufficient sources of
liquidity to fund its operations, to achieve planned sales, gross
margin and net income, to keep costs low, to implement its business
strategy, maintain relationships with its primary vendors, to
mitigate fluctuations in the availability and prices of the
Company’s merchandise, to compete with other jewelers, to succeed
in its marketing initiatives, and to have a successful customer
service program; (vi) the Company’s ability to continue to borrow
under the Amended Credit Facility and Amended Term Loan, (vii) the
Company’s ability to maintain profitable operations, as well as
maintain specified excess availability levels under the Amended
Credit Facility, make scheduled payments of principal and interest,
and fund capital expenditures; (viii) the Company’s ability to
execute its strategic vision; and (ix) the Company’s ability to
continue as a going concern.
Information concerning factors that could cause actual results
to differ materially is set forth under the captions “Risk Factors”
and “Operating and Financial Review and Prospects” and elsewhere in
the Company’s Annual Report on Form 20-F filed with the Securities
and Exchange Commission on June 17, 2021 and subsequent filings
with the Securities and Exchange Commission. The Company undertakes
no obligation to update or release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of this statement or to reflect the occurrence of
unanticipated events, except as required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220111006140/en/
Company Contacts: Katia Fontana Vice President and Chief
Financial Officer (514) 397-2592
For all press and media inquiries, please contact:
OverCat Communications Audrey Hyams Romoff, ahr@overcat.com,
(647) 223-9970 Chelsea Brooks, cb@overcat.com, (289) 221-6006
Birks (AMEX:BGI)
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