RAPAPORT: Birks Group’s sales fell 4 percent to $134 million year on year in the six months to September 26, mainly because of unfavorable foreign exchange rates, the Canadian jewelry retailer said November 20.
Excluding a $10.2 million adjustment attributable to translating Canadian sales into U.S. dollars, revenue increased 3 percent to $144.2 million. Comparable store sales grew 3 percent. Gross profit fell 7 percent to $51.6 million. The Canadian dollar depreciated 4.9 percent against the U.S. currency in the period, according to data compiled by Bloomberg.
Comparable store sales in Canada increased 10 percent in local currency, and U.S. same-store sales decreased 2 percent due to a strong U.S. dollar that affected tourist sales. The U.S. domestic business remained strong, according to the company.
“We believe 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,” president and chief executive officer Jean-Christophe Bédos said in the statement.
Birks Group operates 48 stores in Canada and the U.S. states of Florida and Georgia.
