Photo © Christina Esteban
Montréal-based jewellery brand Birks Group has released its financial results for fiscal year 2018, reporting an increase in net income despite lower sales. The results span a period concluding March 31.
The company’s net income for the fiscal year totals $11.7 million, up from last year’s result of $4.9 million. In part, Birks says this is thanks to the sale of its subsidiary Mayors Jewelers and the resulting gain of $29.9 million.
“Our fiscal 2018 results are reflective of the major transformative changes undertaken by the company during the fiscal year, most notably the sale of Mayors, which enabled us to substantially reduce our debt and strengthen our balance sheet,” said Jean-Christophe Bédos, the company’s CEO.
However, he adds, the sale was not the only significant change to occur during the fiscal year. Renovations of flagship stores in Montréal and Toronto may also have had an impact on the results. Bédos says slowing market conditions as well as temporary closures related to these renovations may have contributed to a four per cent decrease in comparable store sales, which dropped to $114.4 million from last year’s $116.4 million. Indeed, when the two renovated locations are excluded from the calculation, this year-over-year decline changes to an increase of one per cent.
“We have now turned our full attention to the execution of our five-year strategic plan,” said Bédos. “We believe the execution of our strategic initiatives has put the company on a clear path to long-term growth and value creation.”
