Canada-based jewellery retailer Birks has generated C$163.0m ($123.5m) in sales in fiscal year (FY) 2023, a 10.1% decrease from C$181.3m in FY22.
The decline was primarily due to the company’s retail channel, which saw sales decline by C$14.4m compared to the prior FY.
During the fiscal ending 25 March 2023, Birks posted a comparable store sales increase of 2.9%, driven by growth in both the branded jewellery and branded timepieces categories.
Gross profit for the retailer reached C$68.0m in FY23, representing 41.7% of full-year net sales. The gross margin percentage declined by 30 basis points (bps) over the fiscal.
The company’s reported operating loss was C$3.8m in FY23, compared to operating income of C$4.5m in FY23.
Birks suffered a net loss of C$7.4m over the fiscal against a net income of C$1.3m a year ago.
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The jewellery retailer also saw its earnings before interest, taxes, depreciation and amortisation (EBITDA) decline to C$3.8m in FY23.
Birks Group president and chief executive officer Jean-Christophe Bédos said: “During fiscal 2023, we achieved a 2.9% growth in comparable store sales and an increase in our average sales transaction value, as our core business continued to grow despite being confronted with significant economic headwinds including on-going inflationary pressures and a sense of uncertainty that permeated the market.
“Despite these challenges, we made progress against our strategic initiatives in fiscal 2023, and we continued to invest in our product offering and on enhancing our customer experience as we completed the renovation of two key stores in important markets.
“The results achieved in fiscal 2023, despite a challenging economic environment in the back half of the year, is a testament to our team’s unwavering commitment to our customers. I would like to thank our teams for their tireless efforts.
“While in the near-term we continue to run our business in an agile manner given the current economic environment, looking beyond, we remain committed to our long-term vision to generate sustainable, long-term shareholder value.”