Birks Group (BGICF) Q4 2024 earnings summary

Executive summary

• FY2024 net sales rose 13.7% YoY and comparable store sales increased 7.5%; operating income turned positive at $1.2 million.

• Retail growth, led by third-party branded watches and jewelry, was partly offset by lower sales of Birks-branded products.

Financial highlights

• Net sales were $185.3 million, up $22.3 million YoY; gross profit increased 8.2% to $73.6 million.

• SG&A declined $0.4 million to $65.7 million; lower marketing and stock-based compensation costs offset higher compensation, card, occupancy and operating costs.

• EBITDA, a non-GAAP measure, rose to $10.0 million from $3.8 million; reported operating income was $1.2 million versus an operating loss of $3.8 million.

• Net loss narrowed to $4.6 million, or $0.24 per share, from $7.4 million, or $0.40 per share.

Outlook and guidance

• Near-term operations will remain agile amid economic pressures; the long-term aim is sustainable shareholder value.

• Strategic priorities include strengthening product offerings and customer experience, evaluating store productivity, and investing in e-commerce and prime retail locations.