Core Insights - Birks Group Inc. reported an 11.8% increase in net sales for the FY2026 Holiday Period compared to the same period in FY2025, with comparable store sales rising by 2.5% [1][2] Sales Performance - The increase in net sales is attributed to the acquisition of European Boutique luxury timepieces and jewelry stores, as well as a rise in sales of branded timepieces and Birks branded jewelry, both in retail and e-commerce [2] - Comparable store sales growth was also driven by the performance of branded timepieces and Birks branded jewelry [2] Management Commentary - Niccolò Rossi di Montelera, Executive Chairman and Interim CEO, highlighted the strong sales results and emphasized the importance of customer service excellence, thanking employees for their dedication [3] Company Overview - Birks Group is a leading designer and operator of luxury jewelry, timepieces, and gifts retail stores in Canada, with 17 stores under the Maison Birks brand and various other luxury brands across major metropolitan markets [5]

Core Insights - BGI is one of the largest genomics companies globally, operating DNA sequencing laboratories and processing genetic data for various sectors [2][3] - Concerns are rising regarding BGI's potential to surpass Huawei in scale and implications, particularly in the realm of genetic data collection [3][8] - U.S. officials express fears about the implications of BGI's operations, including the potential for military applications and genetic enhancement [5][7] Company Overview - BGI originated as the Beijing Genomics Institute, closely linked to China's national genome projects, and has evolved into a global commercial entity [1] - The company provides services such as DNA sequencing, prenatal testing, cancer screening, and large-scale population genetic analysis [1] Market Position - BGI has established a significant global presence, processing genetic data for hospitals, pharmaceutical companies, and researchers across numerous countries [2] - The company is perceived as a strategic asset in the biotechnology sector, with its genetic data collection capabilities raising concerns about a "DNA arms race" [7] Political and Security Concerns - U.S. lawmakers have warned about BGI's close ties to the Chinese Communist Party and military, suggesting that commercial data is often intertwined with state security needs [6] - Senator Mark Warner emphasizes the need for vigilance regarding BGI's data collection practices, which could have far-reaching implications for national security [7][12] Legislative Actions - The U.S. Congress is considering the BIOSECURE Act to limit the operations of Chinese biotech firms like BGI within the U.S. [13] - BGI has publicly stated that it complies with regulations and does not access Americans' personal data [13] Technological Competition - Warner draws parallels between BGI's rapid growth and Huawei's rise, highlighting the need for the U.S. to adapt its intelligence and regulatory approaches to address emerging biotech threats [12][14] - The U.S. intelligence community is criticized for its slow response to the biotech challenge, with calls for a more advanced approach to monitoring technological advancements [14][15]

Core Insights - Birks Group Inc. reported a net sales increase of 16.2% to $93.1 million for the twenty-six-week period ended September 27, 2025, compared to the same period in the previous year [2][4] - The growth in sales was driven by the acquisition of European Boutique and strong performance in third-party branded timepieces and Birks branded jewelry [2][4] - Comparable store sales rose by 6.3%, indicating robust retail performance across all product categories [2][4] Financial Performance - Gross profit for the period was $36.5 million, a 16.7% increase from $31.3 million in the prior year, maintaining a gross profit margin of 39.2% [2][4] - Selling, General & Administrative (SG&A) expenses increased to $33.0 million, or 35.4% of net sales, up from $27.8 million, primarily due to the acquisition and higher sales volume [5][4] - The company reported an operating loss of $0.2 million, an improvement from a loss of $0.3 million in the previous year [8] Acquisition Impact - The acquisition of European Boutique contributed significantly to the sales increase, adding $2.6 million to SG&A expenses [5][4] - The integration of European stores has been highlighted as a successful effort by the company, contributing to overall growth [3] Market Position - Birks Group operates 17 stores under the Maison Birks brand and various other luxury brands across Canada, positioning itself as a leading designer and retailer of fine jewelry and timepieces [6] - The company has been in operation since 1879, establishing a strong brand presence in the luxury retail market [6]

EXHIBIT 99.7 BIRKS GROUP INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of Presentation and Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements ("financial statements") of Birks Group Inc. ("Birks Group" or the "Company") include the accounts of Birks Group Inc. for all periods presented. These unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounti ...

Core Viewpoint - Birks Group Inc. has recommended the appointment of Grant Thornton S.E.N.C.R.L. as auditors for the fiscal year ending March 28, 2026, marking a change from KPMG LLP, which has served since January 25, 2000 [1] Group 1 - The Board of Directors of Birks Group has made the recommendation for the new auditor [1] - Grant Thornton will replace KPMG as the independent auditors for the upcoming fiscal year [1] - KPMG has been the auditor for Birks Group for over 25 years [1]

Highlights All figures presented herein are in Canadian dollars. For the fiscal year ended March 29, 2025 ("fiscal 2025"), the Company reported net sales of $177.8 million, a decrease of $7.5 million or 4.0%, from the comparable fiscal year ended March 30, 2024 ("fiscal 2024"). Comparable store sales for fiscal 2025 decreased by 3.4% compared to the corresponding period in fiscal 2024. The decrease in net sales and comparable store sales is mainly due to lower sales of branded jewelry due to the exit of a j ...

Financial Performance - The company reported an accumulated deficit of $138.3 million as of March 29, 2025, with a net loss of approximately $12.8 million for the fiscal year ended March 29, 2025[35]. - For fiscal 2025, the Company reported a net loss of $12.8 million, compared to $4.6 million in fiscal 2024 and $7.4 million in fiscal 2023[47]. - The Company reported a stockholders' deficit of U.S. $6.1 million as of September 28, 2024, and has net losses in two of its three most recent fiscal years[89]. - The company recognized a net loss of $12.8 million, or $0.66 per share, in fiscal 2025, compared to a net loss of $4.6 million, or $0.24 per share, in fiscal 2024[188]. - Total net sales for fiscal 2025 were $177.8 million, a decrease of $7.5 million, or 4.0% compared to fiscal 2024[182]. - The reported operating loss for fiscal 2025 was $5.5 million, compared to an operating income of $1.2 million for fiscal 2024[182]. - Total gross profit for fiscal 2025 was $66.3 million, or 37.3% of net sales, down from $73.6 million, or 39.7% of net sales in fiscal 2024[182]. - The Company's EBITDA for fiscal 2025 was $9.2 million, a decrease of $0.8 million compared to fiscal 2024[182]. Debt and Financing - Total indebtedness increased by $9.6 million in fiscal 2025, reaching $99.864 million, compared to $90.311 million in fiscal 2024[36]. - The ratio of total indebtedness to total capitalization rose to 122.0% as of March 29, 2025, up from 106.0% as of March 30, 2024[36]. - The Amended Credit Facility was increased to a maximum amount of $90.0 million, with a maturity date extended to December 2026[42]. - The Amended Term Loan was amended to include an additional term loan of $13.5 million to fund the European Acquisition and ordinary course working capital[43]. - The company is required to maintain minimum excess availability under its Amended Credit Facility and Amended Term Loan to avoid default[41]. - The company had an outstanding balance of $73.6 million under its Amended Credit Facility, which has a maximum limit of $90.0 million[220]. - The Amended Credit Facility was extended to December 2026 and allows for an increase in total commitments by up to $5.0 million[221]. - The company is required to maintain excess availability of at least 40% of the borrowing base to pay dividends[226]. Operational Challenges - The company has negative cash flows from operations, which could adversely impact its financial condition and ability to continue as a going concern[35]. - The company’s operations are sensitive to economic conditions, including inflation and interest rates, which could impact consumer spending and sales[32]. - The company faces operational risks related to leasing retail stores, with only four leases renewable within the next two years, generating about 15.8% of fiscal 2025 net sales[61]. - The company may face significant costs and operational disruptions if it fails to successfully implement changes to its information systems[68]. - The company has identified material weaknesses in its internal control over financial reporting, which could negatively affect confidence in its financial statements[97]. Sales and Market Trends - Merchandise supplied by the largest luxury timepiece supplier accounted for approximately 29% of total net sales in fiscal 2025[62]. - Jewelry and other product category sales decreased to $68,927, representing 38.8% of total sales in fiscal 2025, down from $86,256 (46.6%) in fiscal 2024[114]. - Timepieces sales increased to $108,880, accounting for 61.2% of total sales in fiscal 2025, up from $99,019 (53.4%) in fiscal 2024[114]. - Comparable store sales decreased by 3.4% in fiscal 2025, with a 6.9% increase when excluding the impact of the third-party jewelry brand exit[185]. - The third fiscal quarter, including the holiday shopping season, contributed 34% of net sales in fiscal 2025, compared to 33% in fiscal 2024[127]. Capital Expenditures and Investments - Planned capital expenditures for remodeling retail stores are estimated at approximately $2.1 million during fiscal 2026[61]. - The Company invested approximately $25.4 million in capital expenditures over the last three fiscal years, with $7.5 million invested in fiscal 2025 alone[109]. - The Company completed the acquisition of 1067830 Ontario Limited for a total consideration of $9.0 million on July 8, 2025[108]. Environmental and Social Responsibility - The company recognizes the impact of climate change and is taking steps to reduce its environmental footprint, as adverse effects could disrupt operations and consumer spending[78]. - The company is committed to enhancing its Environmental, Social, and Governance (ESG) practices, focusing on sustainable operations and ethical sourcing[149]. - The company has established a Diversity, Equity, and Inclusion (DE&I) Committee to promote an inclusive culture and has delivered mandatory training on diversity and unconscious bias to all employees[148]. - The company has a zero-tolerance policy for discrimination or harassment and strives to maintain an open dialogue with employees to improve the workplace[164]. Shareholder and Governance - As of May 31, 2025, the company had 11,876,717 Class A voting shares issued and outstanding, with 69.6% of voting shares controlled by The Grande Rousse Trust[75][84]. - The Company submitted a compliance plan on March 27, 2025, which was accepted by NYSE American, granting an extension for continued listing until August 25, 2026[90]. - The company is subject to periodic review by NYSE American during the Plan Period, with potential delisting if compliance is not regained[92].

Financial Performance - For the twenty-six week period ended September 28, 2024, net sales were $80.1 million, a decrease of 8.8% compared to $87.8 million for the same period in 2023[24]. - Comparable store sales decreased by 4.9% for the twenty-six week period ended September 28, 2024, compared to an increase of 4.3% for the same period in 2023[23]. - Gross profit for the twenty-six week period ended September 28, 2024, was $31.3 million, down from $36.1 million in the prior year, reflecting a gross margin of 39.0%[24]. - The company reported an operating loss of $0.3 million for the twenty-six week period ended September 28, 2024, compared to an operating income of $0.5 million in the prior year[24]. - Net loss for the twenty-six week period ended September 28, 2024, was $3.1 million, compared to a net loss of $1.5 million for the same period in 2023[24]. - The company reported a net loss of $3.1 million, or -3.8% of net sales, compared to a net loss of $1.5 million, or -1.7% of net sales, in the prior year[34]. - EBITDA for the 26 weeks ended September 28, 2024, was $4.7 million, or 5.8% of net sales, compared to $5.0 million, or 5.6% of net sales, in the previous year[34]. - The Company recorded a net loss of $3.1 million for the twenty-six week period ended September 28, 2024, compared to a net loss of $1.5 million for the same period in 2023, indicating a deterioration in financial performance[88]. - The Company recorded a net loss of $3,081,000 for the 26 weeks ended September 28, 2024, compared to a net loss of $1,482,000 for the same period in 2023[72]. - The net loss per common share for the twenty-six week period ended September 28, 2024, was ($0.16), compared to ($0.08) for the same period in 2023, indicating a 100% increase in loss per share[108][109]. Expenses and Costs - Selling, general and administrative expenses (SG&A) were $27.8 million for the twenty-six week period ended September 28, 2024, compared to $32.5 million in the same period of 2023[24]. - Marketing expenses represented approximately 2.7% of net sales during the twenty-six week period ended September 28, 2024, down from 4.2% in the same period of 2023[17]. - Depreciation and amortization expense increased to $3.7 million from $3.1 million, mainly due to accelerated depreciation related to a store closure[28]. - Interest and other financing costs rose to $4.0 million from $3.4 million, driven by an increase in the average amount outstanding on the Amended Credit Facility[29]. - Fixed operating lease expense for the 26 weeks ended September 28, 2024, was $5.333 million, a decrease from $5.973 million in the prior year, representing a reduction of approximately 10.7%[131]. - Total lease expense for the 26 weeks ended September 28, 2024, was $7.869 million, down from $8.785 million for the same period in 2023, a decrease of approximately 10.4%[131]. Assets and Liabilities - Total assets as of September 28, 2024, were $193.1 million (U.S. $143.1 million), with total revenues of $80.1 million (U.S. $59.4 million) for the same period[15]. - Total current assets increased to $117,192,000 as of September 28, 2024, from $112,218,000 as of March 30, 2024[67]. - Total liabilities increased to $201,273,000 as of September 28, 2024, compared to $208,417,000 as of March 30, 2024[67]. - The company’s bank indebtedness rose to $71,152,000 as of September 28, 2024, from $63,372,000 as of March 30, 2024[67]. - The Company has a total stockholders' equity deficiency of $(8,226,000) as of September 28, 2024, compared to $(5,149,000) as of March 30, 2024[67]. - The Company has a working capital ratio of 0.92 as of September 28, 2024, below the required ratio of 1.01, but received a tolerance letter allowing a ratio of 0.90 for the upcoming fiscal year[47]. - The Company has a negative working capital as of September 28, 2024, and March 30, 2024, indicating potential liquidity issues[88]. - The Company has $46.3 million of net liabilities subject to foreign exchange rate risk, which could impact earnings by approximately $0.5 million with a 100 basis point change in the Canadian dollar against the U.S. dollar[60]. Cash Flow - Net cash used in operating activities was $3.5 million for the 26 weeks ended September 28, 2024, a decrease of $4.0 million compared to a net cash provided of $0.5 million in the same period last year[55]. - Net cash used in investing activities increased to $5.0 million for the 26 weeks ended September 28, 2024, compared to $4.3 million in the prior year[56]. - Net cash provided by financing activities was $8.5 million for the 26 weeks ended September 28, 2024, up from $4.6 million in the same period last year[57]. - The Company used net cash flows from operations of $3.5 million in the twenty-six week period ended September 28, 2024, compared to a positive cash flow of $0.5 million in the prior year[88]. Financing and Credit Facilities - As of September 28, 2024, the Company had an outstanding balance of $71.2 million under its Amended Credit Facility, with a maximum amount of $90.0 million available[36]. - The Company expects to maintain excess availability of at least $8.5 million for the next twelve months, ensuring compliance with financial covenants[40]. - The Company has $84.0 million of floating-rate debt as of September 28, 2024, which could result in an annualized interest expense change of approximately $0.8 million with a 100 basis point interest rate fluctuation[59]. - The Company has $15.6 million of excess borrowing capacity as of September 28, 2024, compared to $13.4 million as of March 30, 2024, reflecting a 16.4% increase[111]. - The Company entered into an amendment to its Amended Credit Facility on June 26, 2024, which adjusted the interest rate structure, potentially impacting future borrowing costs[113]. - The Company has outstanding loans of $3.7 million as of September 28, 2024, from a six-year term loan with Investissement Québec, which was used for working capital needs[91]. - The Company secured a $12.5 million term loan with SLR, which has been amended to extend the maturity date to December 2026[114]. Strategic Initiatives - The company plans to focus on enhancing customer awareness and appreciation of the Birks product brand through various marketing strategies and expanding sales channels, including e-commerce[18]. - The company plans to evaluate the productivity of existing stores and intends to close unproductive locations while opening new stores in prime retail areas[65]. - The Company continues to explore alternative financing sources, including public or private equity and asset disposals, to improve its financial position[99]. - The Company is actively managing liquidity and implementing cost reductions to mitigate adverse economic conditions affecting its operations[101].

Financial Performance - For the fiscal year ended March 30, 2024, total net sales were $185.3 million, representing a year-over-year increase of 13.7% from $163.0 million in fiscal 2023[6][8]. - Comparable store sales increased by 7.5% in fiscal 2024, driven primarily by strong sales of third-party branded timepieces and jewelry[6][8]. - Gross profit for fiscal 2024 was $73.6 million, or 39.7% of net sales, down from 41.7% in fiscal 2023, reflecting a decrease of 200 basis points due to a sales mix favoring high-end products[6][8]. - Selling, general and administrative (SG&A) expenses were $65.7 million, or 35.5% of net sales, a decrease from 40.6% in fiscal 2023, primarily due to lower marketing costs and stock-based compensation[8]. - The Company reported an operating income of $1.2 million for fiscal 2024, an increase of $5.0 million compared to an operating loss of $3.8 million in fiscal 2023[8][18]. - EBITDA for fiscal 2024 was $10.0 million, up from $3.8 million in fiscal 2023, indicating improved operational performance[8][12]. - The net loss for fiscal 2024 was $4.6 million, or $0.24 per share, an improvement from a net loss of $7.4 million, or $0.40 per share, in fiscal 2023[8][18]. Store Operations and Strategy - The Company undertook store renovation projects at Chinook and Laval, which contributed to higher sales post-opening[7]. - Birks Group continues to focus on enhancing customer experience and investing in product offerings despite economic challenges[7]. - The Company plans to evaluate store productivity and may close unproductive stores while investing in e-commerce and new retail locations[15]. Assets and Liabilities - Total assets increased to $203.268 billion as of March 30, 2024, up from $196.981 billion as of March 25, 2023, representing a growth of approximately 1.46%[20]. - Current assets rose to $112.218 billion, compared to $103.690 billion in the previous year, marking an increase of about 8.88%[20]. - Cash and cash equivalents increased to $1.783 billion from $1.262 billion, reflecting a growth of approximately 41.2%[20]. - Total current liabilities increased to $123.277 billion from $112.057 billion, an increase of about 10.0%[20]. - The current portion of long-term debt rose significantly to $4.352 billion from $2.133 billion, indicating an increase of approximately 104.0%[20]. - Stockholders' equity showed a deficiency of $(5.149) billion, worsening from $(603) million in the previous year[20]. - Accounts receivable decreased to $8.455 billion from $11.377 billion, a decline of approximately 25.4%[20]. - Inventories increased to $99.067 billion, up from $88.357 billion, representing a growth of about 12.9%[20]. - Long-term debt slightly increased to $22.587 billion from $22.180 billion, a rise of about 1.8%[20]. - The accumulated deficit widened to $(125.476) billion from $(120.845) billion, indicating a deterioration of approximately 3.3%[20].

Financial Performance - Total net sales for fiscal 2024 were $185.3 million, an increase of $22.3 million, or 13.7%, compared to $163.0 million in fiscal 2023[24]. - Net retail sales increased by $20.4 million, primarily driven by strong performance in third-party branded timepieces and jewelry, despite a decrease in Birks product brand sales[24]. - E-commerce sales increased by 26.8% due to online exclusive product offerings and improved site functionalities[24]. - Adjusted EBITDA for fiscal 2024 was $10.015 million, significantly higher than $3.822 million in fiscal 2023[35]. - For the fiscal year ended March 30, 2024, net sales increased to $185.3 million, up from $162.9 million in the previous year, representing a growth of 13.7%[55]. - Comparable store sales grew by 7.5% for the fiscal year 2024, compared to 2.9% in fiscal 2023 and 32.4% in fiscal 2022[54]. - Operating income for fiscal 2024 was $1.2 million, a significant improvement from an operating loss of $3.8 million in fiscal 2023[55]. - The company reported a net loss of $4.6 million for fiscal 2024, an improvement from a net loss of $7.4 million in fiscal 2023[55]. Expenses and Profitability - SG&A expenses in fiscal 2024 were $65.7 million, or 35.5% of net sales, down from $66.1 million, or 40.6% of net sales in fiscal 2023, reflecting a decrease of 510 basis points[25]. - Total gross profit for fiscal 2024 was $67.96 million, with a gross margin of 41.7%, down from 42.0% in fiscal 2023[30]. - Gross profit for fiscal 2024 was $73.6 million, with a gross margin of 39.7%, down from 41.7% in fiscal 2023[56]. - Depreciation and amortization expense increased to $6.6 million in fiscal 2024 from $5.7 million in fiscal 2023, primarily due to accelerated depreciation related to vendor agreements and store closures[57]. - The gross profit margin decreased in fiscal 2024, but is expected to stabilize and increase as the Company promotes its Birks product brand[119]. Capital and Financing - The company has $4.2 million outstanding on a loan from Investissement Québec for digital transformation, with a working capital ratio of 0.96 as of March 30, 2024[47]. - A capital lease facility financing agreement was entered into for up to U.S. $3.6 million, with approximately U.S. $2.4 million borrowed during fiscal 2024[48]. - The company incurred interest charges of $4.7 million on its Amended Credit Facility in fiscal 2024, slightly down from $4.8 million in fiscal 2023[85]. - The amount borrowed at year-end was $63.372 million, up from $57.890 million in the previous year[75]. - The company has a majority of independent directors on its board, which is a requirement under NYSE American rules, ensuring governance and oversight[177]. Corporate Governance - The audit and corporate governance committee held four meetings during fiscal 2024, with 100% attendance from all members[151]. - The executive committee held five meetings during fiscal year 2024, with 100% attendance from all members except one[152]. - The compensation and nominating committee evaluated director candidates based on integrity, business judgment, and industry knowledge, ensuring a diverse and skilled board[179]. - The compensation and nominating committee held four meetings in fiscal year 2024, with all members attending 100% of the meetings except for one member who attended 80%[209]. - The Board of Directors held nine meetings and fourteen committee meetings in fiscal year 2024, with all directors attending 100% of the meetings except for three directors who attended 80%[208]. Strategic Initiatives - The company launched several new collections under the Birks brand in fiscal 2024, enhancing its product offerings[88]. - The company is implementing a new ERP system with Microsoft Dynamics D365 for Retail to enhance retail operations, including POS and supply chain management, although there are risks of operational disruptions during implementation[159]. - The Company plans to continue evaluating store productivity and may close underperforming stores while seeking new prime retail locations[120]. - The Company is actively seeking alternative financing sources, including public or private equity and asset disposals, to support its operations[113]. Market Position and Compliance - The company has a significant historical reputation as a designer and retailer of fine jewelry, which distinguishes it from competitors[203]. - The company expects to maintain its status as a "foreign private issuer," allowing it to file less information with the SEC compared to U.S. companies[193]. - The company may face challenges in the future regarding compliance with NYSE American's continued listing standards, which could impact its stock trading status[192]. - Major shareholders include The Grande Rousse Trust and Meritus Trust Company Limited, each holding 71.11% of Class A voting shares[183]. Employee and Compensation - The aggregate compensation paid to the four executive officers was approximately $1,770,000 in annual salary[141]. - As of March 30, 2024, the company employed approximately 290 persons, with no employees governed by a collective bargaining agreement[153]. - As of March 30, 2024, the total number of employees decreased to 290 from 313 as of March 25, 2023, representing a reduction of approximately 7.3%[180]. - Each non-employee director is entitled to receive deferred stock units valued at US$45,000 starting September 2023[140]. Risks and Challenges - The Company faced challenges in fiscal 2024 due to store renovations and inflationary pressures affecting consumer spending[118]. - The Company is exposed to currency exchange risks that could materially affect its results of operations and financial condition[217]. - The company has established an allowance for slow-moving finished goods inventory, reflecting estimation uncertainty based on future demand and market conditions[157].