Birks(BGI) - 2023 Q4 - Annual Report

Financial Performance - For the fiscal year ended March 25, 2023, Birks Group reported total net sales of $163.0 million, a decrease of $18.3 million or 10.1% compared to the previous fiscal year[15]. - Gross profit for the fiscal year was $68.0 million, down $8.2 million or 10.8% from fiscal 2022[15]. - The company's EBITDA for fiscal 2023 was $3.8 million, a decrease of $6.5 million compared to $10.3 million in fiscal 2022[17]. - Birks Group reported an operating loss of $3.8 million for fiscal 2023, down from an operating income of $4.5 million in fiscal 2022[17]. - The net loss for fiscal 2023 was $7.4 million, or $0.40 per share, compared to a net income of $1.3 million, or $0.07 per share, in fiscal 2022[17]. - The net loss for the fiscal year ended March 25, 2023, was $(7,432) thousand, or -4.6% of net sales, compared to a net income of $1,287 thousand, or 0.7% in fiscal 2022[31]. - EBITDA for fiscal 2023 was $3,822 thousand, or 2.3% of net sales, down from $10,278 thousand, or 5.7% in fiscal 2022[31]. Sales and Revenue - Comparable store sales grew by 2.9% year-over-year, driven by strong performance in key markets for third-party branded timepieces and jewelry[4][15]. - Total net sales for fiscal 2023 were $163.0 million, a decrease of $18.3 million, or 10.1% compared to fiscal 2022[30]. - Net retail sales decreased by $14.4 million, primarily due to the exclusion of RMBG sales, despite a 2.9% increase in comparable store sales[30]. Costs and Expenses - The company recognized interest and other financing costs of $5.6 million, an increase of $2.4 million from $3.2 million in fiscal 2022[17]. - SG&A expenses increased to $66.1 million, or 40.6% of net sales, compared to $65.9 million, or 36.3% in fiscal 2022, an increase of 430 basis points[30]. - Foreign exchange losses increased to $1.4 million in fiscal 2023 from $0.2 million in fiscal 2022, impacting gross profit[30]. Strategic Initiatives - The company completed renovations of two key stores in important markets to enhance customer experience[4]. - Birks Group operates 21 stores under the Maison Birks brand and has expanded its presence through partnerships with various retailers across North America[28]. - The strategic focus included reducing sales promotions and discounting, which partially offset the decrease in gross profit margin[30]. Joint Venture Impact - Birks Group's investment in the RMBG joint venture impacted sales and gross profit, as historical sales were recognized at the flagship location and are now accounted for through the joint venture[15][17]. - The company's Vancouver flagship store was excluded from the calculation of comparable store sales due to the RMBG Joint Venture[30]. - The increase in comparable store sales was driven by improvements in the third-party brand portfolio and client offerings[30].