Birks(BGI) - 2025 Q4 - Annual Report

Financial Performance - For fiscal 2025, Birks Group reported net sales of $177.8 million, a decrease of $7.5 million or 4.0% from fiscal 2024[3] - Comparable store sales decreased by 3.4% in fiscal 2025, but increased by 6.9% when excluding the impact of third-party jewelry brand movement, primarily driven by timepiece sales[5] - Gross profit for fiscal 2025 was $66.3 million, representing 37.3% of net sales, down from 39.7% in fiscal 2024, a decrease of 240 basis points[5] - Selling, general and administrative (SG&A) expenses decreased to $59.5 million, or 33.5% of net sales, from $65.7 million, or 35.5% of net sales in fiscal 2024[5] - The adjusted EBITDA for fiscal 2025 was $9.2 million, a decrease of $0.8 million compared to $10.0 million in fiscal 2024[5] - The company reported a net loss of $12.8 million, or $0.66 per share, compared to a net loss of $4.6 million, or $0.24 per share in fiscal 2024[6] Strategic Initiatives - Birks Group opened two new stores in fiscal 2025 and announced the acquisition of the watch and jewelry business of European Boutique, aiming to enhance sales and improve results[4] - The company continues to focus on cost management, reflected in the decrease of SG&A expenses as a percentage of sales by 200 basis points compared to fiscal 2024[5] Asset and Liability Management - Total assets decreased to $196.08 billion as of March 29, 2025, from $203.27 billion on March 30, 2024, representing a decline of approximately 3.6%[18] - Current liabilities increased to $149.59 billion, up from $123.28 billion, marking a rise of about 21.3% year-over-year[18] - Stockholders' equity showed a deficiency of $18.01 billion, worsening from a deficiency of $5.15 billion in the previous year[18] - Cash and cash equivalents decreased to $1.51 billion from $1.78 billion, a decline of approximately 15.3%[18] - Accounts receivable decreased to $6.61 billion from $8.46 billion, a drop of about 21.8%[18] - Inventories increased significantly to $116.28 billion, up from $99.07 billion, reflecting a rise of approximately 17.3%[18] - Long-term debt decreased slightly to $21.37 billion from $22.59 billion, a reduction of about 5.4%[18] - Total current assets increased to $126.47 billion from $112.22 billion, an increase of approximately 12.7%[18] - The accumulated deficit widened to $138.30 billion from $125.48 billion, indicating a deterioration of about 10.5%[18] - Total long-term liabilities decreased to $64.51 billion from $85.14 billion, a decline of approximately 24.2%[18] Financing Costs - Interest and other financing costs increased to $9.7 million in fiscal 2025, up by $1.7 million from $8.0 million in fiscal 2024[6] Impairment - The company experienced an impairment of long-lived assets amounting to $4.6 million related to capitalized software costs due to delays in implementing its ERP system[5]