Highlights
All figures presented herein are in Canadian dollars.
For the twenty-six-week period ended September 27, 2025 ("Fiscal 2026"), the Company reported net sales of $93.1 million, an increase of $13.0 million or 16.2% from the comparable prior period ended September 28, 2024 ("Fiscal 2025"). Comparable store sales for the twenty-six-week period ended September 27, 2025, increased by 6.3% compared to the corresponding period of Fiscal 2025. The increase in net sales is attributable in part to the acquisition of the luxury timepieces and jewelry retail activities of European Boutique ("European") as well as an increase in sales of third-party branded timepieces across multiple brands, Birks branded jewelry and third-party branded jewelry. The Company reported a gross profit of $36.5 million, an increase of $5.2 million, or 16.7%, compared to the corresponding period in Fiscal 2025, due to an increase in retail sales following the acquisition of European and strong third-party branded timepiece sales. Gross profit as a percentage of sales was 39.2% for the twenty-six-week period ended September 27, 2025, consistent with the gross profit as a percentage of sales of 39.0% in the twenty-six-week period ended September 28, 2024.
Mr. Niccolò Rossi di Montelera, Executive Chairman of the Board and Interim CEO, commented: "Our net sales, gross profit and comparable store sales for the first half of Fiscal 2026 are higher than the corresponding period in Fiscal 2025 due in part to the acquisition of the European business but also due to our strong retail performance, which speaks to the strength of our product offerings, both in terms of our Birks branded products and our third-party branded watches and jewelry."
Mr. Rossi di Montelera further commented: "I would like to thank our teams for their dedication and hard work. The growth achieved in the first half of Fiscal 2026 is a testament of our commitment to our customers and I am grateful for the unwavering efforts of all our employees which contributed to these results and the successful integration of the European stores."
Financial overview for the twenty-six-week period ended September 27, 2025
Total net sales for the twenty-six-week period ended September 27, 2025 were $93.1 million compared to $80.1 million for the twenty-six-week period ended September 28, 2024, an increase of $13.0 million or 16.2%. The increase in net sales is attributable in part to the acquisition of European, as well as an increase in sales of third-party branded timepieces across multiple brands and an increase in sales of Birks branded jewelry and third-party branded jewelry. The retail sales increase was further supported by an increase in units sold as well as an increase in average sales transaction value.
Comparable store sales increased by 6.3% during the twenty-six-week period ended September 27, 2025 compared to the twenty-six-week period ended September 28, 2024. The increase in comparable store sales is mainly attributable to strong sales in all product categories, particularly in third-party branded timepieces, but also in Birks branded jewelry and third-party branded jewelry. The comparable store sales increase was further supported by an increase in units sold as well as an increase in average sales transaction value.
Total gross profit was $36.5 million, or 39.2% of net sales, for the twenty-six-week period ended September 27, 2025, compared to $31.3 million, or 39.0% of net sales for the twenty-six-week period ended September 28, 2024. The increase of $5.2 million in total gross profit is primarily attributable to an increase in sales volume in retail following the acquisition of European and strong third-party branded timepiece sales. The 0.2% increase in gross margin is primarily attributable to a foreign exchange gain of $0.8 million compared to a loss in the twenty-six-week period ended September 28, 2024, partially offset by product mix. In addition, packaging, reserves and other costs were approximately $0.6 million greater than the twenty-six-week period ended September 28, 2024.
Selling General & Administrative ("SG&A") expenses in the twenty-six-week period ended September 27, 2025 were $33.0 million, or 35.4% of net sales, compared to $27.8 million, or 34.7% of net sales in the twenty-six-week period ended September 28, 2024, an increase of $5.2 million. One of the factors that contributed to this increase was the acquisition of European, which contributed $2.6 million. Overall, compensation rose by $1.3 million due to higher sales volume and increased headcount. Credit card fees increased by $0.7 million driven by higher sales. Occupancy costs grew by $1.2 million as a result of additional stores. Transaction costs related to the acquisition of European amounted to $0.4 million, while severance costs totaled $0.9 million, primarily related to the CEO transition. Professional fees and other expenses increased by $0.6 million and stock-based compensation rose by $0.2 million, mainly due to fluctuations in the stock price. These increases were partially offset by lower marketing costs, which decreased by $0.2 million as a result of cost-saving measures, including reduced spending on events and campaigns. As a percentage of sales, SG&A expenses in the twenty-six-week period ended September 27, 2025 increased by 0.7% as compared to the twenty-six-week period ended September 28, 2024.
The Company's EBITDA(1) for the twenty-six-week period ended September 27, 2025 was $4.8 million, an increase of $0.1 million, compared to EBITDA(1) of $4.7 million for the twenty-six-week period ended September 28, 2024.
The Company reported an operating loss of $0.2 million for the twenty-six-week period ended September 27, 2025, a decrease of $0.1 million compared to a reported operating loss of $0.3 million in the twenty-six-week period ended September 28, 2024.
The Company's recognized interest expense and other financing costs in the twenty-six week period ended September 27, 2025 were $3.7 million, a decrease of $0.3 million, compared to recognized interest expense and other financing costs of $4.0 million in the twenty-six-week period ended September 28, 2024. The decrease is mainly due to an increase of the foreign exchange gain of $0.9 million on U.S. denominated debt due to the weakening of the U.S dollar compared to the Canadian dollar during the respective periods, offset by an increase in the average amount outstanding on the amended credit facility and amended term loan.
The Company recognized a net loss for the twenty-six-week period ended September 27, 2025 of $2.6 million, or ($0.13) per share, compared to a net loss for the twenty-six-week period ended September 28, 2024 of $3.1 million, or ($0.16) per share.
(1)
This is a non-GAAP financial measure defined below under "Non-GAAP Measures" and accompanied by a reconciliation to the most directly comparable GAAP financial ...
