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Vancouver, Canada--Canadian jeweler Birks Group saw its sales fall by 10% over the last fiscal year. This slump has been attributed to the restructuring of its retail business in Vancouver and the impact of inflation.

[Image screenshot via Birks]

The company's revenue diminished to CAD 163 million ($124.1 million) in the 12 months leading up to March 25, as noted by Rapaport report, citing the group's recent financial reports. However, comparable-store sales – those at locations operating for over a year – observed a modest growth of 2.9%. This growth has been credited to increased demand for branded jewelry and timepieces and a rise in the average transaction value. These factors mitigated the sales decline resulting from economic uncertainty and inflationary pressures.

As per the report, Birks Group has recently entered a joint venture with FWI, establishing RMBG Retail Vancouver. This entity operates a Richard Mille boutique in Vancouver. Consequently, sales from the company's flagship store in Vancouver are now registered as part of RMBG, as clarified by Birks.

Despite significant economic obstacles and market uncertainties, Jean-Christophe Bédos, Birks' CEO, acknowledged the company's growth in comparable-store sales and increased average sales transaction value in the fiscal year 2023.

The report noted that the company's net income showed a loss of CAD 7.4 million ($5.7 million) for the year, starkly contrasting the CAD 1.3 million ($979,676) profit posted in the previous year. Notably, this dip in discretionary spending has particularly affected e-commerce, predominantly serving low and mid-price-point consumers, the company remarked, per the report.

Read more in the report on Rapaport.