Birks Group Inc. (NYSE American: BGI) reported its financial performance for the 26‑week period ended September 27, 2025, posting net sales of $93.1 million, a 16.2% increase from the comparable period in fiscal 2025. The company’s gross profit rose to $36.5 million, up 16.7% from $31.3 million in the prior year, while comparable store sales grew 6.3% year‑over‑year.
The sales lift is largely attributable to the July 2025 acquisition of European Boutique’s luxury watch and jewelry business, which added seven retail locations and a multi‑brand portfolio to Birks’ Canadian footprint. In addition, third‑party branded timepiece sales and Birks‑branded jewelry continued to perform strongly, supporting the 6.3% rise in comparable store sales and helping to offset the modest impact of higher operating costs.
Gross profit margin remained essentially flat at 39.2% versus 39.0% in fiscal 2025, indicating that the cost of goods sold scaled in line with revenue growth. The margin stability reflects the company’s ability to maintain pricing power in its core luxury segments while integrating the new European assets without significant cost overruns.
Operating income was a loss of $182 k, a slight improvement over the $300 k loss reported for the same period in fiscal 2025. The loss is driven by $3.694 million in interest and other financial costs, largely a result of the $13.5 million incremental loan and $3.75 million shareholder loan taken to fund the European acquisition. These financing costs have not yet been fully amortized, contributing to the operating loss despite revenue growth.
Net loss for the 26‑week period was $2.558 million, a 17% improvement from the $3.1 million loss in the comparable period of fiscal 2025. The narrowing loss reflects higher sales and stable margins, but the company remains in a loss position as it continues to service the debt incurred for the acquisition and other working‑capital needs.
The European Boutique acquisition, completed for approximately $9 million in July 2025, has already begun to contribute to revenue and gross profit. The company secured significant debt financing to support the deal, including a $13.5 million loan and a $3.75 million loan agreement with a controlling shareholder, both maturing in December 2026. These financing arrangements have increased interest expense but are expected to pay off as the acquired assets generate incremental cash flow.
Executive Chairman and interim CEO Niccolò Rossi di Montelera said the first‑half results “demonstrate the strength of our product portfolio and the positive impact of the European acquisition.” He added that the company remains focused on cost control and operational efficiency while navigating a challenging macroeconomic environment.
Overall, Birks Group’s first‑half fiscal 2026 results show a clear acceleration in sales and a narrowing loss trajectory, driven by strategic expansion and disciplined cost management. While the company is still operating at a loss, the improved financials suggest that the acquisition is beginning to pay off and that Birks is positioning itself for longer‑term profitability as it continues to scale its luxury footprint.
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