Birks Group Inc Shares Took Off; Here’s Why
Birks Group Inc (NYSEMKT:BGI) investors cheer the news that the Company’s comparable store sales during the holiday season increased by 11% on a consolidated constant exchange rate basis compared to last year’s holiday season. Comparable store sales in the U.S. increased by 16%, while Canadian comparable store sales grew by 3% on constant exchange rate basis compared to the prior year’s holiday season. Comparable store sales include stores open in the same period in both the current and prior year. The growth in comparable store sales in both Canada and the U.S. was primarily the result of the Company’s success in growing its average sales transaction and conversion rates, reflecting the success of the Company’s long-term sales growth strategies.
In the wake of the announcement, Birks Group shares rose nearly 14% to $1.34 in Thursday’s trading session.
“We are very pleased to see that the continued execution of our sales growth strategies has led to a record year in terms of holiday sales. These results were driven by our focus on our Birks-branded products, our marketing campaigns as well as our continued dedication to enhancing customer experience. We also recognize the great support we received from our key suppliers and from our senior lenders who, in December, extended our senior credit facilities at favorable terms to 2021. As we enter the final quarter of our fiscal year, we are confident that we will build on the momentum of these holiday season successes,” President and CEO Jean-Christophe Bédos commented.
Birks Group, Inc. is a designer, maker and purveyor of prestige jewelry, timepieces and giftware in the U.S. and Canada. It operates through the following segments: Retail and Other. The Retail segment operates stores across Canada under the Birks brand, and stores in the Southeastern U.S. under the Mayors brand, store under the Rolex brand name in Orlando, as well as retail locations in Calgary and Vancouver under the Brinkhaus brand. The Other segment consists of e-commerce, gold exchange, and wholesale. It offers designer jewelry, diamonds, gemstones, precious metal jewelry, rings, wedding bands, earrings, bracelets, necklaces, charms, baby jewelry, timepieces and giftware.