Birks FY21 Earnings Impacted By COVID-19 Restrictions

Jewelry designer and retailer Birks Group Inc BGI reported FY21 sales of C$143.1 million, down 15.5% year-on-year.
The COVID-19 pandemic had a significant impact on sales as the company’s stores were closed at intermittent periods due to restrictions imposed by the government authorities.
E-commerce sales grew 201% Y/Y and accounted for about 4.9% of total sales. Same-store sales fell 14.3% Y/Y.
The gross margin was 39.4%, a 130 basis point increase Y/Y mainly due to reduced sales promotions and discounts.
Operating expenses were 41.4% of sales. Operating loss was C$2.8 million, down 56% Y/Y
Adjusted EBITDA was C$2.6 million, 1.8% of sales.
EPS loss was C$(0.32), down 54% Y/Y.
“In response to the pandemic, our teams reacted very quickly to ensure that we continuously met the evolving needs of our customers throughout these unprecedented times, including the improvement of our omnichannel offering, which was reflected in the 201% increase in our e-commerce sales during fiscal 2021,” said Jean-Christophe Bédos, Chief Executive Officer.
Price action: BGI shares are down 4.55% at $2.31 on the last check Friday.

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