Read on FashionNetwork.comBirks Reports Strong Sales Growth Fueled by European Acquisition
Canadian luxury jeweller Birks Group has announced a significant 16.2% increase in half-year sales, reaching $93.1 million. This growth is attributed to the strategic acquisition of European Boutique and robust retail performance across its product categories. The company also reported a 6.3% rise in comparable store sales and a narrowed operating loss, signaling a positive trajectory for the first half of Fiscal 2026.
In a notable development for the luxury retail sector, Birks Group Inc., the renowned Montreal-based jeweller, has reported a substantial surge in its financial performance for the first half of Fiscal 2026. The company's strategic initiatives, including a key European acquisition and strong in-store execution, have yielded impressive results, demonstrating resilience and growth in a competitive market.
Financial Performance Highlights
For the 26-week period ending September 27, 2025, Birks announced a 16.2% increase in net sales, which climbed to $93.1 million. This growth was driven by a dual strategy: the successful integration of its newly acquired European business and a strong underlying retail performance. The company also managed to narrow its operating loss to $0.2 million, an improvement from the $0.3 million loss reported in the same period the previous year, as detailed in the company's recent announcement covered by FashionNetwork.com.
The European Acquisition: A Strategic Move
A cornerstone of this growth story is Birks' acquisition of the luxury watch and jewellery business of European Boutique. Completed in July 2025 for a purchase price of $9 million, this strategic move expanded Birks' footprint and product portfolio. The acquisition from the Sutkiewicz family provided immediate access to established European markets and customer bases, contributing directly to the top-line sales increase. This expansion represents a calculated step in Birks' international growth strategy, allowing it to leverage its brand strength beyond North America.
Strong Retail and Comparable Sales Growth
Beyond the acquisition, Birks' organic retail performance proved exceptionally strong. Comparable store sales, a key metric indicating the health of existing locations, rose by 6.3%. This growth was broad-based, with strength observed across all major product categories. The company reported significant gains in sales of third-party branded timepieces from multiple luxury watchmakers. Furthermore, sales of both Birks branded jewelry and third-party branded jewelry also showed positive momentum, indicating a well-rounded product appeal and effective merchandising strategy.
Leadership Perspective and Future Outlook
Niccolò Rossi di Montelera, Executive Chairman of the Board and Interim CEO, credited the company's teams for their dedication. He stated that the results are a testament to the strength of Birks' product offerings and its commitment to customers. The successful integration of the European stores highlights the company's operational capabilities. While the report covers only the first half of the fiscal year, the narrowed loss and sales growth provide a positive foundation for Birks as it moves forward, aiming to build on this momentum in the crucial holiday season and beyond.
