The Company delivered a 9.7% increase in sales during the period compared to the same prior year period.
Highlights
All figures presented herein are in Canadian dollars.
In the twenty-six week period ended
In the twenty-six week period ended
Mr. Jean-Christophe Bédos, President and Chief Executive Officer of
Mr. Bédos further commented: "Our sales growth during an uncertain macroeconomic environment was largely due to the hard work and dedication of our teams."
Financial overview for the twenty-six week period ended
- Total net sales for the twenty-six week period ended
September 23, 2023 were$87.8 million compared to$80.0 million in the twenty-six week period endedSeptember 24, 2022 , an increase of$7.8 million or 9.7%. This sales increase is attributable primarily to the increase in sales of both branded watches and branded jewelry; - Comparable store sales increased by 4.3% during the twenty-six week period ended
September 23, 2023 compared to the twenty-six week period endedSeptember 24, 2022 . The increase in comparable store sales is mainly attributable to the performance of both branded watches, branded jewelry, as well as Brinkhaus' jewelry sales outperforming sales for the comparable period last year. Branded jewelry and branded timepiece products benefitted from the Company's continuously improving 3rd party brand portfolio and client offering; - Total gross profit was
$36.1 million , or 41.1% of net sales, for the twenty-six week period endedSeptember 23, 2023 compared to$33.9 million , or 42.3% of net sales for the twenty-six week period endedSeptember 24, 2022 . This increase in gross profit is attributable mainly to an increase in the volume of sales, specifically in branded watches and branded jewelry. This increase is partially offset by a decrease in gross margin of 120 basis points. The decrease of 120 basis points in gross margin percentage was related to the difference in product mix favoring third-party branded watches and jewelry, as well as a lower foreign exchange gain experienced in the period; - SG&A expenses in the twenty-six week period ended
September 23, 2023 were$32.5 million , or 37.0% of net sales, compared to$31.9 million , or 39.9% of net sales in the twenty-six week period endedSeptember 24, 2022 , an increase of$0.6 million . The drivers of the increase in SG&A expenses in the period include higher general operating and variable costs ($1.2 million ) driven by higher credit card fees due to the increase in sales as well as an increase in security costs related to stores being open for longer hours. Compensation costs also increased ($0.3 million ) driven by the increase in sales as well as occupancy costs ($0.3 million ) related to inflation. These increases are partially offset by lower stock-based compensation ($1.2 million ) in part related to the grant of stock-based compensation inSeptember 2022 that did not reoccur inSeptember 2023 , as well as recent market dynamics and foreign exchange fluctuations. As a percentage of sales, SG&A expenses in the twenty-six week period endedSeptember 23, 2023 have decreased by 290 basis points as compared to the twenty-six week period endedSeptember 24, 2022 . - The Company recognized a net loss for the twenty-six week period ended
September 23, 2023 of$1.5 million , or ($0.08 ) per share, compared to a net loss for the twenty-six week period endedSeptember 24, 2022 of$2.0 million , or$(0.11) per share. - The Company's EBITDA (1) for twenty-six week period ended
September 23, 2023 was$5.0 million , an increase of$2.1 million , compared to EBITDA(1) of$2.9 million for the twenty-six week period endedSeptember 24, 2022 ; and - The Company reported operating income of
$0.5 million for the twenty-six week period endedSeptember 23, 2023 , an increase of$1.2 million , compared to a reported operating loss of$0.7 million in the twenty-six week period endedSeptember 24, 2022 ; and
(1) | This is a non-GAAP financial measure defined below under "Non-GAAP Measures" and accompanied by a reconciliation to the most directly comparable GAAP financial measure. |
About
NON-GAAP MEASURES
The Company reports financial information in accordance with
EBITDA
"EBITDA" is defined as net income (loss) from continuing operations before interest expense and other financing costs, income taxes expense (recovery) and depreciation and amortization.
EBITDA
For the twenty-six week period ended | ||
Net (loss) income ( | (1,482) | (1,996) |
as a % of net sales | -1.7 % | -2.5 % |
Add the impact of: | ||
Interest expense and other financing costs | 3,350 | 2,266 |
Depreciation and amortization | 3,089 | 2,620 |
EBITDA (non-GAAP measure) | $ 4,957 | $ 2,890 |
as a % of net sales | 5.6 % | 3.6 % |
Forward Looking Statements
This press release contains forward- looking statements which can be identified by their use of words like "plans," "expects," "believes," "will," "anticipates," "intends," "projects," "estimates," "could," "would," "may," "planned," "goal", "continue", "strategy" and other words of similar meaning. All statements that address expectations, possibilities or projections about the future are forward looking statements, including without limitation, statements about anticipated economic conditions, generation of shareholder value, our strategies for growth, performance drivers, expansion plans, sources or adequacy of capital, expenditures, financial results and initiatives that are part of our long-term strategic objectives to drive sales.
Because such statements include various risks and uncertainties, actual results might differ materially from those projected in the forward- looking statements and no assurance can be given that the Company will meet the results projected in the forward-looking statements. These risks and uncertainties include, but are not limited to the following: (i) a decline in consumer spending or deterioration in consumer financial position; (ii) economic, political and market conditions, including the economies of
Information concerning factors that could cause actual results to differ materially is set forth under the captions "Risk Factors" and "Operating and Financial Review and Prospects" and elsewhere in the Company's Annual Report on Form 20-F filed with the
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – UNAUDITED
(In thousands, except per share amounts)
26 weeks ended | 26 weeks ended | ||
Net sales | $ 87,817 | $ 80,040 | |
Cost of sales | 51,750 | 46,170 | |
Gross profit | 36,067 | 33,870 | |
Selling, general and administrative expenses | 32,483 | 31,923 | |
Depreciation and amortization | 3,089 | 2,620 | |
Totaloperating expenses | 35,572 | 34,543 | |
Operating (loss) income | 495 | (673) | |
Interest and other financial costs | 3,350 | 2,266 | |
(Loss) income before taxes and equity in earnings of joint venture | (2,855) | (2,939) | |
Income taxes (benefits) | — | — | |
Equity in earnings of joint venture, net of taxes | 1,373 | 943 | |
Net (loss) income | (1,482) | (1,996) | |
Weighted average common shares outstanding | |||
Basic | 18,953 | 18,627 | |
Diluted | 18,953 | 18,627 | |
Net (loss) income per common share | |||
Basic | $ (0.08) | $ (0.11) | |
Diluted | $ (0.08) | $ (0.11) |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Assets | |||
Current Assets | |||
Cash and cash equivalents | |||
Accounts receivable and other receivables | 9,021 | 11,377 | |
Inventories | 92,025 | 88,357 | |
Prepaid expenses and other current assets | 2,766 | 2,694 | |
Total current assets | 105,803 | 103,690 | |
Long-term receivables | 1,515 | 2,000 | |
Equity investment in joint venture | 3,330 | 1,957 | |
Property and equipment | 26,446 | 26,837 | |
Operating lease right-of-use asset | 52,640 | 55,498 | |
Intangible assets and other assets | 7,566 | 6,999 | |
Total non-current assets | 91,497 | 93,291 | |
Total assets | |||
Liabilities and Stockholders' Equity | |||
Current liabilities | |||
Bank indebtedness | |||
Accounts payable | 38,564 | 37,645 | |
Accrued liabilities | 5,866 | 7,631 | |
Current portion of long-term debt | 4,027 | 2,133 | |
Current portion of operating lease liabilities | 6,580 | 6,758 | |
Total current liabilities | 114,863 | 112,057 | |
Long-term debt | 23,203 | 22,180 | |
Long-term portion of operating lease liabilities | 59,570 | 62,989 | |
Other long-term liabilities | 1,695 | 358 | |
Total long-term liabilities Stockholders' equity: Class A common stock – no par value, unlimited shares authorized, issued and outstanding 11,012,999 (10,795,443 as of | 84,468 40,674 | 85,527 39,019 | |
Class B common stock – no par value, unlimited shares authorized, issued and outstanding | |||
7,717,970 | 57,755 | 57,755 | |
Preferred stock – no par value, Unlimited shares authorized, none issued | — | — | |
Additional paid-in capital | 21,876 | 23,504 | |
Accumulated deficit | (122,377) | (120,845) | |
Accumulated other comprehensive loss | (9) | (36) | |
Total stockholders' deficiency | (2,031) | (603) | |
Total liabilities and stockholders' deficiency | $ 197,300 | $ 196,981 |
Company Contacts:
Vice President and Chief Financial Officer
(514) 397-2592
For all press and media inquiries, please contact:
(289) 221-6006
SOURCE
© Canada Newswire, source