Birks Group Inc. (BGI) shares surged 70.21% in after-hours on Wednesday, June 30, 2021, and closed the day at $4.00 per share. Earlier, BGI’s stock remained unchanged in the morning session at $2.35. BGI shares have risen 201.36% over the last 12 months, and they have moved down by 9.62% in the past week. Over the past three months, the stock has lost 29.64%, while over the past six months, it has declined 161.11%.

Recent business update

On June 30, 2021, Birks Group Inc announced that its all stores across Canada are now open for in-person shopping and serving clients per the directives of local government and public health officials.

Recent financial results announcement

On June 17, 2021, Birks Group Inc released its financial results for the fiscal year ended March 27, 2021.

FY-2021 financial highlights

• For FY 2021, Birks Group Inc net sales were $143.1 million compared to $169.4 million for FY 2020.
  The gross profit was $ 56.4 million in FY 2021 compared to $64.5 million in FY 2020.
• Total operating expenses were $59.2 million in the fiscal year ended March 27, 2021, compared to $71.02 million for FY 2020.
• The company suffered a net loss of 8 million, or $0.32per share in FY 2021 compared to a net loss of $12.8 million, or $0.71 per share for fiscal 2020.
• EBITDA was $2.6 million in FY 2021 compared to EBITDA of negative $1.7 million for fiscal 2020.
• Adjusted EBITDA was $2.6 million for FY 2021 compared to a negative $1.4 million for FY 2020.

FY2021 Holiday Period Sales Results

On January 15, 2021, Birks Group Inc reported its sales results for the interim holiday sales period from November 1, 2020, through December 26, 2021.

• Due to the current pandemic, net sales were 0.2% lower than last year in FY 2021 holiday period.
• People did more online shopping which resulted in a 176% increase in e-commerce sales for the company during the holiday season.

New Term Loan with Investissement Québec

On July 9, 2021, Birks Group Inc closed a CAD$10 million subordinated secured term loan with Investissement Québec (“IQ”) on July 8, 2020. This new term loan was used to support the working capital needs of the Company following the impacts of COVID-19 and increases the Company’s borrowing capacity.

Conclusion

Well, the news of opening all of BGI stores across Canada took the BGI stock to new heights and it can resume its surge when the market will open on Thursday.