Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 25, 2017shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Mar. 25, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | BGI |
Entity Registrant Name | BIRKS GROUP INC. |
Entity Central Index Key | 1,179,821 |
Current Fiscal Year End Date | --03-25 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Class A Common Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 10,242,911 |
Class B Common Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 7,717,970 |
Series A Preferred Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 | |
Current assets: | |||
Cash and cash equivalents | $ 1,944 | $ 2,344 | |
Accounts receivable | 13,561 | 10,293 | |
Inventories | 132,069 | 137,839 | |
Prepaids and other current assets | 2,191 | 1,793 | |
Total current assets | 149,765 | 152,269 | |
Property and equipment | 22,990 | 29,419 | |
Intangible assets | 690 | 792 | |
Other assets | 190 | 493 | |
Deferred incomes taxes | 5,303 | ||
Total non-current assets | 29,173 | 30,704 | |
Total assets | 178,938 | 182,973 | |
Current liabilities: | |||
Bank indebtedness | 70,434 | 62,431 | |
Accounts payable | 46,657 | 46,730 | |
Accrued liabilities | 8,386 | 9,040 | |
Current portion of long-term debt | 2,810 | 5,634 | |
Total current liabilities | 128,287 | 123,835 | |
Long-term debt | 30,525 | 46,651 | |
Other long-term liabilities | 7,330 | 4,783 | |
Total long-term liabilities | 37,855 | 51,434 | |
Commitments and Contingencies | |||
Stockholders' equity: | |||
Common stock | 69,601 | 69,601 | |
Preferred stock - no par value, unlimited shares authorized, none issued | [1] | ||
Additional paid-in capital | 16,372 | 16,216 | |
Accumulated deficit | (73,921) | (78,849) | |
Accumulated other comprehensive income | 744 | 736 | |
Total stockholders' equity | 12,796 | 7,704 | |
Total liabilities and stockholders' equity | 178,938 | 182,973 | |
Class A Common Stock [Member] | |||
Stockholders' equity: | |||
Common stock | [1] | 30,988 | 30,988 |
Class B Common Stock [Member] | |||
Stockholders' equity: | |||
Common stock | [1] | $ 38,613 | $ 38,613 |
[1] | unlimited shares authorized |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 25, 2017 | Mar. 26, 2016 |
Common stock, shares outstanding | 17,960,881 | 17,960,881 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares issued | 0 | 0 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares issued | 10,242,911 | 10,242,911 |
Common stock, shares outstanding | 10,242,911 | 10,242,911 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares issued | 7,717,970 | 7,717,970 |
Common stock, shares outstanding | 7,717,970 | 7,717,970 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 286,921 | $ 285,826 | $ 301,637 |
Cost of sales | 178,487 | 176,439 | 183,832 |
Gross profit | 108,434 | 109,387 | 117,805 |
Selling, general and administrative expenses | 94,226 | 91,125 | 103,735 |
Restructuring charges | 842 | 754 | 2,604 |
Depreciation and amortization | 5,034 | 5,229 | 5,932 |
Gain on sale of assets | (3,229) | ||
Impairment of long-lived assets | 238 | ||
Total operating expenses | 100,102 | 93,879 | 112,509 |
Operating income | 8,332 | 15,508 | 5,296 |
Interest and other financing costs | 8,681 | 10,020 | 11,285 |
Debt extinguishment charges | 2,643 | ||
Income (loss) before income taxes | (349) | 5,488 | (8,632) |
Income tax (recovery) expense | (5,277) | 50 | |
Net income (loss) | $ 4,928 | $ 5,438 | $ (8,632) |
Weighted average common shares outstanding: | |||
Basic | 17,961 | 17,961 | 17,937 |
Diluted | 18,418 | 17,961 | 17,937 |
Net income (loss) per share: | |||
Basic | $ 0.27 | $ 0.30 | $ (0.48) |
Diluted | $ 0.27 | $ 0.30 | $ (0.48) |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 4,928 | $ 5,438 | $ (8,632) | |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | [1],[2] | 8 | (666) | (2,359) |
Total other comprehensive income (loss) | $ 4,936 | $ 4,772 | $ (10,991) | |
[1] | Item that may be reclassified to the Statement of Operations in future periods | |||
[2] | The change in cumulative translation adjustments is not due to reclassifications out of accumulated other comprehensive income (loss). |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Voting Common Stock Outstanding [Member] | Voting Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||
Beginning Balance at Mar. 29, 2014 | $ 13,622 | $ 69,475 | $ 16,041 | $ (75,655) | $ 3,761 | |||
Beginning Balance, Shares at Mar. 29, 2014 | 17,849,509 | |||||||
Net (loss) income | (8,632) | (8,632) | ||||||
Cumulative translation adjustment | [2] | (2,359) | [1] | (2,359) | ||||
Total comprehensive income (loss) | (10,991) | |||||||
Compensation expense resulting from stock options and stock appreciation rights granted to Management | 76 | 76 | ||||||
Exercise of stock options | $ 116 | 126 | (10) | |||||
Exercise of stock options, Shares | 111,372 | 111,372 | ||||||
Ending Balance at Mar. 28, 2015 | $ 2,823 | 69,601 | 16,107 | (84,287) | 1,402 | |||
Ending Balance, Shares at Mar. 28, 2015 | 17,960,881 | 17,960,881 | ||||||
Net (loss) income | $ 5,438 | 5,438 | ||||||
Cumulative translation adjustment | [2] | (666) | [1] | (666) | ||||
Total comprehensive income (loss) | 4,772 | |||||||
Compensation expense resulting from stock options and stock appreciation rights granted to Management | 109 | 109 | ||||||
Exercise of stock options | $ 0 | |||||||
Exercise of stock options, Shares | 0 | |||||||
Ending Balance at Mar. 26, 2016 | $ 7,704 | 69,601 | 16,216 | (78,849) | 736 | |||
Ending Balance, Shares at Mar. 26, 2016 | 17,960,881 | 17,960,881 | ||||||
Net (loss) income | $ 4,928 | 4,928 | ||||||
Cumulative translation adjustment | [2] | 8 | [1] | 8 | ||||
Total comprehensive income (loss) | 4,936 | |||||||
Compensation expense resulting from stock options and stock appreciation rights granted to Management | 156 | 156 | ||||||
Exercise of stock options | $ 0 | |||||||
Exercise of stock options, Shares | 0 | |||||||
Ending Balance at Mar. 25, 2017 | $ 12,796 | $ 69,601 | $ 16,372 | $ (73,921) | $ 744 | |||
Ending Balance, Shares at Mar. 25, 2017 | 17,960,881 | 17,960,881 | ||||||
[1] | Item that may be reclassified to the Statement of Operations in future periods | |||||||
[2] | The change in cumulative translation adjustments is not due to reclassifications out of accumulated other comprehensive income (loss). |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Cash flows from (used in) operating activities: | |||
Net income (loss) | $ 4,928 | $ 5,438 | $ (8,632) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Deferred income taxes | (5,303) | ||
Depreciation and amortization | 5,065 | 5,275 | 5,991 |
Impairment of long-lived assets | 238 | ||
Amortization of debt costs | 947 | 973 | 724 |
Debt extinguishment charges | 2,643 | ||
Other operating activities, net | 440 | 31 | 342 |
Loss (Gain) on sale of assets | (3,229) | ||
(Increase) decrease in: | |||
Accounts receivable and other receivables | (3,915) | (3,189) | (1,515) |
Inventories | 5,244 | (6,671) | (750) |
Prepaids and other current assets | (530) | 517 | (552) |
Increase (decrease) in: | |||
Accounts payable | 838 | 2,742 | 11,039 |
Accrued liabilities and other long-term liabilities | (452) | 2,817 | 1,072 |
Net cash provided by (used in) operating activities | 7,262 | 4,704 | 10,600 |
Cash flows (used in) from investing activities: | |||
Additions to property and equipment | (5,060) | (6,476) | (6,277) |
Proceeds from sale of assets (net of fees of $0.2 million) | 4,072 | ||
Other investing activities, net | (12) | (37) | (48) |
Net cash used in investing activities | (5,072) | (2,441) | (6,325) |
Cash flows (used in) provided by financing activities: | |||
Increase (decrease) in bank indebtedness | 8,712 | 1,043 | (4,821) |
Repayment of obligations under capital leases | (1,610) | (2,263) | (2,003) |
Proceeds from capital lease funding | 375 | 43 | 1,000 |
Proceeds from stock option exercise | 116 | ||
Payment of deferred financing fees and costs | (1,237) | (444) | (4,019) |
Repayment of long-term debt | (8,777) | (2,956) | (1,144) |
Increase in long-term debt | 2,500 | 6,828 | |
Other financing activities | (50) | (25) | (14) |
Net cash (used in) provided by financing activities | (2,587) | (2,102) | (4,057) |
Effect of exchange rate on cash | (3) | (173) | (190) |
Net increase (decrease) in cash and cash equivalents | (400) | (12) | 28 |
Cash and cash equivalents, beginning of year | 2,344 | 2,356 | 2,328 |
Cash and cash equivalents, end of year | 1,944 | 2,344 | 2,356 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 8,477 | 8,508 | 9,100 |
Non-cash transactions: | |||
Property and equipment additions acquired through capital leases | 376 | 43 | |
Property and equipment additions included in accounts payable and accrued liabilities | $ 1,078 | $ 1,055 | $ 580 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Statement of Cash Flows [Abstract] | |||
Payments for fees | $ 0.2 | $ 0.2 | $ 0.2 |
Basis of presentation
Basis of presentation | 12 Months Ended |
Mar. 25, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | 1. Basis of presentation: These consolidated financial statements, which include the accounts of the Canadian parent company Birks Group Inc. and its wholly owned subsidiary, Mayor’s Jewelers, Inc. (“Mayors”), are reported in U.S. dollars and in accordance with accounting principles generally accepted in the U.S. These principles require management to make certain estimates and assumptions that affect amounts reported and disclosed in the financial statements and related notes. The most significant estimates and judgments include assessing the valuation of inventories, accounts receivable, deferred tax assets, the recoverability of long-lived assets and the substantial doubt assessment of the going concern assumption. Actual results could differ from these estimates. Periodically, the Company reviews all significant estimates and assumptions affecting the financial statements relative to current conditions and records the effect of any necessary adjustments. All significant intercompany accounts and transactions have been eliminated upon consolidation. Future operations These financial statements have been prepared on a going concern basis in accordance with generally accepted accounting principles in the U.S. The going concern basis of presentation assumes that the Company will continue its operations for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company’s ability to fund its operations and meet its cash flow requirements in order to fund its operations is dependent upon its ability to maintain profitable operations as well as specified excess availability levels under its senior secured revolving credit facility and its senior secured term loan, and adhering to certain financial covenants described in note 7. The Company reported net income of $4.9 million and $5.4 million for fiscal 2017 and fiscal 2016, respectively. In fiscal 2015, the Company incurred a net loss of $8.6 million. Maintenance of sufficient availability of funding through an adequate amount of committed financing is necessary for the Company to fund its day-to-day The Company funds its operation primarily through committed financings under its senior secured credit facilities and term loans. The Company’s ability to fund its operations and meet its cash flow requirements is dependent upon its ability to maintain positive excess availability of at least $6.0 million under the senior secured revolving credit facility ($8.0 million prior to December 21, 2016). As of March 25, 2017, the Company had approximately $70.4 million outstanding on the $110.0 million senior secured revolving credit facility. The Company’s excess borrowing capacity was $14.6 million as of March 25, 2017 and $16.2 million as of March 26, 2016. The Company had positive excess availability of at least $6.0 million throughout fiscal 2017. As the Company is forecasting to have excess availability of at least $6.0 million for at least the next twelve months, it does not expect that the minimum adjusted EBITDA financial covenant will have to be tested. The senior secured revolving credit facility along with the senior secured term loan are used to finance working capital, finance capital expenditures, provide liquidity to fund our day-to-day As part of the amendments to the senior secured revolving credit facility and the senior secured term loan, the minimum excess availability levels required to be maintained by the Company has been reduced from $8.0 million to $6.0 million. The amendments to the senior secured revolving credit facility and the senior secured term loan also include a reduction to the minimum adjusted EBITDA levels and reduce the seasonal availability blocks imposed from December 20th to January 20th of each year from $12.5 million to $11.5 million and from January 21st to February 10th from $5.0 million to $4.0 million. Failure to meet the minimum adjusted EBITDA covenant (calculated on a twelve-month rolling basis as defined in the agreement) in the event that excess availability falls below $6.0 million for any five consecutive business days is considered an event of default under the amended agreements, that could result in the outstanding balances borrowed under the Company’s senior secured term loan and senior secured revolving credit facility becoming due immediately, which would result in cross defaults on the Company’s other borrowings. In addition, our senior secured revolving credit facility administrative agent may impose, at any time, discretionary reserves, which would lower the level of borrowing availability under our senior secured revolving credit facility (customary for asset-based loans) at their reasonable discretion to: i) ensure that we maintain adequate liquidity for the operation of our business, ii) cover any deterioration in the amount or value of the collateral, and iii) reflect impediments to the lenders to realize upon the collateral. There is no limit to the amount of discretionary reserves that the Company’s senior secured revolving credit facility administrative agent may impose at its reasonable discretion. No discretionary reserves were imposed during fiscal 2015, fiscal 2016 and fiscal 2017 by the Company’s senior secured revolving credit facility administrative agent. While the Company’s senior secured revolving credit facility lenders or their administrative agent have not historically imposed such a restriction, it is uncertain whether conditions could change and cause such a reserve to be imposed in the future. In addition, the value of the Company’s inventory and accounts receivables is periodically assessed by its senior secured lenders and based upon these reviews the Company’s borrowing capacity could be significantly increased or decreased. Another factor impacting the Company’s excess availability includes, among other things, changes in the U.S. and Canadian dollar exchange rate, which could increase or decrease the Company’s borrowing availability. As of March 25, 2017, every 100 basis point strengthening or weakening of the Canadian versus the U.S. dollar would cause an approximate $41,000 increase or decrease, respectively, in the amount of excess availability. The Company met its excess availability requirement as of March 25, 2017 and as of the date of its Form 20-F. Both the Company’s senior secured revolving credit facility and the senior secured term loan are subject to cross default provisions with all other loans pursuant to which if the Company is in default of any other loan, the Company will immediately be in default of both the senior secured revolving credit facility and the senior secured term loan. The Company continues to be actively engaged in identifying alternative sources of financing that include raising additional funds through public or private equity, the disposal of assets, and debt financing, including funding from governmental sources which may not be possible as the success of raising additional funds is beyond the Company’s control. The incurrence of additional indebtedness would result in increased debt service obligations and could result in operating and financing covenants that could restrict the Company’s operations. Financing may be unavailable in amounts or on terms acceptable to the Company or at all, which may have a material adverse impact on its business, including its ability to continue as a going concern. The Company believes that it will be able to adequately fund its operations and meet its cash flow requirements for at least the next twelve months. If the Company does not maintain positive excess availability under its senior secured revolving credit facilities and the lenders exercise their right to demand repayment of balances owed under these credit facilities, the Company may be unable to obtain additional financing. These financial statements do not reflect adjustments that would be necessary if the going concern assumption was not appropriate. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Mar. 25, 2017 | |
Accounting Policies [Abstract] | |
Significant accounting policies | 2. Significant accounting policies: (a) Revenue recognition: Sales are recognized at the point of sale when merchandise is picked up by the customer or delivered to a customer. Shipping and handling fees billed to customers are included in net sales. Revenues for gift certificate sales and store credits are recognized upon redemption. Prior to recognition as a sale, gift certificates are recorded as accounts payable on the balance sheet. Based on historical redemption rates, a portion of gift certificates and store credits, not subject to unclaimed property laws, are recorded as income. Gift certificates and store credits outstanding and subject to unclaimed property laws are maintained as accrued liabilities until remitted in accordance with local ordinances. Sales of consignment merchandise are recognized at such time as the merchandise is sold, and are recorded on a gross basis because the Company is the primary obligor of the transaction, has general latitude on setting the price, has discretion as to the suppliers, is involved in the selection of the product and has inventory loss risk. Sales are reported net of returns and sales taxes. The Company generally gives its customers the right to return merchandise purchased by them within 10 to 90 days, depending on the product sold and records a provision at the time of sale for the effect of the estimated returns. Revenues for repair services are recognized when the service is delivered to and accepted by the customer. Revenue related to the Company’s purchases of gold and other precious metals from our customers are recognized when the Company delivers the goods, and receives and accepts an offer from a refiner to purchase the gold and other precious metal. Licensing fees are recognized when the product is delivered to and accepted by the customer. (b) Cost of sales: Cost of sales includes direct inbound freight and duties, direct labor related to repair services, design and creative, the jewelry studio, inventory shrink, inventory thefts, and boxes (jewelry, watch and giftware). Indirect freight including inter-store transfers, purchasing and receiving costs, distribution costs and warehousing costs are included in selling, general and administrative expenses. Purchase discounts are recorded as a reduction of inventory cost and are recorded to cost of sales as the items are sold. Mark down dollars received from vendors are recorded as a reduction of inventory costs to the specific items to which they apply and are recognized in cost of sales once the items are sold. Included in cost of sales is depreciation related to manufacturing machinery, equipment and facilities of $31,000, $46,000 and $59,000 for the fiscal years ended March 25, 2017, March 26, 2016, and March 28, 2015, respectively. (c) Cash and cash equivalents: The Company utilizes a cash management system under which a book cash overdraft may exist in its primary disbursement account. These overdrafts, when applicable, represent uncleared checks in excess of cash balance in the bank account at the end of a reporting period and have been reclassified to accounts payable on the consolidated balance sheets. The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Amounts receivable from credit card issuers are included in cash and cash equivalents and are typically converted to cash within 2 to 4 days of the original sales transaction. These amounts totaled $1.9 million and $2.3 million at March 25, 2017 and March 26, 2016, respectively. (d) Accounts receivable: Accounts receivable arise primarily from customers’ use of our private label credit card and wholesale sales. Several installment sales plans are offered to our private label credit card holders which vary as to repayment terms and finance charges. Finance charges on the Company’s consumer credit receivables, when applicable, accrue at rates ranging from 0% to 10.99% per annum for financing plans. The Company maintains allowances for doubtful accounts associated with the accounts receivable recorded on the balance sheet for estimated losses resulting from the inability of its customers to make required payments. The allowance is determined based on a combination of factors including, but not limited to, the length of time that the receivables are past due, the Company’s knowledge of the customer, economic and market conditions and historical write-off The Company guarantees a portion of its private label credit card sales to its credit card vendor. The Company maintains a liability associated with these outstanding amounts. Similar to the allowance for doubtful accounts, the liability related to these guaranteed sales amounts are based on a combination of factors including the length of time the receivables are past due to the Company’s credit card vendor, the Company’s knowledge of the customer, economic and market conditions and historical write-off (e) Inventories: Retail inventories and inventories of raw materials are valued at the lower of average cost or market. Inventories of work in progress and Company manufactured finished goods are valued at the lower of average cost (which includes material, labor and overhead costs) or market. The Company records provisions for lower of cost or market, damaged goods, and slow-moving inventory. The cost of inbound freight and duties are included in the carrying value of the inventories. The allowance for inventory shrink is estimated for the period from the last physical inventory date to the end of the reporting period on a store by store basis and at our distribution centers. The shrink rate from the most recent physical inventory, in combination with historical experience, is the basis for providing a shrink allowance. Inventory is written down for estimated slow moving inventory equal to the difference between the cost of inventory and the estimated market value based on assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. (f) Property and equipment: Property and equipment are recorded at cost. Maintenance and repair costs are charged to selling, general and administrative expenses as incurred, while expenditures for major renewals and improvements are capitalized. Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the assets as follows: Asset Period Buildings Lesser of term of the lease or the economic life Leasehold improvements Lesser of term of the lease or the economic life Software and electronic equipment 1 - 6 years Molds 2 - 5 years Furniture and fixtures 5 - 8 years Equipment 3 - 8 years (g) Intangible assets: Trademarks and tradenames are amortized using the straight-line method over a period of 15 to 20 years. The Company had $1.8 million and $1.8 million of intangible assets at March 25, 2017 and March 26, 2016, respectively. The Company had $1.1 million and $1.0 million of accumulated amortization of intangibles at March 25, 2017 and March 26, 2016, respectively. (h) Deferred financing costs: The Company amortizes deferred financing costs incurred in connection with its financing agreements using the effective interest method over the term of the related financing. Such deferred costs are presented as a reduction to long-term debt in the accompanying consolidated balance sheets. (i) Warranty accrual: The Company generally provides warranties on its jewelry and watches for periods extending up to three years and has a battery replacement policy for its private label watches. The Company accrues a liability based on its historical repair costs for such warranties. (j) Income taxes: Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial statement reporting purposes and the bases for income tax purposes, and (b) operating losses and tax credit carryforwards. Deferred income tax assets are evaluated and, if realization is not considered to be more-likely-than-not, (k) Foreign exchange: Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange in effect at the balance sheet date. Non-monetary Birks Group’s Canadian operations’ functional currency is the Canadian dollar while the reporting currency of the Company is the U.S. dollar. The assets and liabilities denominated in Canadian dollars are translated for reporting purposes at exchange rates in effect at the balance sheet dates. Revenue and expense items are translated at average exchange rates prevailing during the periods. The resulting gains and losses are accumulated in other comprehensive income. (l) Impairment of long-lived assets: The Company periodically reviews the estimated useful lives of its depreciable assets and changes in useful lives are made on a prospective basis unless factors indicate the carrying amounts of the assets may not be recoverable and an impairment write-down is necessary. However, the Company will review its long-lived assets for impairment once events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss would be recognized when the estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition is less than its carrying value. Measurement of an impairment loss for such long-lived assets would be based on the difference between the carrying value and the fair value of the asset, with fair value being determined based upon discounted cash flows or appraised values, depending on the nature of the asset. Long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. During fiscal 2015, the Company recorded impairment charges on long-lived assets of $0.2 million associated with a Canadian Birks retail shop-in-shop (m) Advertising and marketing costs: Advertising and marketing costs are generally charged to expense as incurred and are included in selling, general and administrative expenses in the consolidated statements of operations. However, certain expenses such as those related to catalogs are expensed at the time such catalogs are shipped to recipients. The Company and its vendors participate in cooperative advertising programs in which the vendors reimburse the Company for a portion of certain specific advertising costs which are netted against advertising expense in selling, general and administrative expenses, and amounted to $2.6 million, $2.7 million and $2.9 million for each of the years ended March 25, 2017, March 26, 2016 and March 28, 2015, respectively. Advertising and marketing expense, net of vendor cooperative advertising allowances, amounted to $8.7 million, $9.0 million and $9.5 million in the years ended March 25, 2017, March 26, 2016 and March 28, 2015, respectively. (n) Restructuring charges: Restructuring charges consist of exit costs and other costs associated with the reorganization of the Company’s operations, including the consolidation of most of the Company’s administrative workforce from its regional office in Tamarac, Florida to its Montreal corporate head office. Restructuring charges include severance and stay bonuses for employees being terminated, sublease costs and related losses recognized related to the abandonment of a portion of the Company’s Tamarac facilities and other costs related to the transition of administrative positions to Montreal including employee recruitment costs, temporary duplication of salaries related to the transition and travel and relocation costs. Costs associated with restructuring activities are recorded when the liability is incurred or when such costs are deemed probable and estimable and represent the Company’s best estimate. (o) Pre-opening Pre-opening (p) Operating leases: Lessor incentive amounts on operating leases are deferred and amortized as a reduction of rent expense over the term of the lease. Rent expense is recorded on a straight-line basis, which takes into effect any rent escalations, rent holidays and fixturing periods. Deferred operating lease liabilities amounted to $5.0 million at March 25, 2017 ($4.4 million at March 26, 2016) presented as other long term liabilities. Lease terms are from the inception of the fixturing period until the end of the initial lease term and generally exclude renewal periods. However, renewal periods would be included in instances in which the exercise of the renewal period option would be reasonably assured and failure to exercise such option would result in an economic penalty. Contingent rent payments vary by lease, are based on a percentage of revenue above a predetermined sales level and are expensed when it becomes probable the sales levels will be achieved. This level is different for each location and includes and excludes various types of sales. (q) Earnings per common share: Basic earnings per share (“EPS”) is computed as net earnings divided by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the dilutive effect of the assumed exercise of stock options, warrants and equity settled stock appreciation rights. The following table sets forth the computation of basic and diluted earnings per common share for the years ended March 25, 2017, March 26, 2016 and March 28, 2015: Fiscal Year Ended March 25, 2017 March 26, 2016 March 28, 2015 (In thousands, except per share data) Basic income (loss) per common share computation: Numerator: Net income (loss) $ 4,928 $ 5,438 $ (8,632 ) Denominator: Weighted-average common shares outstanding 17,961 17,961 17,937 Income (loss) per common share $ 0.27 $ 0.30 $ (0.48 ) Diluted income (loss) per common share computation: Numerator: Net income (loss) $ 4,928 $ 5,438 $ (8,632 ) Denominator: Weighted-average common shares outstanding 17,961 17,961 17,937 Dilutive effect of stock options and warrants 457 — — Weighted-average common shares outstanding – diluted 18,418 17,961 17,937 Diluted income (loss) per common share $ 0.27 $ 0.30 $ (0.48 ) For the year ended March 25, 2017, the effect from the assumed exercise of 417,377 Class A voting shares underlying outstanding stock options and 382,693 Class A voting shares underlying outstanding warrants was excluded from the computation of diluted earnings per share due to their antidilutive effect. For the year ended March 26, 2016, the effect from the assumed exercise of 666,789 Class A voting shares underlying outstanding stock options and 382,693 Class A voting shares underlying outstanding warrants was excluded from the computation of diluted earnings per share due to their antidilutive effect. For the year ended March 28, 2015, the effect from the assumed exercise of 442,088 Class A voting shares underlying outstanding stock options and 382,693 Class A voting shares underlying outstanding warrants was excluded from the computation of diluted earnings per share due to their antidilutive effect. (r) Commodity and currency risk: The Company has exposure to market risk related to gold, silver, platinum and diamond purchases and foreign exchange risk. The Company may periodically enter into gold futures contracts to economically hedge a portion of these risks. During the years ended and as of March 25, 2017 and March 26, 2016, there were no such contracts outstanding. (s) Recent Accounting Pronouncements adopted during the year: In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU 2015-05 Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (an update to Subtopic 350-40, Internal-Use mid-market Up-front In August 2014, the FASB issued ASU 2014-15 Presentation of Financial Statements – Going Concern (t) Recent Accounting Pronouncement not yet adopted: In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606), In July 2015, the FASB issued ASU No. 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory first-in first-out In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842).” right-of-use right-of-use 2016-02 In June 2016, the FASB issued ASU 2016-13 Financial Instruments – Credit Losses (Topic 326) 2016-13 2016-13 In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230) zero-coupon 2016-15 |
Accounts receivable
Accounts receivable | 12 Months Ended |
Mar. 25, 2017 | |
Receivables [Abstract] | |
Accounts receivable | 3. Accounts receivable: Accounts receivable, net of allowance for doubtful accounts, at March 25, 2017 and March 26, 2016 consist of the following: As of March 25, 2017 March 26, 2016 (In thousands) Customer trade receivables $ 10,389 $ 8,041 Other receivables 3,172 2,252 $ 13,561 $ 10,293 Continuity of the allowance for doubtful accounts is as follows (in thousands): Balance March 29, 2014 $ 1,806 Additional provision recorded 613 Net write-offs (160 ) Balance March 28, 2015 2,259 Additional provision recorded 190 Net write-offs (294 ) Balance March 26, 2016 2,155 Additional provision recorded 845 Net write-offs (221 ) Balance March 25, 2017 $ 2,779 Certain sales plans relating to customers’ use of Mayors credit cards provide for revolving lines of credit and/or installment plans under which the payment terms exceed one year. The receivables repayable within a timeframe exceeding one year included under such plans, amounted to approximately $6.4 million and $5.0 million at March 25, 2017 and March 26, 2016, respectively, and are included in customer trade receivables. |
Inventories
Inventories | 12 Months Ended |
Mar. 25, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories: Inventories, net of obsolescence reserve, are summarized as follows: As of March 25, 2017 March 26, 2016 (In thousands) Raw materials $ 3,768 $ 4,301 Work in progress 49 95 Retail inventories and manufactured finished goods 128,252 133,443 $ 132,069 $ 137,839 Continuity of the obsolescence reserve for inventory is as follows (in thousands): Balance March 29, 2014 $ 2,514 Additional charges 1,545 Deductions (1,313 ) Balance March 28, 2015 2,746 Additional charges 626 Deductions (1,228 ) Balance March 26, 2016 2,144 Additional charges 496 Deductions (954 ) Balance March 25, 2017 $ 1,686 |
Property and equipment
Property and equipment | 12 Months Ended |
Mar. 25, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | 5. Property and equipment: The components of property and equipment are as follows: As of March 25, 2017 March 26, 2016 (In thousands) Land $ — $ 4,909 Buildings — 7,274 Leasehold improvements 37,114 36,550 Equipment 1,924 1,933 Molds 33 838 Furniture and fixtures 8,612 9,858 Software and electronic equipment 21,409 19,155 69,092 80,517 Accumulated depreciation (46,102 ) (51,098 ) $ 22,990 $ 29,419 The Company wrote off $8.2 million of gross fixed assets that were fully amortized during the year ended March 25, 2017 (March 26, 2016 - $10.4 million), mostly related to leasehold improvements. Property and equipment, having a cost of $1.9 million and a net book value of $1.1 million at March 25, 2017, and a cost of $12.1 million and a net book value of $8.4 million at March 26, 2016, are under capital leasing arrangements. |
Sale of assets
Sale of assets | 12 Months Ended |
Mar. 25, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of assets | 6. Sale of assets On August 4, 2015, the Company sold the assets of its corporate sales division to Rideau for $4.3 million. The disposal is consistent with the Company’s long-term strategy to concentrate on its retail operations and develop its Birks product brand through its current retail network, as well as internationally through other channels, and to concentrate the Company’s resources and efforts on its core activities. On August 4, 2015, the carrying amount of the major classes of assets that were sold was comprised primarily of inventory of $0.8 million, resulting in a gain on disposal of assets in the amount of approximately $3.2 million. Furthermore, as part of the agreement, the Company will supply Rideau, with Birks-branded time pieces and jewelry and will receive ongoing royalty payments from Rideau, related to future sales of all Birks-branded products. Rideau has agreed to purchase a minimum aggregate amount of $4.5 million for the first three years, and $2.0 million per year for each contract year thereafter for a period of 7 years. |
Bank indebtedness
Bank indebtedness | 12 Months Ended |
Mar. 25, 2017 | |
Debt Disclosure [Abstract] | |
Bank indebtedness | 7. Bank indebtedness: As of March 25, 2017 and March 26, 2016, bank indebtedness consisted solely of the Company’s senior secured revolving credit facility which had an outstanding balance of $70.4 million and $62.4 million, respectively. The senior secured revolving credit facility is collateralized by substantially all of the Company’s assets. Our excess borrowing capacity, which was above $6.0 million throughout fiscal 2017, was $14.6 million as of March 25, 2017 and $16.2 million as of March 26, 2016. The Company must maintain positive excess availability. In December 2016, the Company executed an amendment to the terms of its $110.0 million senior secured revolving credit facility to extend the maturity, which was set to expire on August 22, 2017. The term of the senior secured revolving credit facility now expires on the earlier to occur of (a) December 21, 2021 or (b) the date that is 91 days prior to the maturity date then in effect with respect to the senior secured term loan debt. The Company also executed an amendment to the terms of its senior secured term loan to extend the maturity from August 22, 2018 to May 21, 2021 and to reduce the senior secured term loan amount from $33.0 million to $28.0 million, with the $5.0 million reduction in the senior secured term loan borrowed under the senior secured revolving credit facility. In addition, as part of the amendments to the senior secured revolving credit facility and the senior secured term loan, the minimum excess availability levels required to be maintained by the Company has been reduced from $8.0 million to $6.0 million. The amendments to the senior secured revolving credit facility and the senior secured term loan also include a reduction to the minimum adjusted EBITDA levels and reduce the seasonal availability blocks imposed from December 20th to January 20th of each year from $12.5 million to $11.5 million and from January 21st to February 10th from $5.0 million to $4.0 million. Failure to meet the minimum adjusted EBITDA covenant in the event that availability falls below $6.0 million for any five consecutive business days is considered an event of default under the amended agreements, that could result in the outstanding balances borrowed under the Company’s senior secured term loan and senior secured revolving credit facility becoming due immediately, which would result in cross defaults on the Company’s other borrowings. The senior secured term loan is subordinated in lien priority to the senior secured revolving credit facility. These two credit facilities are used to finance working capital and capital expenditures, provide liquidity to fund the Company’s day-to-day The senior secured revolving credit facility also contains limitations on the Company’s ability to pay dividends, more specifically, among other limitations, the Company can pay dividends only at certain excess borrowing capacity thresholds and the aggregate dividend payment for the twelve-month period ended as of any fiscal quarter cannot exceed 33% of the consolidated net income for such twelve-month period. Additionally, the Company is required to maintain a fixed charge coverage ratio of at least 1.30 to 1.00 and a minimum excess availability of $30 million in order to qualify for payment of dividends. Besides these financial covenants related to paying dividends, the terms of this facility provide that no financial covenants are required to be met other than already described. The information concerning the Company’s senior secured credit facility is as follows: Fiscal Year Ended March 25, 2017 March 26, 2016 (In thousands) Maximum borrowing outstanding during the year $ 83,615 $ 78,137 Average outstanding balance during the year $ 71,750 $ 68,205 Weighted average interest rate for the year 3.2 % 3.2 % Effective interest rate at year-end 3.0 % 3.3 % As security for the bank indebtedness, the Company has provided some of its lenders the following: (i) general assignment of all accounts receivable, other receivables and trademarks; (ii) general security agreements on all of the Company’s assets; (iii) insurance on physical assets in a minimum amount equivalent to the indebtedness, assigned to the lenders; (iv) a mortgage on moveable property (general) under the Civil Code (Québec) of $188,395,000 (CAD$250,000,000); (v) lien on machinery, equipment and molds and dies; and (vi) a pledge of trademarks and stock of the Company’s subsidiaries. |
Long-term debt
Long-term debt | 12 Months Ended |
Mar. 25, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | 8. Long-term debt: (a) Long-term debt consists of the following: As of March 25, 2017 March 26, 2016 (In thousands) Senior secured term loans that are subordinated in lien priority to the Company’s senior secured revolving credit facility. The loan bears interest at an annual rate of LIBOR plus 9.75% on $28 million of debt. $5 million was repaid in December 2016. The term of the loan expires in May 2021. $ 26,952 $ 32,186 Term loan from Investissement Quebec, bearing interest at an annual rate of Canadian prime plus 7.0%, repayable beginning in October 2014 in 60 equal monthly principal payments of $62,314 (CAD$83,333), secured by the assets of the Company. The balance at March 25, 2017 and March 26, 2016 was CAD$2.9 million and CAD$3.7 million, respectively (b). 2,141 2,786 Term loan from Investissement Québec, bearing interest at an annual rate of Canadian prime plus 5.5%, repayable beginning in April 2012 in 48 equal monthly capital repayments of $155,786 (CAD$208,333), secured by the assets of the Company. The balance at March 25, 2017 and March 26, 2016 was CAD$1.0 million and CAD$3.1 million, respectively (b). 779 2,355 Term loan from Investissement Québec, bearing interest at an annual rate of Canadian prime plus 10%, repayable beginning in August 2015 in 48 equal monthly principal payment of $31,157 (CAD$41,667), secured by the assets of the Company. The balance at March 25, 2017 and March 26, 2016 was CAD$1.4 million and 1.8 million respectively (b) 1,061 1,383 Obligations under capital leases, at annual interest rates between 3.6% and 14.9%, secured by leasehold improvements, furniture, and equipment, maturing at various dates to March 2021. 902 1,719 Cash advance provided by the Company’s controlling shareholder, Montrovest, bearing interest at an annual rate of 11%, net of withholding taxes (note 16(c)) 1,500 1,500 Senior secured term loan that is subordinated in lien priority to the Company’s senior secured revolving credit facility. The loan bore interest at an annual rate of LIBOR plus 9.75%. The loan was repaid in May 2016. — 1,215 Obligation under capital lease on land and building, pursuant to a sale-leaseback transaction. This obligation was terminated in November 2016 upon the sale of the Montreal head-office building. The balance at March 25, 2017 and March 26, 2016 was nil and CAD$12.1 million, respectively (f). — 9,141 33,335 52,285 Current portion of long-term debt 2,810 5,634 $ 30,525 $ 46,651 (b) In November 2015, the Company amended the monthly capital requirements amounts of all term loans with Investissement Québec in order to reduce its short-term capital requirements. The impact of the amendment on the first twelve months following the effective date of the amendment translates to a reduction of CAD$2 million (approximately $1.5 million in U.S. dollars) of the monthly capital requirements. This amendment was agreed to by the senior secured lenders. The term loans with Investissement Québec require the Company on an annual basis to have a working capital ratio of at least 1.15. Up until October 28, 2016, Investissement Québec also required the Company to maintain an adjusted long-term debt to adjusted net assets ratio below 2.5 on an annual basis, at which date Investissement Québec removed this covenant. On each of June 26, 2015 and March 7, 2016, the Company obtained a waiver from Investissement Québec with respect to the requirement to meet the adjusted long-term debt to adjusted net assets ratio for fiscal 2016 and fiscal 2015, respectively. The Company was in compliance with the working capital ratio as of March 25, 2017. (c) Future minimum lease payments for capital leases required in the following five years and thereafter are as follows (in thousands): Year ending March: 2018 $ 592 2019 125 2020 92 2021 92 2022 67 Thereafter — 968 Less imputed interest 66 $ 902 (d) Principal payments on long-term debt required in the following five years and thereafter, including obligations under capital leases, are as follows (in thousands): Year ending March: 2018 $ 2,810 2019 1,191 2020 712 2021 27,057 2022 65 Thereafter 1,500 $ 33,335 (e) As of March 25, 2017 and March 26, 2016, the Company had $0.9 million and $1.0 million, respectively, of outstanding letters of credit which were provided to certain lenders. (f) In December 2000, the Company entered into a capital lease agreement for the Company’s Montreal head office and store pursuant to which the Company sold and leased back the building, including the Montreal flagship store, for a term of 20 years ending December 11, 2020. The net annual rental rate was CAD$2.2 million (approximately $1.6 million U.S. dollars) for the period that ended on December 11, 2016. On November 1, 2016, the Company entered into an agreement with the new owner of the building to terminate the existing lease agreement for the building in advance of its expiry date in December 2020 and to lease the premises for the Company’s flagship store at its current location, which is an operating lease. As a result, a capital lease asset of CAD $8.7 million (approximately $6.5 million in U.S. dollars) and a capital lease obligation of CAD $11.6 million (approximately $8.7 million in U.S. dollars) at November 1, 2016 were derecognized and a non-cash |
Benefit plans and stock-based c
Benefit plans and stock-based compensation | 12 Months Ended |
Mar. 25, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Benefit plans and stock-based compensation | 9. Benefit plans and stock-based compensation: (a) Stock option plans and arrangements: (i) The Company can issue stock options, SARs, deferred share units and restricted stock units to executive management, key employees and directors under the following stock-based compensation plans. The Company has a Long-Term Incentive Plan under which awards may be made in order to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to employees and to promote the success of the Company. Any employee or consultant selected by the administrator is eligible for any type of award provided for under the Long-Term Incentive Plan, except that incentive stock options may not be granted to consultants. The Long-Term Incentive Plan provided for the grant of units and performance units or share awards. As of March 25, 2017, there were 128,000 cash-based stock appreciation rights that were exercisable under the Long-Term Incentive Plan. The stock appreciation rights outstanding under the Long-Term Incentive Plan have a weighted average exercise price of $1.33. As of March 25, 2017, there were stock options to purchase 650,000 Class A voting shares outstanding under the Long-Term Incentive Plan. During fiscal 2017 no stock options were issued under the Long-Term Incentive Plan. During fiscal 2016, stock options to purchase 235,000 shares of the Company’s Class A voting shares were issued with a three year vesting period, with an average exercise price of $0.78, and an expiration date of 10 years after the grant date. The weighted-average grant-date fair value of the options granted during fiscal 2016 was $0.69. The fair value of the newly issued options in fiscal 2016 was calculated as of the date of their grant, using the Black-Scholes option pricing model with the following weighted-average assumptions: Dividend yield – 0%; Expected volatility – 95.3%; Risk-free interest rate – 2.3%; and expected term in years – 10 years. The outstanding options as of March 25, 2017 had no intrinsic value. The unrecognized compensation related to the non-vested On August 15, 2016, the Board of Directors adopted the Company’s Omnibus Long-Term Incentive Plan (the “Omnibus LTIP”), and same was approved by the Company’s shareholders on September 21, 2016. Further to the Omnibus LTIP, the Company’s directors, officers, senior executives and other employees of the Company or one of its subsidiaries, consultants and service providers providing ongoing services to the Company and its affiliates may from time-to-time non-vested The Company has outstanding employee stock options issued under the Birks Employee Stock Option Plan (the “Birks ESOP”). Effective November 15, 2005, no awards are permitted to be granted under the Birks ESOP. However, the Birks ESOP will remain in effect until the outstanding awards issued under the plan terminate or expire by their terms. In March 2010, the Company offered employees who held options under this plan the right to amend their current options. The amended options terms would be consistent with the original grant except that the new options would have a lower exercise price, be exercisable for a lesser number of the Company’s Class A voting shares, have a new ten-year The following is a summary of the activity of Birks’ stock option plans and arrangements. Options Weighted average Outstanding March 29, 2014 664,585 $ 1.21 Granted 50,000 1.94 Exercised (111,372 ) 1.04 Expired (15,000 ) 7.73 Forfeited (147,051 ) 1.10 Outstanding March 28, 2015 441,162 1.15 Granted 235,000 0.78 Forfeited (10,000 ) 1.10 Outstanding March 26, 2016 666,162 1.02 Granted 218,000 1.43 Forfeited (10,000 ) 0.78 Outstanding March 25, 2017 874,162 $ 1.13 A summary of the status of Birks’ stock options at March 25, 2017 is presented below: Options outstanding Options exercisable Exercise price Number Weighted Weighted Number Weighted $ 0.78 225,000 8.5 $ 0.78 74,996 $ — $ 0.84 100,000 6.1 0.84 100,000 0.84 $ 0.89 55,000 5.6 0.89 55,000 0.89 $ 1.04-1.05 156,162 4.7 1.04 156,162 1.04 $ 1.25-1.66 70,000 5.2 1.48 70,000 1.48 $ 1.43 218,000 9.7 1.43 — — $ 1.94 50,000 7.8 1.94 33,333 1.94 874,162 8.2 $ 1.13 489,491 $ 1.07 (ii) Under plans approved by the former Board of Directors of Mayors, the Company has outstanding stock options issued to employees and members of the Company’s Board of Directors. No further awards will be granted under these plans. As of March 25, 2017, there are 627 options outstanding with a weighted average remaining estimated life of 4 years. No compensation expense was required to be recorded related to the options outstanding under this program for the years ended March 25, 2017, March 26, 2016, and March 28, 2015, respectively. The following is a summary of the activity of Mayors stock option plans: Options Weighted average Outstanding March 29, 2014 3,836 $ 5.19 Expired (2,910 ) 6.51 Outstanding March 28, 2015 926 1.05 Expired (299 ) 1.05 Outstanding March 26, 2016 and March 25, 2017 627 1.05 A summary of the status of the option plans at March 25, 2017 is presented below: Exercise price Options outstanding and exercisable Number Weighted average Weighted average $ 1.05 627 3.1 $ 1.05 (iii) The Company issues new shares to satisfy share-based awards and exercise of stock options. During fiscal 2017, 2016, and 2015, respectively, no cash was used to settle equity instruments granted under share-based payment arrangements. (b) As of March 25, 2017, the Company had outstanding warrants exercisable into 382,693 shares of the Company’s Class A voting shares. These warrants have a weighted average exercise price of $3.42 per share and expire on August 20, 2022. As of November 1, 2005, these awards were fully vested and no additional compensation expense will be recognized. (c) Restricted stock units and deferred share unit plans: On November 15, 2016, the Company issued 121,500 cash settled restricted stock units (RSU) to members of senior management under the Omnibus LTIP. These units vest after three years and expire one month following the vesting date.. The Company also issued 55,944 cash settled deferred share units (DSU) to members of the board of directors. These units vest immediately upon the date the member ceases being a director and expire on December 31 of the following year. Compensation expense is recognized using the fair market value at the date of grant and recorded rateably over the vesting period. The liability will be re-measured (d) Employee stock purchase plan: The Company has an Employee Stock Purchase Plan (“ESPP”) that permits eligible employees, which does not include executives of the Company, to purchase the Company’s Class A voting stock at 85% of the Class A voting shares fair market value through regular payroll deductions. A total of 100,000 shares of the Company’s Class A voting shares are reserved for issuance under the ESPP. As of March 25, 2017, 99,995 Class A voting shares were outstanding under the ESPP and no additional shares will be issued under this plan. No shares were issued under the ESPP in fiscal 2017, 2016, and 2015. (e) Profit sharing plan: Mayors has a 401(k) Profit Sharing Plan & Trust (the “Plan”), which permits eligible employees to make contributions to the Plan on a pretax salary reduction basis in accordance with the provisions of Section 401(k) of the Internal Revenue Code. Mayors historically made cash contributions of 25% of the employee’s pretax contribution, up to 4% of Mayors employee’s compensation, in any calendar year. Effective January 1, 2009, the Company exercised its right to cancel all future matching contributions to the Plan and as such, no additional matching cash payments were made to the Plan during fiscal 2017, 2016, and 2015. (f) CEO and Senior Executive Long-Term Cash Incentive Plans: During the year ended March 30, 2013, the Board of Directors approved the long-term cash incentive plans (“LTCIPs”) for the Chief Executive Officer and certain executive officers. The intention of the LTCIPs was to reward the Chief Executive Officer and other members of senior management based on the performance of the Company over three-year cycles, the first of which began with the fiscal 2013 through fiscal 2015 period. The approval of a new three-year cycle was at the discretion of the Board of Directors on recommendation of the compensation committee. The payouts under the LTCIPs was to be based on the earnings before taxes (“EBT”) performance of the Company with the payout level earned during the three-year period either increasing or decreasing based on the Company’s EBT performance levels versus thresholds established in each of the three years of the three-year cycle and afterwards, if the LTCIPs were continued. The Company was to pay out a third of the LTCIPs value earned at the end of the first three year cycle and a third of the LTCIPs value for every year thereafter, subject to the Chief Executive Officer and participating executives continued employment and subject to the payment not causing any default on the Company’s credit facilities. The LTCIPs payouts will continue to rise or fall based on the Company’s performance each year. The total LTCIPs pool was only created to compensate if EBT was above a certain growth rate and the payout was capped so that the total three-year costs of the programs combined did not exceed 10% of the Company’s total earnings before taxes for the three-year period. Participation in the first three-year cycle was limited to the Company’s Chief Executive Officer and its two Senior Executives. The target incentive compensation level for the fiscal 2013 to 2015 LTCIPs cycle was $2,067,000 with a total payout capped at 200 percent above this targeted incentive compensation level irrespective of the earnings before taxes generated above these levels by the Company. The Company did not meet the EBT threshold established by the plan and accordingly, no liability or expense related to this plan was recorded and no new three-year cycles have been approved by the Board of Directors related to this plan. (g) CEO Long-term Cash Incentive Plan: In April 2015, the Company’s Board of Directors approved a long-term cash incentive plan for the Chief Executive Officer (“CEO LTCIP”). The intention of the CEO LTCIP is to reward the Chief Executive Officer based on the Company’s performance over three-year cycles, the first of which begins with the fiscal 2016 through fiscal 2018 period. The approval of this three-year cycle is at the discretion of the Board of Directors on recommendation of the Compensation Committee. The CEO LTCIP is structured to fund a pool of dollars based on the successful achievement of earnings before tax (“EBT”) and the level of achievement of three key metrics that can modify the amount achieved based on EBT over three one-year |
Income taxes
Income taxes | 12 Months Ended |
Mar. 25, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 10. Income taxes: (a) The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of March 25, 2017, the Company had no accrued interest or penalties related to uncertain tax positions due to available tax loss carry forwards. The tax years 2011 through 2017 remain open to examination by the major taxing jurisdictions to which the Company is subject. The Company evaluates its deferred tax assets to determine if any adjustments to its valuation allowances are required. As part of this analysis, the Company could not reach the required conclusion that it would be able to more likely than not realize the value of both its U.S. and Canadian net deferred tax assets in the future. As a result, the Company has a non-cash In fiscal 2017, the Company reversed a net valuation allowance of $5.3 million related to Mayors on the basis of management’s reassessment of the amount of deferred tax assets that are more likely than not to be realized in the foreseeable future (1 to 3 years). As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. As of March 25, 2017 Mayors has three years of cumulative pre-tax The significant items comprising the Company’s net deferred tax assets at March 25, 2017 and March 26, 2016 are as follows: Fiscal Year Ended March 25, 2017 March 26, 2016 (In thousands) Deferred tax assets: Loss and tax credit carry forwards $ 44,296 $ 39,710 Difference between book and tax basis of property and equipment 4,951 2,731 Interest expense limitations carry forward 7,190 10,697 Inventory allowances 383 417 Other reserves not currently deductible 1,045 807 Capital lease obligation — 2,431 Expenses not currently deductible 776 667 Other (27 ) (175 ) Net deferred tax asset before valuation allowance 58,614 57,285 Valuation allowance (53,311 ) (57,285 ) Net deferred tax asset $ 5,303 $ — The Company’s income tax expense (benefit) consists of the following components: Fiscal Year Ended March 25, 2017 March 26, 2016 March 28, 2015 (In thousands) Income tax expense (benefit): Current $ 26 $ 50 $ 77 Deferred 550 1,591 (2,636 ) Valuation allowance (5,853 ) (1,591 ) 2,559 Income tax expense $ (5,277 ) $ 50 $ — The Company’s current tax payable at March 25, 2017 was $(140,000), $35,000 for March 26, 2016, and nil for March 28, 2015. The Company’s provision for income taxes varies from the amount computed by applying the statutory income tax rates for the reasons summarized below: Fiscal Year Ended March 25, 2017 March 26, 2016 March 28, 2015 Canadian statutory rate $ (93 ) $ 1,460 $ (2,275 ) Rate differential for U.S. operations 545 358 (443 ) Utilization of unrecognized losses and other tax attributes (7,404 ) (1,768 ) — Valuation allowance on deferred tax assets 1,538 177 2,636 Permanent differences and other 137 (177 ) 82 Total $ (5,277 ) $ 50 $ — (b) At March 25, 2017, the Company had federal non-capital (c) As of March 25, 2017, Mayors and another of the Company’s US subsidiary have federal and state net operating loss carry forwards in the U.S. of approximately $106 million and $92.2 million, respectively. Due to Section 382 limitations from the change in ownership for the year ended March 29, 2003, the utilization of approximately $35.3 million of the pre-acquisition |
Capital stock
Capital stock | 12 Months Ended |
Mar. 25, 2017 | |
Equity [Abstract] | |
Capital stock | 11. Capital stock: Authorized capital stock of the Company consists of an unlimited number of no par value preferred shares and two classes of common stock outstanding: Class A and Class B. Class A voting shares receive one vote per share. The Class B multiple voting shares have substantially the same rights as the Class A voting shares except that each share of Class B multiple voting shares receives 10 votes per share. The issued and outstanding shares are as follows: Class A common stock Class B common stock Total common stock Number Amount Number Amount Number Amount Balance as of March 28, 2015 10,242,911 $ 30,988 7,717,970 $ 38,613 17,960,881 $ 69,601 Exercise of stock options — — — — — — Balance as of March 26, 2016 10,242,911 $ 30,988 7,717,970 $ 38,613 17,960,881 $ 69,601 Exercise of stock options — — — — — — Balance as of March 25, 2017 10,242,911 $ 30,988 7,717,970 $ 38,613 17,960,881 $ 69,601 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Mar. 25, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | 12. Restructuring Charges: In July 2014, the Company provided to its senior secured lenders and announced an operational restructuring plan to reduce corporate overhead costs, improve profitability and drive efficiency within the organization. The restructuring plan included consolidating most of its corporate administrative workforce from its regional office in Tamarac, Florida to its Montreal corporate head office as well as the outsourcing of a portion of the Company’s jewelry manufacturing and other corporate office staff reductions. In February 2017, the Company began the second phase of the operational restructuring plan, incurring restructuring charges of approximately $0.8 million in fiscal 2017 primarily associated with severance, as the Company eliminated certain corporate administrative positions to further increase efficiency. During fiscal 2016, the Company recorded $0.8 million of restructuring charges. These charges were primarily associated with severance and temporary duplication of salaries during the transition of positions from Tamarac to Montreal. During fiscal 2015, the Company recorded $2.6 million of restructuring charges. These charges included $1.4 million of severance and employee retention related charges and $0.6 million of transition-related charges associated with the consolidation of positions to Montreal including temporary duplication of salaries during the transition, recruitment costs for positions transferred to Montreal and travel and relocation costs. Restructuring charges also included the recording of a $0.5 million loss on the sublet of a portion of the Tamarac facility and $0.1 million of commission costs associated with the sublease agreement. As of March 25, 2017, accounts payable and accrued liabilities related to these restructuring charges were nil (March 26, 2016 - $0.3 million) and cash paid during fiscal 2017 for such charges was $0.8 million (fiscal 2016 - $1.8 million). |
Commitments
Commitments | 12 Months Ended |
Mar. 25, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | 13. Commitments: Operating leases: The Company leases all of its retail stores under operating leases. The rental costs are based on minimum annual rentals and for some of the stores, a percentage of sales. Such percentage of sales varies by location. In addition, most leases are subject to annual adjustments for increases in real estate taxes and common area maintenance costs. The Company also has operating leases for certain equipment. Future minimum lease payments for the next five years and thereafter are as follows (in thousands): Year ending March: 2018 $ 14,924 2019 14,515 2020 14,221 2021 12,674 2022 12,145 Thereafter 42,799 $ 111,278 Rent expense for the Company was approximately $23.2 million, including $0.8 million of contingent rent for the year ended March 25, 2017, $21.8 million, including $0.5 million of contingent rent for the year ended March 26, 2016 and $23.4 million, including $0.7 million of contingent rent for the year ended March 28, 2015. |
Contingencies
Contingencies | 12 Months Ended |
Mar. 25, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 14. Contingencies: (a) The Company and its subsidiaries, in the normal course of business, become involved from time to time in litigations and claims. While the final outcome with respect to claims and legal proceedings pending at March 25, 2017 cannot be predicted with certainty, management believes that adequate provisions have been recorded in the accounts where required and that the financial impact, if any, from claims related to normal business activities will not be material. (b) From time to time, the Company guarantees a portion of its private label credit card sales to its credit card vendor. At March 25, 2017 and March 26, 2016, the amount guaranteed under such arrangements was approximately $8.4 million and $9.3 million, respectively. At March 25, 2017 and March 26, 2016, the Company has recorded in accrued liabilities a reserve of $0.5 million and $0.5 million, respectively, associated with this guaranteed amount. |
Segmented information
Segmented information | 12 Months Ended |
Mar. 25, 2017 | |
Segment Reporting [Abstract] | |
Segmented information | 15. Segmented information: The Company has two reportable segments Retail and Other. As of March 25, 2017, Retail operated 26 stores across Canada under the Birks brand, and 17 stores in the Southeastern U.S. under the Mayors brand, 1 store under the Rolex brand name in Orlando, as well as 2 retail locations in Calgary and Vancouver under the Brinkhaus brand. Other consists primarily of our e-commerce The two segments are managed and evaluated separately based on gross profit. The accounting policies used for each of the segments are the same as those used for the consolidated financial statements. Inter-segment sales are made at amounts of consideration agreed upon between the two segments and intercompany profit is eliminated if not yet earned on a consolidated basis. The Company does not evaluate the performance of the Company’s assets on a segment basis for internal management reporting and, therefore, such information is not presented. Certain information relating to the Company’s segments for the years ended March 25, 2017, March 26, 2016, and March 28, 2015, respectively, is set forth below: Retail Other Total 2017 2016 2015 2017 2016 2015 2017 2016 2015 (In thousands) Sales to external customers $ 283,807 $ 281,940 $ 293,146 $ 3,114 $ 3,886 $ 8,491 $ 286,921 $ 285,826 $ 301,637 Inter-segment sales — — — 13,586 14,002 15,891 13,586 14,002 15,891 Unadjusted Gross profit 108,487 110,023 118,128 1,062 2,691 5,390 109,549 112,714 123,518 The following sets forth reconciliations of the segments’ gross profits and certain unallocated costs to the Company’s consolidated gross profits for the years ended March 25, 2017, March 26, 2016, and March 28, 2015: Fiscal Year Ended March 25, 2017 March 26, 2016 March 28, 2015 (In thousands) Unadjusted gross profit $ 109,549 $ 112,714 $ 123,518 Inventory provisions (1,250 ) (2,084 ) (3,151 ) Other unallocated costs (177 ) (1,630 ) (2,551 ) Adjustment of intercompany profit 312 387 (11 ) Gross profit $ 108,434 $ 109,387 $ 117,805 Sales to external customers and long-lived assets by geographical areas were as follows: Fiscal Year Ended March 25, 2017 March 26, 2016 March 28, 2015 (In thousands) Geographic Areas Net sales: Canada $ 116,436 $ 128,651 $ 143,384 United States 170,485 157,175 158,253 $ 286,921 $ 285,826 $ 301,637 Long-lived assets: Canada $ 13,921 $ 18,610 $ 17,072 United States 9,259 11,302 11,957 $ 23,180 $ 29,912 $ 29,029 Classes of Similar Products Net sales: Jewelry and other $ 122,405 $ 127,220 $ 141,781 Timepieces 164,516 158,606 159,856 $ 286,921 $ 285,826 $ 301,637 |
Related party transactions
Related party transactions | 12 Months Ended |
Mar. 25, 2017 | |
Related Party Transactions [Abstract] | |
Related party transactions | 16. Related party transactions: (a) The Company is party to certain related party transactions. Balances related to these related parties are disclosed in the consolidated financial statements except the following: Fiscal Year Ended March 25, 2017 March 26, 2016 March 28, 2015 (In thousands) Transactions: Purchases of inventory from supplier related to shareholder (d) $ — $ 503 $ 189 Management fees to related parties (b) 154 155 238 Consultant fees to a related party (e) 150 173 175 Expense reimbursement to a related party (f) 178 201 241 Interest expense on cash advance received from controlling shareholder (c) 165 165 165 Compensation paid to a related party (h) 67 — 136 Balances: Accounts payable to supplier related to shareholder (d) — 17 — Accounts payable to related parties 57 38 447 Interest payable on cash advance received from controlling shareholder 24 25 136 (b) On June 8, 2011, the Board of Directors approved the Company entering into a Management Consulting Service Agreement with Montrovest. Under the agreement, the Company paid Montrovest an annual retainer fee of €140,000 in exchange for services related to the raising of capital for international expansion projects and such other services relating to merchandising and/or marketing of the Company’s products as the Company may request. The agreement was in effect until June 8, 2012 and was extended automatically for successive terms of one year unless either party gave a 60 days’ notice of its intention not to renew. The yearly renewal of the agreement is subject to the review and approval of the Company’s Corporate Governance Committee and the Board of Directors. In fiscal 2017, fiscal 2016 and fiscal 2015, the Company paid nil, €105,000 and €140,000 respectively (approximately nil, $116,000 and $178,000 in U.S. dollars, respectively), under this agreement to Montrovest. In April 2015, the agreement was renewed for an additional one-year (c) In February 2009 and May 2009, the Company received a $2.0 million and a $3.0 million, respectively, cash advance from its controlling shareholder, Montrovest, to finance working capital needs and for general corporate purposes. These advances and any interest thereon are subordinated to the indebtedness of the Company’s existing senior credit facilities and secured term loans and were convertible into a convertible debenture or Class A voting shares in the event of a private placement or repayable upon demand by Montrovest once conditions stipulated in the Company’s senior credit facilities permit such a payment. The cash advance bore interest at an annual rate of 16%, net of any withholding taxes, representing an effective interest rate of approximately 17.8%. If converted into convertible debentures or Class A voting shares, a fee of 7% of the outstanding principal amount of the cash advance would have been paid to Montrovest. In June 2011, the Company amended its cash advance agreements with Montrovest. Under the terms of the amended agreements, the annual interest rate on the $5.0 million in cash advances outstanding was reduced from 16%, net of withholding taxes to 11%, net of withholding taxes representing an effective interest rate of approximately 12.2%. The amended agreements eliminated the convertibility of the cash advances into convertible debentures or Class A voting shares in the event of a private placement and also eliminated the payment of a 7% fee if the debt was converted into convertible debentures or Class A voting shares. The Company also amended its management subordination agreement with Montrovest and its senior lenders, eliminating the payment of any success fee to Montrovest if the Company receives net cash proceeds of $5 million or more related to an equity issuance. The Company paid a one-time (d) In August 2002, the Company entered into a Diamond Inventory Supply Agreement with Prime Investments S.A. and a series of conditional sale agreements with companies affiliated with Prime Investments S.A. pursuant to which Prime Investments S.A. or a related party is entitled to supply Birks and its subsidiaries or affiliates with at least 45%, on an annualized cost basis, of such company’s aggregate loose diamond requirements, conditional upon the prices remaining competitive relative to market and needs in terms of quality, cut standards and specifications being satisfied. During fiscal 2017, the Company purchased approximately nil ($0.5 million in fiscal 2016, $0.2 million in fiscal 2015 and nil in fiscal 2014), of diamonds from Prime Investments S.A. and related parties. As of March 26, 2016, Asiya Trust, as trustee of Beech Settlement Trust, which is the ultimate beneficial owner of Prime Investments S.A., owned 15.0% of the Company’s outstanding Class A voting shares. During fiscal 2017, Asiya Trust disposed of their shares to third parties. (e) On June 30, 2009, the Company’s Board of Directors approved the Company entering into a consulting services agreement with Gestofi S.A. (“Gestofi”) in accordance with the Company’s Code of Conduct relating to related party transactions. Under the agreement, Gestofi undertook to assign Mr. Niccolò Rossi di Montelera as the employee of Gestofi responsible for providing the consulting services. The consulting services relate to providing advice and assistance in (i) new product development and product brand collection assortment, (ii), strategic and business development projects and financial matters, (iii) the implementation of the Company’s strategy and planning, and (iv) such other services reasonably requested by the Company’s Chief Executive Officer or Chairman (collectively, the “Consulting Services”). The initial one-year one-year one-year one-year Additionally, the Company also entered into a consulting services agreement with Gestofi for the services of Dr. Lorenzo Rossi di Montelera, Birks Group’s former Chairman and a director and chairman of the board of Gestofi. The agreement expires in September 2017. In fiscal 2017, the Company paid $16,666 in relation to this agreement. (f) In accordance with the Company’s Code of Conduct related to related party transactions, in April 2011, the Corporate Governance Committee and Board of Directors approved the reimbursement of expenses to Regaluxe S.R.L., such as rent, communication, administrative support and analytical service costs, incurred in supporting the office of Dr. Lorenzo Rossi di Montelera, the Company’s Chairman of the Board of Directors, and of Mr. Niccolò Rossi di Montelera, the Chairman of the Company’s Executive Committee, for work performed on behalf of the Company, up to a yearly maximum of $250,000. The yearly maximum was increased to $260,000 in fiscal 2014. During fiscal 2017, 2016, and 2015, the Company paid $178,000, $201,000 and $241,000, respectively, to Regaluxe under this agreement, respectively. This agreement was renewed in March 2017 for an additional one year term. (h) Effective January 1, 2017, the Company agreed to total annual compensation of €250,000 with Mr. Niccolò Rossi di Montelera in connection with his appointment as Executive Chairman of the Board and Chairman of the Executive Committee. In fiscal 2017, the Company paid $67,000 in connection with this agreement. |
Financial instruments
Financial instruments | 12 Months Ended |
Mar. 25, 2017 | |
Investments, All Other Investments [Abstract] | |
Financial instruments | 17. Financial instruments: (a) Concentrations: During the years ended March 25, 2017, March 26, 2016, and March 28, 2015, approximately 42%, 39% and 36%, respectively, of consolidated sales were of merchandise purchased from the Company’s largest supplier. (b) Fair value of financial instruments: Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. U.S. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. U.S. GAAP prescribes three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 1 inputs are considered to carry the most weight within the fair value hierarchy due to the low levels of judgment required in determining fair values. Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3- The Company has determined that the carrying value of its cash and cash equivalents, accounts receivable and accounts payable and accrued liabilities approximates fair values as at the balance sheet date. As of March 25, 2017 and March 26, 2016, for the $70.4 million and $62.4 million, respectively, of bank indebtedness and the $30.9 million and $40.0 million, respectively of long-term debt bearing interest at variable rates, the fair value is considered to approximate the carrying value. As of March 25, 2017 and March 26, 2016, the fair value of the remaining $2.4 million and $12.4 million, respectively of fixed-rate long-term debt is estimated to be approximately $2.3 million and $12.9 million, respectively. The fair value was determined by discounting the future cash flows of each instrument at the current market interest rates for the same or similar debt instruments with the same remaining maturities adjusted for all necessary risks, including its own credit risk. In determining an appropriate spread to reflect its credit standing, the Company considered interest rates currently offered to the Company for similar debt instruments of comparable maturities by the Company’s lenders. As a result, the Company has determined that the inputs used to value these long-term debts fall within Level 3 of the fair value hierarchy. |
Subsequent events
Subsequent events | 12 Months Ended |
Mar. 25, 2017 | |
Subsequent Events [Abstract] | |
Subsequent events | 18. Subsequent events: The Company entered into a financing agreement effective May 11, 2017 with a new lender for a credit facility of up to $4.75 million of lease financing relating to certain equipment consisting of furniture, fixtures and computer systems. As of the date of the issuance of these financial statements, the Company had borrowed approximately $2.2 million against this facility. |
Significant accounting polici27
Significant accounting policies (Policies) | 12 Months Ended |
Mar. 25, 2017 | |
Accounting Policies [Abstract] | |
Revenue recognition | (a) Revenue recognition: Sales are recognized at the point of sale when merchandise is picked up by the customer or delivered to a customer. Shipping and handling fees billed to customers are included in net sales. Revenues for gift certificate sales and store credits are recognized upon redemption. Prior to recognition as a sale, gift certificates are recorded as accounts payable on the balance sheet. Based on historical redemption rates, a portion of gift certificates and store credits, not subject to unclaimed property laws, are recorded as income. Gift certificates and store credits outstanding and subject to unclaimed property laws are maintained as accrued liabilities until remitted in accordance with local ordinances. Sales of consignment merchandise are recognized at such time as the merchandise is sold, and are recorded on a gross basis because the Company is the primary obligor of the transaction, has general latitude on setting the price, has discretion as to the suppliers, is involved in the selection of the product and has inventory loss risk. Sales are reported net of returns and sales taxes. The Company generally gives its customers the right to return merchandise purchased by them within 10 to 90 days, depending on the product sold and records a provision at the time of sale for the effect of the estimated returns. Revenues for repair services are recognized when the service is delivered to and accepted by the customer. Revenue related to the Company’s purchases of gold and other precious metals from our customers are recognized when the Company delivers the goods, and receives and accepts an offer from a refiner to purchase the gold and other precious metal. Licensing fees are recognized when the product is delivered to and accepted by the customer. |
Cost of sales | (b) Cost of sales: Cost of sales includes direct inbound freight and duties, direct labor related to repair services, design and creative, the jewelry studio, inventory shrink, inventory thefts, and boxes (jewelry, watch and giftware). Indirect freight including inter-store transfers, purchasing and receiving costs, distribution costs and warehousing costs are included in selling, general and administrative expenses. Purchase discounts are recorded as a reduction of inventory cost and are recorded to cost of sales as the items are sold. Mark down dollars received from vendors are recorded as a reduction of inventory costs to the specific items to which they apply and are recognized in cost of sales once the items are sold. Included in cost of sales is depreciation related to manufacturing machinery, equipment and facilities of $31,000, $46,000 and $59,000 for the fiscal years ended March 25, 2017, March 26, 2016, and March 28, 2015, respectively. |
Cash and cash equivalents | (c) Cash and cash equivalents: The Company utilizes a cash management system under which a book cash overdraft may exist in its primary disbursement account. These overdrafts, when applicable, represent uncleared checks in excess of cash balance in the bank account at the end of a reporting period and have been reclassified to accounts payable on the consolidated balance sheets. The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Amounts receivable from credit card issuers are included in cash and cash equivalents and are typically converted to cash within 2 to 4 days of the original sales transaction. These amounts totaled $1.9 million and $2.3 million at March 25, 2017 and March 26, 2016, respectively. |
Accounts receivable | (d) Accounts receivable: Accounts receivable arise primarily from customers’ use of our private label credit card and wholesale sales. Several installment sales plans are offered to our private label credit card holders which vary as to repayment terms and finance charges. Finance charges on the Company’s consumer credit receivables, when applicable, accrue at rates ranging from 0% to 10.99% per annum for financing plans. The Company maintains allowances for doubtful accounts associated with the accounts receivable recorded on the balance sheet for estimated losses resulting from the inability of its customers to make required payments. The allowance is determined based on a combination of factors including, but not limited to, the length of time that the receivables are past due, the Company’s knowledge of the customer, economic and market conditions and historical write-off The Company guarantees a portion of its private label credit card sales to its credit card vendor. The Company maintains a liability associated with these outstanding amounts. Similar to the allowance for doubtful accounts, the liability related to these guaranteed sales amounts are based on a combination of factors including the length of time the receivables are past due to the Company’s credit card vendor, the Company’s knowledge of the customer, economic and market conditions and historical write-off |
Inventories | (e) Inventories: Retail inventories and inventories of raw materials are valued at the lower of average cost or market. Inventories of work in progress and Company manufactured finished goods are valued at the lower of average cost (which includes material, labor and overhead costs) or market. The Company records provisions for lower of cost or market, damaged goods, and slow-moving inventory. The cost of inbound freight and duties are included in the carrying value of the inventories. The allowance for inventory shrink is estimated for the period from the last physical inventory date to the end of the reporting period on a store by store basis and at our distribution centers. The shrink rate from the most recent physical inventory, in combination with historical experience, is the basis for providing a shrink allowance. Inventory is written down for estimated slow moving inventory equal to the difference between the cost of inventory and the estimated market value based on assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. |
Property and equipment | (f) Property and equipment: Property and equipment are recorded at cost. Maintenance and repair costs are charged to selling, general and administrative expenses as incurred, while expenditures for major renewals and improvements are capitalized. Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the assets as follows: Asset Period Buildings Lesser of term of the lease or the economic life Leasehold improvements Lesser of term of the lease or the economic life Software and electronic equipment 1 - 6 years Molds 2 - 5 years Furniture and fixtures 5 - 8 years Equipment 3 - 8 years |
Intangible assets | (g) Intangible assets: Trademarks and tradenames are amortized using the straight-line method over a period of 15 to 20 years. The Company had $1.8 million and $1.8 million of intangible assets at March 25, 2017 and March 26, 2016, respectively. The Company had $1.1 million and $1.0 million of accumulated amortization of intangibles at March 25, 2017 and March 26, 2016, respectively. |
Deferred financing costs | (h) Deferred financing costs: The Company amortizes deferred financing costs incurred in connection with its financing agreements using the effective interest method over the term of the related financing. Such deferred costs are presented as a reduction to long-term debt in the accompanying consolidated balance sheets. |
Warranty accrual | (i) Warranty accrual: The Company generally provides warranties on its jewelry and watches for periods extending up to three years and has a battery replacement policy for its private label watches. The Company accrues a liability based on its historical repair costs for such warranties. |
Income taxes | (j) Income taxes: Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial statement reporting purposes and the bases for income tax purposes, and (b) operating losses and tax credit carryforwards. Deferred income tax assets are evaluated and, if realization is not considered to be more-likely-than-not, |
Foreign exchange | (k) Foreign exchange: Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange in effect at the balance sheet date. Non-monetary Birks Group’s Canadian operations’ functional currency is the Canadian dollar while the reporting currency of the Company is the U.S. dollar. The assets and liabilities denominated in Canadian dollars are translated for reporting purposes at exchange rates in effect at the balance sheet dates. Revenue and expense items are translated at average exchange rates prevailing during the periods. The resulting gains and losses are accumulated in other comprehensive income. |
Impairment of long-lived assets | (l) Impairment of long-lived assets: The Company periodically reviews the estimated useful lives of its depreciable assets and changes in useful lives are made on a prospective basis unless factors indicate the carrying amounts of the assets may not be recoverable and an impairment write-down is necessary. However, the Company will review its long-lived assets for impairment once events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss would be recognized when the estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition is less than its carrying value. Measurement of an impairment loss for such long-lived assets would be based on the difference between the carrying value and the fair value of the asset, with fair value being determined based upon discounted cash flows or appraised values, depending on the nature of the asset. Long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. During fiscal 2015, the Company recorded impairment charges on long-lived assets of $0.2 million associated with a Canadian Birks retail shop-in-shop |
Advertising and marketing costs | (m) Advertising and marketing costs: Advertising and marketing costs are generally charged to expense as incurred and are included in selling, general and administrative expenses in the consolidated statements of operations. However, certain expenses such as those related to catalogs are expensed at the time such catalogs are shipped to recipients. The Company and its vendors participate in cooperative advertising programs in which the vendors reimburse the Company for a portion of certain specific advertising costs which are netted against advertising expense in selling, general and administrative expenses, and amounted to $2.6 million, $2.7 million and $2.9 million for each of the years ended March 25, 2017, March 26, 2016 and March 28, 2015, respectively. Advertising and marketing expense, net of vendor cooperative advertising allowances, amounted to $8.7 million, $9.0 million and $9.5 million in the years ended March 25, 2017, March 26, 2016 and March 28, 2015, respectively. |
Restructuring charges | (n) Restructuring charges: Restructuring charges consist of exit costs and other costs associated with the reorganization of the Company’s operations, including the consolidation of most of the Company’s administrative workforce from its regional office in Tamarac, Florida to its Montreal corporate head office. Restructuring charges include severance and stay bonuses for employees being terminated, sublease costs and related losses recognized related to the abandonment of a portion of the Company’s Tamarac facilities and other costs related to the transition of administrative positions to Montreal including employee recruitment costs, temporary duplication of salaries related to the transition and travel and relocation costs. Costs associated with restructuring activities are recorded when the liability is incurred or when such costs are deemed probable and estimable and represent the Company’s best estimate. |
Pre-opening expenses | (o) Pre-opening Pre-opening |
Operating leases | (p) Operating leases: Lessor incentive amounts on operating leases are deferred and amortized as a reduction of rent expense over the term of the lease. Rent expense is recorded on a straight-line basis, which takes into effect any rent escalations, rent holidays and fixturing periods. Deferred operating lease liabilities amounted to $5.0 million at March 25, 2017 ($4.4 million at March 26, 2016) presented as other long term liabilities. Lease terms are from the inception of the fixturing period until the end of the initial lease term and generally exclude renewal periods. However, renewal periods would be included in instances in which the exercise of the renewal period option would be reasonably assured and failure to exercise such option would result in an economic penalty. Contingent rent payments vary by lease, are based on a percentage of revenue above a predetermined sales level and are expensed when it becomes probable the sales levels will be achieved. This level is different for each location and includes and excludes various types of sales. |
Earnings per common share | (q) Earnings per common share: Basic earnings per share (“EPS”) is computed as net earnings divided by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the dilutive effect of the assumed exercise of stock options, warrants and equity settled stock appreciation rights. The following table sets forth the computation of basic and diluted earnings per common share for the years ended March 25, 2017, March 26, 2016 and March 28, 2015: Fiscal Year Ended March 25, 2017 March 26, 2016 March 28, 2015 (In thousands, except per share data) Basic income (loss) per common share computation: Numerator: Net income (loss) $ 4,928 $ 5,438 $ (8,632 ) Denominator: Weighted-average common shares outstanding 17,961 17,961 17,937 Income (loss) per common share $ 0.27 $ 0.30 $ (0.48 ) Diluted income (loss) per common share computation: Numerator: Net income (loss) $ 4,928 $ 5,438 $ (8,632 ) Denominator: Weighted-average common shares outstanding 17,961 17,961 17,937 Dilutive effect of stock options and warrants 457 — — Weighted-average common shares outstanding – diluted 18,418 17,961 17,937 Diluted income (loss) per common share $ 0.27 $ 0.30 $ (0.48 ) For the year ended March 25, 2017, the effect from the assumed exercise of 417,377 Class A voting shares underlying outstanding stock options and 382,693 Class A voting shares underlying outstanding warrants was excluded from the computation of diluted earnings per share due to their antidilutive effect. For the year ended March 26, 2016, the effect from the assumed exercise of 666,789 Class A voting shares underlying outstanding stock options and 382,693 Class A voting shares underlying outstanding warrants was excluded from the computation of diluted earnings per share due to their antidilutive effect. For the year ended March 28, 2015, the effect from the assumed exercise of 442,088 Class A voting shares underlying outstanding stock options and 382,693 Class A voting shares underlying outstanding warrants was excluded from the computation of diluted earnings per share due to their antidilutive effect. |
Commodity and currency risk | (r) Commodity and currency risk: The Company has exposure to market risk related to gold, silver, platinum and diamond purchases and foreign exchange risk. The Company may periodically enter into gold futures contracts to economically hedge a portion of these risks. During the years ended and as of March 25, 2017 and March 26, 2016, there were no such contracts outstanding. |
Recent Accounting Pronouncements | (s) Recent Accounting Pronouncements adopted during the year: In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU 2015-05 Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (an update to Subtopic 350-40, Internal-Use mid-market Up-front In August 2014, the FASB issued ASU 2014-15 Presentation of Financial Statements – Going Concern (t) Recent Accounting Pronouncement not yet adopted: In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606), In July 2015, the FASB issued ASU No. 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory first-in first-out In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842).” right-of-use right-of-use 2016-02 In June 2016, the FASB issued ASU 2016-13 Financial Instruments – Credit Losses (Topic 326) 2016-13 2016-13 In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230) zero-coupon 2016-15 |
Significant accounting polici28
Significant accounting policies (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Assets | Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the assets as follows: Asset Period Buildings Lesser of term of the lease or the economic life Leasehold improvements Lesser of term of the lease or the economic life Software and electronic equipment 1 - 6 years Molds 2 - 5 years Furniture and fixtures 5 - 8 years Equipment 3 - 8 years |
Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share for the years ended March 25, 2017, March 26, 2016 and March 28, 2015: Fiscal Year Ended March 25, 2017 March 26, 2016 March 28, 2015 (In thousands, except per share data) Basic income (loss) per common share computation: Numerator: Net income (loss) $ 4,928 $ 5,438 $ (8,632 ) Denominator: Weighted-average common shares outstanding 17,961 17,961 17,937 Income (loss) per common share $ 0.27 $ 0.30 $ (0.48 ) Diluted income (loss) per common share computation: Numerator: Net income (loss) $ 4,928 $ 5,438 $ (8,632 ) Denominator: Weighted-average common shares outstanding 17,961 17,961 17,937 Dilutive effect of stock options and warrants 457 — — Weighted-average common shares outstanding – diluted 18,418 17,961 17,937 Diluted income (loss) per common share $ 0.27 $ 0.30 $ (0.48 ) |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Receivables [Abstract] | |
Summary of Accounts Receivable, Net of Allowance for Doubtful Accounts | Accounts receivable, net of allowance for doubtful accounts, at March 25, 2017 and March 26, 2016 consist of the following: As of March 25, 2017 March 26, 2016 (In thousands) Customer trade receivables $ 10,389 $ 8,041 Other receivables 3,172 2,252 $ 13,561 $ 10,293 |
Schedule of Continuity of Allowance for Doubtful Accounts | Continuity of the allowance for doubtful accounts is as follows (in thousands): Balance March 29, 2014 $ 1,806 Additional provision recorded 613 Net write-offs (160 ) Balance March 28, 2015 2,259 Additional provision recorded 190 Net write-offs (294 ) Balance March 26, 2016 2,155 Additional provision recorded 845 Net write-offs (221 ) Balance March 25, 2017 $ 2,779 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories, Net of Obsolescence Reserve | Inventories, net of obsolescence reserve, are summarized as follows: As of March 25, 2017 March 26, 2016 (In thousands) Raw materials $ 3,768 $ 4,301 Work in progress 49 95 Retail inventories and manufactured finished goods 128,252 133,443 $ 132,069 $ 137,839 |
Continuity of Obsolescence Reserve for Inventory | Continuity of the obsolescence reserve for inventory is as follows (in thousands): Balance March 29, 2014 $ 2,514 Additional charges 1,545 Deductions (1,313 ) Balance March 28, 2015 2,746 Additional charges 626 Deductions (1,228 ) Balance March 26, 2016 2,144 Additional charges 496 Deductions (954 ) Balance March 25, 2017 $ 1,686 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | The components of property and equipment are as follows: As of March 25, 2017 March 26, 2016 (In thousands) Land $ — $ 4,909 Buildings — 7,274 Leasehold improvements 37,114 36,550 Equipment 1,924 1,933 Molds 33 838 Furniture and fixtures 8,612 9,858 Software and electronic equipment 21,409 19,155 69,092 80,517 Accumulated depreciation (46,102 ) (51,098 ) $ 22,990 $ 29,419 |
Bank indebtedness (Tables)
Bank indebtedness (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Company's Senior Credit Facility | The information concerning the Company’s senior secured credit facility is as follows: Fiscal Year Ended March 25, 2017 March 26, 2016 (In thousands) Maximum borrowing outstanding during the year $ 83,615 $ 78,137 Average outstanding balance during the year $ 71,750 $ 68,205 Weighted average interest rate for the year 3.2 % 3.2 % Effective interest rate at year-end 3.0 % 3.3 % |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | (a) Long-term debt consists of the following: As of March 25, 2017 March 26, 2016 (In thousands) Senior secured term loans that are subordinated in lien priority to the Company’s senior secured revolving credit facility. The loan bears interest at an annual rate of LIBOR plus 9.75% on $28 million of debt. $5 million was repaid in December 2016. The term of the loan expires in May 2021. $ 26,952 $ 32,186 Term loan from Investissement Quebec, bearing interest at an annual rate of Canadian prime plus 7.0%, repayable beginning in October 2014 in 60 equal monthly principal payments of $62,314 (CAD$83,333), secured by the assets of the Company. The balance at March 25, 2017 and March 26, 2016 was CAD$2.9 million and CAD$3.7 million, respectively (b). 2,141 2,786 Term loan from Investissement Québec, bearing interest at an annual rate of Canadian prime plus 5.5%, repayable beginning in April 2012 in 48 equal monthly capital repayments of $155,786 (CAD$208,333), secured by the assets of the Company. The balance at March 25, 2017 and March 26, 2016 was CAD$1.0 million and CAD$3.1 million, respectively (b). 779 2,355 Term loan from Investissement Québec, bearing interest at an annual rate of Canadian prime plus 10%, repayable beginning in August 2015 in 48 equal monthly principal payment of $31,157 (CAD$41,667), secured by the assets of the Company. The balance at March 25, 2017 and March 26, 2016 was CAD$1.4 million and 1.8 million respectively (b) 1,061 1,383 Obligations under capital leases, at annual interest rates between 3.6% and 14.9%, secured by leasehold improvements, furniture, and equipment, maturing at various dates to March 2021. 902 1,719 Cash advance provided by the Company’s controlling shareholder, Montrovest, bearing interest at an annual rate of 11%, net of withholding taxes (note 16(c)) 1,500 1,500 Senior secured term loan that is subordinated in lien priority to the Company’s senior secured revolving credit facility. The loan bore interest at an annual rate of LIBOR plus 9.75%. The loan was repaid in May 2016. — 1,215 Obligation under capital lease on land and building, pursuant to a sale-leaseback transaction. This obligation was terminated in November 2016 upon the sale of the Montreal head-office building. The balance at March 25, 2017 and March 26, 2016 was nil and CAD$12.1 million, respectively (f). — 9,141 33,335 52,285 Current portion of long-term debt 2,810 5,634 $ 30,525 $ 46,651 |
Summary of Future Minimum Lease Payments for Capital Leases | (c) Future minimum lease payments for capital leases required in the following five years and thereafter are as follows (in thousands): Year ending March: 2018 $ 592 2019 125 2020 92 2021 92 2022 67 Thereafter — 968 Less imputed interest 66 $ 902 |
Summary of Principal Payment on Long Term Debt Including Obligation Under Capital Lease | (d) Principal payments on long-term debt required in the following five years and thereafter, including obligations under capital leases, are as follows (in thousands): Year ending March: 2018 $ 2,810 2019 1,191 2020 712 2021 27,057 2022 65 Thereafter 1,500 $ 33,335 |
Benefit plans and stock-based34
Benefit plans and stock-based compensation (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Birks Stock Option Plan [Member] | |
Summary of Activity of Stock Option Plans and Arrangements | The following is a summary of the activity of Birks’ stock option plans and arrangements. Options Weighted average Outstanding March 29, 2014 664,585 $ 1.21 Granted 50,000 1.94 Exercised (111,372 ) 1.04 Expired (15,000 ) 7.73 Forfeited (147,051 ) 1.10 Outstanding March 28, 2015 441,162 1.15 Granted 235,000 0.78 Forfeited (10,000 ) 1.10 Outstanding March 26, 2016 666,162 1.02 Granted 218,000 1.43 Forfeited (10,000 ) 0.78 Outstanding March 25, 2017 874,162 $ 1.13 |
Summary of Status of Stock Options | A summary of the status of Birks’ stock options at March 25, 2017 is presented below: Options outstanding Options exercisable Exercise price Number Weighted Weighted Number Weighted $ 0.78 225,000 8.5 $ 0.78 74,996 $ — $ 0.84 100,000 6.1 0.84 100,000 0.84 $ 0.89 55,000 5.6 0.89 55,000 0.89 $ 1.04-1.05 156,162 4.7 1.04 156,162 1.04 $ 1.25-1.66 70,000 5.2 1.48 70,000 1.48 $ 1.43 218,000 9.7 1.43 — — $ 1.94 50,000 7.8 1.94 33,333 1.94 874,162 8.2 $ 1.13 489,491 $ 1.07 |
Mayors Stock Option Plan [Member] | |
Summary of Status of Stock Options | A summary of the status of the option plans at March 25, 2017 is presented below: Exercise price Options outstanding and exercisable Number Weighted average Weighted average $ 1.05 627 3.1 $ 1.05 |
Summary of Stock Option Activity | The following is a summary of the activity of Mayors stock option plans: Options Weighted average Outstanding March 29, 2014 3,836 $ 5.19 Expired (2,910 ) 6.51 Outstanding March 28, 2015 926 1.05 Expired (299 ) 1.05 Outstanding March 26, 2016 and March 25, 2017 627 1.05 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Net Deferred Tax Assets | The significant items comprising the Company’s net deferred tax assets at March 25, 2017 and March 26, 2016 are as follows: Fiscal Year Ended March 25, 2017 March 26, 2016 (In thousands) Deferred tax assets: Loss and tax credit carry forwards $ 44,296 $ 39,710 Difference between book and tax basis of property and equipment 4,951 2,731 Interest expense limitations carry forward 7,190 10,697 Inventory allowances 383 417 Other reserves not currently deductible 1,045 807 Capital lease obligation — 2,431 Expenses not currently deductible 776 667 Other (27 ) (175 ) Net deferred tax asset before valuation allowance 58,614 57,285 Valuation allowance (53,311 ) (57,285 ) Net deferred tax asset $ 5,303 $ — |
Components of Income Tax Expense (Benefit) | The Company’s income tax expense (benefit) consists of the following components: Fiscal Year Ended March 25, 2017 March 26, 2016 March 28, 2015 (In thousands) Income tax expense (benefit): Current $ 26 $ 50 $ 77 Deferred 550 1,591 (2,636 ) Valuation allowance (5,853 ) (1,591 ) 2,559 Income tax expense $ (5,277 ) $ 50 $ — |
Schedule of Effective Income Tax Rate Reconciliation | The Company’s provision for income taxes varies from the amount computed by applying the statutory income tax rates for the reasons summarized below: Fiscal Year Ended March 25, 2017 March 26, 2016 March 28, 2015 Canadian statutory rate $ (93 ) $ 1,460 $ (2,275 ) Rate differential for U.S. operations 545 358 (443 ) Utilization of unrecognized losses and other tax attributes (7,404 ) (1,768 ) — Valuation allowance on deferred tax assets 1,538 177 2,636 Permanent differences and other 137 (177 ) 82 Total $ (5,277 ) $ 50 $ — |
Capital stock (Tables)
Capital stock (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Equity [Abstract] | |
Summary of Common Stock Outstanding | The issued and outstanding shares are as follows: Class A common stock Class B common stock Total common stock Number Amount Number Amount Number Amount Balance as of March 28, 2015 10,242,911 $ 30,988 7,717,970 $ 38,613 17,960,881 $ 69,601 Exercise of stock options — — — — — — Balance as of March 26, 2016 10,242,911 $ 30,988 7,717,970 $ 38,613 17,960,881 $ 69,601 Exercise of stock options — — — — — — Balance as of March 25, 2017 10,242,911 $ 30,988 7,717,970 $ 38,613 17,960,881 $ 69,601 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Future Payments Under Leases | Future minimum lease payments for the next five years and thereafter are as follows (in thousands): Year ending March: 2018 $ 14,924 2019 14,515 2020 14,221 2021 12,674 2022 12,145 Thereafter 42,799 $ 111,278 |
Segmented information (Tables)
Segmented information (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Information Relating to Segments | Certain information relating to the Company’s segments for the years ended March 25, 2017, March 26, 2016, and March 28, 2015, respectively, is set forth below: Retail Other Total 2017 2016 2015 2017 2016 2015 2017 2016 2015 (In thousands) Sales to external customers $ 283,807 $ 281,940 $ 293,146 $ 3,114 $ 3,886 $ 8,491 $ 286,921 $ 285,826 $ 301,637 Inter-segment sales — — — 13,586 14,002 15,891 13,586 14,002 15,891 Unadjusted Gross profit 108,487 110,023 118,128 1,062 2,691 5,390 109,549 112,714 123,518 |
Schedule of Reconciliations of Segments Gross Profits and Certain Unallocated Costs to Consolidated Gross Profits | The following sets forth reconciliations of the segments’ gross profits and certain unallocated costs to the Company’s consolidated gross profits for the years ended March 25, 2017, March 26, 2016, and March 28, 2015: Fiscal Year Ended March 25, 2017 March 26, 2016 March 28, 2015 (In thousands) Unadjusted gross profit $ 109,549 $ 112,714 $ 123,518 Inventory provisions (1,250 ) (2,084 ) (3,151 ) Other unallocated costs (177 ) (1,630 ) (2,551 ) Adjustment of intercompany profit 312 387 (11 ) Gross profit $ 108,434 $ 109,387 $ 117,805 |
Schedule of Sales to External Customers and Long-Lived Assets by Geographical Area | Sales to external customers and long-lived assets by geographical areas were as follows: Fiscal Year Ended March 25, 2017 March 26, 2016 March 28, 2015 (In thousands) Geographic Areas Net sales: Canada $ 116,436 $ 128,651 $ 143,384 United States 170,485 157,175 158,253 $ 286,921 $ 285,826 $ 301,637 Long-lived assets: Canada $ 13,921 $ 18,610 $ 17,072 United States 9,259 11,302 11,957 $ 23,180 $ 29,912 $ 29,029 Classes of Similar Products Net sales: Jewelry and other $ 122,405 $ 127,220 $ 141,781 Timepieces 164,516 158,606 159,856 $ 286,921 $ 285,826 $ 301,637 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Related Party Transactions [Abstract] | |
Balance Related to Related Parties | (a) The Company is party to certain related party transactions. Balances related to these related parties are disclosed in the consolidated financial statements except the following: Fiscal Year Ended March 25, 2017 March 26, 2016 March 28, 2015 (In thousands) Transactions: Purchases of inventory from supplier related to shareholder (d) $ — $ 503 $ 189 Management fees to related parties (b) 154 155 238 Consultant fees to a related party (e) 150 173 175 Expense reimbursement to a related party (f) 178 201 241 Interest expense on cash advance received from controlling shareholder (c) 165 165 165 Compensation paid to a related party (h) 67 — 136 Balances: Accounts payable to supplier related to shareholder (d) — 17 — Accounts payable to related parties 57 38 447 Interest payable on cash advance received from controlling shareholder 24 25 136 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2016 | Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | Mar. 31, 2018 | Dec. 21, 2016 | Nov. 30, 2016 | Feb. 10, 2014 | Jan. 20, 2014 | |
Organization And Description Of Business [Line Items] | |||||||||
Net (loss) income | $ 4,928,000 | $ 5,438,000 | $ (8,632,000) | ||||||
Estimated capital expenditures | 13,900,000 | ||||||||
Estimated capital expenditures, fiscal 2018 | 8,100,000 | ||||||||
Senior secured revolving credit facility reserve | 6,000,000 | ||||||||
Bank indebtedness | 70,434,000 | 62,431,000 | |||||||
Senior secured credit facility | $ 110,000,000 | ||||||||
Senior secured revolving credit facility, excess availability | 14,600,000 | 16,200,000 | |||||||
Senior secured revolving credit facility, seasonal availability block | $ 5,000,000 | $ 12,500,000 | |||||||
Minimum excess availability | $ 8,000,000 | 30,000,000 | |||||||
Senior secured revolving credit facility, increase or decrease | $ 41,000 | ||||||||
Store [Member] | |||||||||
Organization And Description Of Business [Line Items] | |||||||||
Percentage of leases require capital expenditure for renewal | 27.00% | ||||||||
Leases renewal term | 2 years | ||||||||
Percentage of leases require capital expenditure | 23.00% | ||||||||
Senior Secured Revolving Credit Facility [Member] | |||||||||
Organization And Description Of Business [Line Items] | |||||||||
Senior secured credit facility | $ 110,000,000 | ||||||||
Senior secured revolving credit facility, excess availability | $ 14,600,000 | $ 16,200,000 | |||||||
Secured credit facility description | In December 2016, the Company executed an amendment to the terms of its $110.0 million senior secured revolving credit facility to extend the maturity, which was set to expire on August 22, 2017. The term of the senior secured revolving credit facility now expires on the earlier to occur of (a) December 21, 2021 or (b) the date that is 91 days prior to the maturity date then in effect with respect to the senior secured term loan debt. | In December 2016, the Company executed an amendment to the terms of its $110.0 million senior secured revolving credit facility to extend the maturity, which was set to expire on August 22, 2017. The term of the senior secured revolving credit facility now expires on the earlier to occur of (a) December 21, 2021 or (b) the date that is 91 days prior to the maturity date then in effect with respect to the senior secured term loan debt. | |||||||
Senior Secured Revolving Credit Facility [Member] | Minimum [Member] | |||||||||
Organization And Description Of Business [Line Items] | |||||||||
Senior secured revolving credit facility reserve | $ 6,000,000 | $ 8,000,000 | |||||||
Senior Secured Revolving Credit Facility [Member] | Minimum [Member] | Scenario, Forecast [Member] | |||||||||
Organization And Description Of Business [Line Items] | |||||||||
Senior secured revolving credit facility reserve | $ 6,000,000 | ||||||||
Senior Secured Term Loan [Member] | |||||||||
Organization And Description Of Business [Line Items] | |||||||||
Senior secured credit facility | $ 28,000,000 | $ 33,000,000 | |||||||
Line of Credit Facility Expiration Date | May 21, 2021 | May 21, 2021 | |||||||
Senior Secured Revolving Credit Facility and Senior Secured Term Loan [Member] | |||||||||
Organization And Description Of Business [Line Items] | |||||||||
Secured credit facility description | The amendments to the senior secured revolving credit facility and the senior secured term loan also include a reduction to the minimum adjusted EBITDA levels and reduce the seasonal availability blocks imposed from December 20th to January 20th of each year from $12.5 million to $11.5 million and from January 21st to February 10th from $5.0 million to $4.0 million. Failure to meet the minimum adjusted EBITDA covenant (calculated on a twelve-month rolling basis as defined in the agreement) in the event that excess availability falls below $6.0 million for any five consecutive business days is considered an event of default under the amended agreements, that could result in the outstanding balances borrowed under the Company’s senior secured term loan and senior secured revolving credit facility becoming due immediately, which would result in cross defaults on the Company’s other borrowings. | ||||||||
Secured credit facility | $ 6,000,000 | ||||||||
Senior secured revolving credit facility, seasonal availability block | 5,000,000 | 12,500,000 | |||||||
Minimum excess availability | $ 6,000,000 | $ 8,000,000 | |||||||
Senior Secured Revolving Credit Facility and Senior Secured Term Loan [Member] | As Amended [Member] | |||||||||
Organization And Description Of Business [Line Items] | |||||||||
Senior secured revolving credit facility, seasonal availability block | $ 4,000,000 | $ 11,500,000 |
Significant Accounting Polici41
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Significant Accounting Policies [Line Items] | |||
Depreciation of assets | $ 31,000 | $ 46,000 | $ 59,000 |
Amounts receivable from credit card issuers | $ 1,900,000 | 2,300,000 | |
Accounts receivable periods | 30 days | ||
Amortization method of intangible assets | Trademarks and tradenames are amortized using the straight-line method over a period of 15 to 20 years. | ||
Intangible assets | $ 1,800,000 | 1,800,000 | |
Accumulated amortization of intangible assets | $ 1,100,000 | 1,000,000 | |
Period of warranties | 3 years | ||
Asset impairment charges | $ 0 | 0 | 200,000 |
Reimbursement of advertising cost | 2,600,000 | 2,700,000 | 2,900,000 |
Advertising and marketing expense | 8,700,000 | 9,000,000 | $ 9,500,000 |
Deferred operating lease liabilities | 5,000,000 | 4,400,000 | |
Reclassifying deferred financing costs | $ 1,100,000 | $ 1,700,000 | |
Stock Options [Member] | |||
Significant Accounting Policies [Line Items] | |||
Outstanding | 417,377 | 666,789 | 442,088 |
Warrants [Member] | |||
Significant Accounting Policies [Line Items] | |||
Outstanding | 382,693 | 382,693 | 382,693 |
Cost of Goods Sold [Member] | |||
Significant Accounting Policies [Line Items] | |||
Foreign exchange gains (losses) | $ (200,000) | $ (300,000) | $ (400,000) |
Interest and Other Financial Costs [Member] | |||
Significant Accounting Policies [Line Items] | |||
Foreign exchange gains (losses) | $ 100,000 | $ (200,000) | $ (500,000) |
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Product return, Days | 90 days | ||
Consumer credit receivable charges | 10.99% | ||
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Product return, Days | 10 days | ||
Consumer credit receivable charges | 0.00% |
Significant Accounting Polici42
Significant Accounting Policies - Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Mar. 25, 2017 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | Lesser of term of the lease or the economic life |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | Lesser of term of the lease or the economic life |
Software and Electronic Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 1 year |
Software and Electronic Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 6 years |
Molds [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 2 years |
Molds [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 8 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 8 years |
Significant Accounting Polici43
Significant Accounting Policies - Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Numerator: | |||
Net income (loss) | $ 4,928 | $ 5,438 | $ (8,632) |
Denominator: | |||
Weighted-average common shares outstanding | 17,961 | 17,961 | 17,937 |
Income (loss) per common share | $ 0.27 | $ 0.30 | $ (0.48) |
Numerator: | |||
Net income (loss) | $ 4,928 | $ 5,438 | $ (8,632) |
Denominator: | |||
Weighted-average common shares outstanding | 17,961 | 17,961 | 17,937 |
Dilutive effect of stock options and warrants | 457 | ||
Weighted-average common shares outstanding - diluted | 18,418 | 17,961 | 17,937 |
Diluted income (loss) per common share | $ 0.27 | $ 0.30 | $ (0.48) |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable, Net of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Receivables [Abstract] | ||
Customer trade receivables | $ 10,389 | $ 8,041 |
Other receivables | 3,172 | 2,252 |
Total | $ 13,561 | $ 10,293 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Continuity of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Receivables [Abstract] | |||
Beginning balance | $ 2,155 | $ 2,259 | $ 1,806 |
Additional provision recorded | 845 | 190 | 613 |
Net write-offs | (221) | (294) | (160) |
Ending balance | $ 2,779 | $ 2,155 | $ 2,259 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) - Non Accrual [Member] - USD ($) $ in Millions | 12 Months Ended | |
Mar. 25, 2017 | Mar. 26, 2016 | |
Accounts Receivables [Line Items] | ||
Payment period of term loan | Revolving lines of credit and/or installment plans under which the payment terms exceed one year. | |
Outstanding amount of receivables | $ 6.4 | $ 5 |
Inventories - Summary of Invent
Inventories - Summary of Inventories, Net of Obsolescence Reserve (Detail) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,768 | $ 4,301 |
Work in progress | 49 | 95 |
Retail inventories and manufactured finished goods | 128,252 | 133,443 |
Total inventory | $ 132,069 | $ 137,839 |
Inventories - Continuity of Obs
Inventories - Continuity of Obsolescence Reserve for Inventory (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Inventory Disclosure [Abstract] | |||
Beginning balance | $ 2,144 | $ 2,746 | $ 2,514 |
Additional charges | 496 | 626 | 1,545 |
Deductions | (954) | (1,228) | (1,313) |
Ending balance | $ 1,686 | $ 2,144 | $ 2,746 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 69,092 | $ 80,517 |
Accumulated depreciation | (46,102) | (51,098) |
Property and equipment, Net | 22,990 | 29,419 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 4,909 | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 7,274 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 37,114 | 36,550 |
Accumulated depreciation | (8,200) | (10,400) |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 1,924 | 1,933 |
Molds [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 33 | 838 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 8,612 | 9,858 |
Software and Electronic Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 21,409 | $ 19,155 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and plant under capital lease arrangement, cost | $ 69,092 | $ 80,517 |
Gross fixed assets write down | 46,102 | 51,098 |
Assets Held under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and plant under capital lease arrangement, cost | 1,900 | 12,100 |
Property and plant under capital lease arrangement, net book value | 1,100 | 8,400 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and plant under capital lease arrangement, cost | 37,114 | 36,550 |
Gross fixed assets write down | $ 8,200 | $ 10,400 |
Sale of Assets - Additional Inf
Sale of Assets - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 04, 2015 | Mar. 25, 2017 | Mar. 26, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gross proceeds from sale of assets | $ 4,300 | ||
Amount of inventory included in sale of assets | $ 132,069 | $ 137,839 | |
Rideau [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Amount of inventory included in sale of assets | 800 | ||
Gain on disposal of assets | 3,200 | ||
Royalty receivables, First year | 4,500 | ||
Royalty receivables, Second year | 4,500 | ||
Royalty receivables, Third year | 4,500 | ||
Royalty receivables, Thereafter | $ 2,000 |
Bank Indebtedness - Additional
Bank Indebtedness - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2016USD ($) | Mar. 25, 2017USD ($) | Mar. 26, 2014USD ($) | Mar. 26, 2014CAD | Dec. 21, 2016USD ($) | Nov. 30, 2016USD ($) | Mar. 26, 2016USD ($) | Feb. 10, 2014USD ($) | Jan. 20, 2014USD ($) | |
Line of Credit Facility [Line Items] | |||||||||
Bank indebtedness | $ 70,434,000 | $ 62,431,000 | |||||||
Senior secured revolving credit facility, excess availability | 14,600,000 | 16,200,000 | |||||||
Senior secured credit facility | $ 110,000,000 | ||||||||
Senior secured revolving credit facility reserve | 6,000,000 | ||||||||
Reduction in the senior secured term loan | 5,000,000 | ||||||||
Minimum excess availability | $ 8,000,000 | 30,000,000 | |||||||
Senior secured revolving credit facility, seasonal availability block | $ 5,000,000 | $ 12,500,000 | |||||||
Mortgage on moveable property (general) under the Civil Code (Quebec) | $ 188,395,000 | CAD 250,000,000 | |||||||
Senior Secured Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Senior secured revolving credit facility, excess availability | 14,600,000 | $ 16,200,000 | |||||||
Senior secured credit facility | $ 110,000,000 | ||||||||
Secured credit facility description | In December 2016, the Company executed an amendment to the terms of its $110.0 million senior secured revolving credit facility to extend the maturity, which was set to expire on August 22, 2017. The term of the senior secured revolving credit facility now expires on the earlier to occur of (a) December 21, 2021 or (b) the date that is 91 days prior to the maturity date then in effect with respect to the senior secured term loan debt. | In December 2016, the Company executed an amendment to the terms of its $110.0 million senior secured revolving credit facility to extend the maturity, which was set to expire on August 22, 2017. The term of the senior secured revolving credit facility now expires on the earlier to occur of (a) December 21, 2021 or (b) the date that is 91 days prior to the maturity date then in effect with respect to the senior secured term loan debt. | |||||||
Senior Secured Term Loan [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Senior secured credit facility | $ 28,000,000 | $ 33,000,000 | |||||||
Line of Credit Facility Expiration Date | May 21, 2021 | May 21, 2021 | |||||||
As Amended [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Minimum excess availability | $ 6,000,000 | ||||||||
Senior secured revolving credit facility, seasonal availability block | $ 4,000,000 | $ 11,500,000 | |||||||
Maximum [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Aggregate dividend payment | 33.00% | ||||||||
Fixed charge coverage ratio | 1.30 | ||||||||
Minimum [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Fixed charge coverage ratio | 1 | ||||||||
Minimum [Member] | Senior Secured Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Senior secured revolving credit facility reserve | $ 6,000,000 | $ 8,000,000 |
Bank Indebtedness - Summary of
Bank Indebtedness - Summary of Company's Senior Credit Facility (Detail) - Senior Secured Notes [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 25, 2017 | Mar. 26, 2016 | |
Line of Credit Facility [Line Items] | ||
Maximum borrowing outstanding during the year | $ 83,615 | $ 78,137 |
Average outstanding balance during the year | $ 71,750 | $ 68,205 |
Weighted average interest rate for the year | 3.20% | 3.20% |
Effective interest rate at year-end | 3.00% | 3.30% |
Long-term debt - Summary of Lon
Long-term debt - Summary of Long Term Debt (Detail) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt and Capital lease obligations | $ 33,335 | $ 52,285 |
Long-term debt: | ||
Long-term debt and Capital lease obligations | 33,335 | 52,285 |
Current portion of long-term debt | 2,810 | 5,634 |
Long-term debt | 30,525 | 46,651 |
Term Loan from Investissement Quebec Prime Plus Seven Percent [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,141 | 2,786 |
Term Loan from Investissement Quebec Prime Plus Five Point Five Percent [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 779 | 2,355 |
Capital Leasing Arrangements [Member] | Land and Building [Member] | ||
Debt Instrument [Line Items] | ||
Obligation under capital leases | 9,141 | |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 26,952 | 32,186 |
Term Loan from Investissement Quebec Prime Plus Ten Percent [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,061 | 1,383 |
Secured Debt [Member] | Furniture and Equipment [Member] | ||
Debt Instrument [Line Items] | ||
Obligation under capital leases | 902 | 1,719 |
Cash Contribution [Member] | Montrovest BV [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,500 | 1,500 |
Term Loan Facility Repaid In May Two Thousand Sixteen [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,215 |
Long-term debt - Summary of L55
Long-term debt - Summary of Long Term Debt (Parenthetical) (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2016USD ($) | Mar. 25, 2017USD ($)Installment | Mar. 25, 2017CADInstallment | Mar. 26, 2016USD ($)Installment | Mar. 26, 2016CADInstallment | Mar. 28, 2015USD ($) | Mar. 25, 2017CAD | Mar. 26, 2016CAD | |
Debt Instrument [Line Items] | ||||||||
Debt Periodic payment | $ 8,777 | $ 2,956 | $ 1,144 | |||||
Term Loan from Investissement Quebec Prime Plus Seven Percent [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 2,141 | $ 2,786 | ||||||
Annual rate of prime plus | 7.00% | 7.00% | 7.00% | 7.00% | ||||
Number of installments | Installment | 60 | 60 | 60 | 60 | ||||
Capital repayments | $ 62,314 | CAD 83,333,000 | $ 62,314 | CAD 83,333,000 | ||||
Balance of term loan | CAD | CAD 2,900,000 | CAD 3,700,000 | ||||||
Term Loan from Investissement Quebec Prime Plus Five Point Five Percent [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 779 | $ 2,355 | ||||||
Annual rate of prime plus | 5.50% | 5.50% | 5.50% | 5.50% | ||||
Number of installments | Installment | 48 | 48 | 48 | 48 | ||||
Capital repayments | $ 155,786 | CAD 208,333,000 | $ 155,786 | CAD 208,333,000 | ||||
Balance of term loan | CAD | CAD 1,000,000 | CAD 3,100,000 | ||||||
Land and Building [Member] | Capital Leasing Arrangements [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding amount of repayment | CAD | CAD 0 | CAD 12,100,000 | ||||||
Minimum [Member] | Capital Leasing Arrangements [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument Interest Rate Stated Percentage Rate | 3.60% | 3.60% | 3.60% | 3.60% | ||||
Maximum [Member] | Capital Leasing Arrangements [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument Interest Rate Stated Percentage Rate | 14.90% | 14.90% | 14.90% | 14.90% | ||||
Term Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 26,952 | $ 32,186 | ||||||
Term Loan Facility [Member] | Senior Subordinated Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility Repayment Date | May 31, 2021 | May 31, 2021 | May 31, 2021 | May 31, 2021 | ||||
Term Loan Facility [Member] | Senior Subordinated Loans [Member] | Libor Plus Nine Point Seven Five Percent [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 28,000 | $ 28,000 | ||||||
Debt Periodic payment | $ 5,000 | |||||||
Interest rate description | LIBOR plus 9.75% | LIBOR plus 9.75% | LIBOR plus 9.75% | LIBOR plus 9.75% | ||||
Long-term debt interest rate | 9.75% | 9.75% | 9.75% | 9.75% | ||||
Term Loan from Investissement Quebec Prime Plus Ten Percent [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 1,061 | $ 1,383 | ||||||
Annual rate of prime plus | 10.00% | 10.00% | 10.00% | 10.00% | ||||
Capital repayment period | 48 months | 48 months | 48 months | 48 months | ||||
Periodic principal payment due | $ 31,157 | CAD 41,667,000 | $ 31,157 | CAD 41,667,000 | ||||
Outstanding amount of repayment | CAD | CAD 1,400,000 | CAD 1,800,000 | ||||||
Cash Contribution [Member] | Montrovest BV [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 1,500 | $ 1,500 | ||||||
Interest on Cash advances | 11.00% | 11.00% | 11.00% | 11.00% | ||||
Term Loan Facility Repaid In May Two Thousand Sixteen [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 1,215 | |||||||
Term Loan Facility Repaid In May Two Thousand Sixteen [Member] | Senior Subordinated Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility Repayment Date | May 31, 2016 | May 31, 2016 | May 31, 2016 | May 31, 2016 | ||||
Term Loan Facility Repaid In May Two Thousand Sixteen [Member] | Senior Subordinated Loans [Member] | Libor Plus Nine Point Seven Five Percent [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate description | LIBOR plus 9.75% | LIBOR plus 9.75% | LIBOR plus 9.75% | LIBOR plus 9.75% | ||||
Long-term debt interest rate | 9.75% | 9.75% | 9.75% | 9.75% |
Long-term debt - Additional Inf
Long-term debt - Additional Information (Detail) CAD in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2015USD ($) | Nov. 30, 2015CAD | Mar. 25, 2017USD ($) | Dec. 11, 2016USD ($) | Dec. 11, 2016CAD | Mar. 26, 2016USD ($) | |
Line of Credit Facility [Line Items] | ||||||
Outstanding letters of credit | $ 0.9 | $ 1 | ||||
Montreal Head Office and Store [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Capital lease asset | $ 6.5 | CAD 8.7 | ||||
Capital lease obligation | 8.7 | 11.6 | ||||
Lease period | 20 years | |||||
Annual rent rate | 1.6 | 2.2 | ||||
Montreal Head Office and Store [Member] | Other Long-term Liabilities [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Non-cash gain | $ 2.2 | CAD 2.9 | ||||
Investissement Quebec [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Reduction of monthly capital requirements | $ 1.5 | CAD 2 | ||||
Minimum capital ratio required | 1.15 | |||||
Investissement Quebec [Member] | Minimum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Adjusted long-term debt to adjusted net assets ratio | 2.5 |
Long-term debt - Summary of Fut
Long-term debt - Summary of Future Minimum Lease Payments for Capital Leases (Detail) $ in Thousands | Mar. 25, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 592 |
2,019 | 125 |
2,020 | 92 |
2,021 | 92 |
2,022 | 67 |
Thereafter | 0 |
Total minimum lease payments | 968 |
Less imputed interest | 66 |
Total | $ 902 |
Long-term debt - Summary of Pri
Long-term debt - Summary of Principal Payment on Long Term Debt Including Obligation Under Capital Lease (Detail) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 2,810 | |
2,019 | 1,191 | |
2,020 | 712 | |
2,021 | 27,057 | |
2,022 | 65 | |
Thereafter | 1,500 | |
Long-term debt and Capital lease obligations | $ 33,335 | $ 52,285 |
Benefit Plans and Stock-Based59
Benefit Plans and Stock-Based Compensation - Additional Information (Detail) | Nov. 15, 2016shares | Mar. 25, 2017USD ($)$ / sharesshares | Mar. 26, 2016USD ($)$ / sharesshares | Mar. 28, 2015USD ($)shares | Mar. 29, 2014shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding | 874,162 | 666,162 | 441,162 | 664,585 | |
Share-based payment arrangements | $ | $ 0 | $ 0 | $ 0 | ||
Outstanding warrants | 382,693 | ||||
Weighted average exercise price | $ / shares | $ 3.42 | ||||
Warrant expiry date | Aug. 20, 2022 | ||||
Maximum percentage of CO's total earnings before tax for three years | 10.00% | ||||
Target incentive compensation level for the first three year cycle | $ | $ 2,067,000 | ||||
Percentage of total payout capped | 200.00% | ||||
Payment portion of LTCIP value at the end of first three year | 0.33 | ||||
Payment portion of LTCIP value thereafter | 0.33 | ||||
Share Based Compensation Payout Ratio Under Long Term Cash Incentive Plan | 0.33 | ||||
Percentage of amount payable at the end of three year | 50.00% | ||||
Percentage Of Remaining Amount Payable One Year Thereafter | 50.00% | ||||
Amounts earned under CEO long-term cash incentive Plan | $ | $ 0 | ||||
Class A Voting Share [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Intrinsic value of outstanding options | $ | 0 | ||||
Unrecognized compensation, non-vested portion of stock option | $ | 46,000 | ||||
Total compensation cost for recognized expenses | $ | $ 92,000 | $ 109,000 | $ 76,000 | ||
Class A Voting Share [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for issuance | 1,796,088 | ||||
Amended Birks Employee Stock Option Plan [Member] | Class A Voting Share [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercise price | $ / shares | $ 1.05 | ||||
Options granted | 6,162 | 6,162 | 6,162 | ||
Compensation expense | $ | $ 0 | $ 0 | $ 0 | ||
Stock Compensation Plan [Member] | Class A Voting Share [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee stock option description | Birks ESOP | ||||
Employee Stock Purchase Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional shares to be issued under this plan | No additional shares will be issued under this plan. | ||||
Additional shares issued | 0 | 0 | 0 | ||
Employee Stock Purchase Plans [Member] | Class A Voting Share [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for issuance | 100,000 | ||||
Common stock purchase percent | 85.00% | ||||
Outstanding shares | 99,995 | ||||
Long Term Incentive Plan [Member] | Class A Voting Share [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Long term incentive plan stock appreciation rights, weighted average exercise price | $ / shares | $ 1.33 | ||||
Options outstanding | 650,000 | ||||
Stock options issued | 0 | 235,000 | |||
Vesting period | 3 years | ||||
Exercise price | $ / shares | $ 0.78 | ||||
Expiration period | 10 years | ||||
Weighted Average Grant Date Fair Value | $ / shares | $ 0.69 | ||||
Dividend yield | 0.00% | ||||
Expected volatility | 95.30% | ||||
Risk free interest rate | 2.30% | ||||
Weighted average expected term | 10 years | ||||
Long Term Incentive Plan [Member] | Stock Appreciation Rights [Member] | Class A Voting Share [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options exercisable | 128,000 | ||||
Omnibus LTIP [Member] | Class A Voting Share [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding | 218,000 | ||||
Vesting period | 3 years | ||||
Exercise price | $ / shares | $ 1.43 | ||||
Expiration period | 10 years | ||||
Weighted Average Grant Date Fair Value | $ / shares | $ 1.34 | ||||
Dividend yield | 0.00% | ||||
Expected volatility | 114.63% | ||||
Risk free interest rate | 2.20% | ||||
Weighted average expected term | 10 years | ||||
Intrinsic value of outstanding options | $ | $ 0 | ||||
Unrecognized compensation, non-vested portion of stock option | $ | 225,000 | ||||
Total compensation cost for recognized expenses | $ | $ 65,000 | ||||
Shares reserved for issuance | 1,000,000 | ||||
Omnibus LTIP [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Units granted | 121,500 | ||||
Expiration period following vesting date | 1 month | ||||
Omnibus LTIP [Member] | Deferred Stock Units (DSU) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Units granted | 55,944 | ||||
Omnibus LTIP [Member] | Restricted Stock Units and Deferred Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ | $ 34,000 | ||||
Mayors Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding | 627 | 627 | 926 | 3,836 | |
Compensation expense | $ | $ 0 | $ 0 | $ 0 | ||
Options outstanding, Weighted average remaining life (years) | 4 years | ||||
Profit Sharing 401 K Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of employee contribution | 25.00% | ||||
Percentage of employee compensation | 4.00% | ||||
Company matching contributions after exercise of its right to cancel future matching contributions | $ | $ 0 | $ 0 | $ 0 |
Benefit Plans and Stock-Based60
Benefit Plans and Stock-Based Compensation - Summary of Activity of Stock Option Plans and Arrangements (Detail) - $ / shares | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Outstanding Beginning balance | 666,162 | 441,162 | 664,585 |
Granted | 218,000 | 235,000 | 50,000 |
Exercised | 0 | 0 | (111,372) |
Expired | (15,000) | ||
Forfeited | (10,000) | (10,000) | (147,051) |
Outstanding Ending balance | 874,162 | 666,162 | 441,162 |
Outstanding Beginning balance | $ 1.02 | $ 1.15 | $ 1.21 |
Granted | 1.43 | 0.78 | 1.94 |
Exercised | 1.04 | ||
Expired | 7.73 | ||
Forfeited | 0.78 | 1.10 | 1.10 |
Outstanding Ending balance | $ 1.13 | $ 1.02 | $ 1.15 |
Benefit Plans and Stock-Based61
Benefit Plans and Stock-Based Compensation - Summary of Status of Stock Options (Detail) - $ / shares | 12 Months Ended | |||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Weighted average exercise price | $ 1.13 | $ 1.02 | $ 1.15 | $ 1.21 |
Range One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, Upper limit | 0.78 | |||
Range Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, Upper limit | 0.84 | |||
Range Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, Upper limit | 0.89 | |||
Range Four [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, Lower limit | 1.04 | |||
Exercise price, Upper limit | 1.05 | |||
Range Five [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, Lower limit | 1.25 | |||
Exercise price, Upper limit | 1.66 | |||
Range Six [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, Upper limit | 1.43 | |||
Range Seven [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, Upper limit | $ 1.94 | |||
Options Outstanding [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 874,162 | |||
Options outstanding, Weighted average remaining life (years) | 8 years 2 months 12 days | |||
Options outstanding, Weighted average exercise price | $ 1.13 | |||
Options Outstanding [Member] | Range One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 225,000 | |||
Options outstanding, Weighted average remaining life (years) | 8 years 6 months | |||
Options outstanding, Weighted average exercise price | $ 0.78 | |||
Options Outstanding [Member] | Range Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 100,000 | |||
Options outstanding, Weighted average remaining life (years) | 6 years 1 month 6 days | |||
Options outstanding, Weighted average exercise price | $ 0.84 | |||
Options Outstanding [Member] | Range Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 55,000 | |||
Options outstanding, Weighted average remaining life (years) | 5 years 7 months 6 days | |||
Options outstanding, Weighted average exercise price | $ 0.89 | |||
Options Outstanding [Member] | Range Four [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 156,162 | |||
Options outstanding, Weighted average remaining life (years) | 4 years 8 months 12 days | |||
Options outstanding, Weighted average exercise price | $ 1.04 | |||
Options Outstanding [Member] | Range Five [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 70,000 | |||
Options outstanding, Weighted average remaining life (years) | 5 years 2 months 12 days | |||
Options outstanding, Weighted average exercise price | $ 1.48 | |||
Options Outstanding [Member] | Range Six [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 218,000 | |||
Options outstanding, Weighted average remaining life (years) | 9 years 8 months 12 days | |||
Options outstanding, Weighted average exercise price | $ 1.43 | |||
Options Outstanding [Member] | Range Seven [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 50,000 | |||
Options outstanding, Weighted average remaining life (years) | 7 years 9 months 18 days | |||
Options outstanding, Weighted average exercise price | $ 1.94 | |||
Options Exercisable [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable, Number exercisable | 489,491 | |||
Options exercisable, Weighted average exercise price | $ 1.07 | |||
Options Exercisable [Member] | Range One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable, Number exercisable | 74,996 | |||
Options Exercisable [Member] | Range Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable, Number exercisable | 100,000 | |||
Options exercisable, Weighted average exercise price | $ 0.84 | |||
Options Exercisable [Member] | Range Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable, Number exercisable | 55,000 | |||
Options exercisable, Weighted average exercise price | $ 0.89 | |||
Options Exercisable [Member] | Range Four [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable, Number exercisable | 156,162 | |||
Options exercisable, Weighted average exercise price | $ 1.04 | |||
Options Exercisable [Member] | Range Five [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable, Number exercisable | 70,000 | |||
Options exercisable, Weighted average exercise price | $ 1.48 | |||
Options Exercisable [Member] | Range Seven [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable, Number exercisable | 33,333 | |||
Options exercisable, Weighted average exercise price | $ 1.94 |
Benefit Plans and Stock-Based62
Benefit Plans and Stock-Based Compensation - Summary of Stock Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding Beginning balance | 666,162 | 441,162 | 664,585 |
Outstanding Ending balance | 874,162 | 666,162 | 441,162 |
Outstanding Beginning balance | $ 1.02 | $ 1.15 | $ 1.21 |
Outstanding Ending balance | $ 1.13 | $ 1.02 | $ 1.15 |
Mayors Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding Beginning balance | 627 | 926 | 3,836 |
Expired | 0 | (299) | (2,910) |
Outstanding Ending balance | 627 | 627 | 926 |
Outstanding Beginning balance | $ 1.05 | $ 1.05 | $ 5.19 |
Expired | 1.05 | 6.51 | |
Outstanding Ending balance | $ 1.05 | $ 1.05 | $ 1.05 |
Benefit Plans and Stock-Based63
Benefit Plans and Stock-Based Compensation - Summary of Stock Option Plans (Detail) - $ / shares | 12 Months Ended | |||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number outstanding | 874,162 | 666,162 | 441,162 | 664,585 |
Options outstanding and exercisable Weighted average exercise price | $ 1.13 | $ 1.02 | $ 1.15 | $ 1.21 |
Mayors Stock Option Plan [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number outstanding | 627 | 627 | 926 | 3,836 |
Options outstanding and exercisable Weighted average remaining life (years) | 4 years | |||
Options outstanding and exercisable Weighted average exercise price | $ 1.05 | $ 1.05 | $ 1.05 | $ 5.19 |
Mayors Stock Option Plan [Member] | Exercise Prices ($ 1.05) [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise price, Upper limit | $ 1.05 | |||
Number outstanding | 627 | |||
Options outstanding and exercisable Weighted average remaining life (years) | 3 years 1 month 6 days | |||
Options outstanding and exercisable Weighted average exercise price | $ 1.05 |
Income taxes - Additional Infor
Income taxes - Additional Information (Detail) | 12 Months Ended | |||
Mar. 25, 2017USD ($) | Mar. 25, 2017CAD | Mar. 26, 2016USD ($) | Mar. 28, 2015USD ($) | |
Tax Credit Carryforward [Line Items] | ||||
Accrued interest or penalties related to uncertain tax positions | $ 0 | |||
Non cash valuation allowance | 53,311,000 | $ 57,285,000 | ||
Reversal of valuation allowance | 5,300,000 | |||
Deferred income taxes | 5,303,000 | |||
Current tax receivable | $ (140,000) | |||
Current tax payable | $ 35,000 | $ 0 | ||
Minimum [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Deferred tax assets realized period | 1 year | |||
Maximum [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Deferred tax assets realized period | 3 years | |||
Alternative Minimum Tax Credit [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Investment tax credits | $ 1,100,000 | |||
Earliest Tax Year [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Open tax year | 2,011 | |||
Latest Tax Year [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Open tax year | 2,017 | |||
Domestic Tax Authority [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Federal non capital losses | $ 18,300,000 | CAD 24,500,000 | ||
Domestic Tax Authority [Member] | Investment Tax Credit Carryforward [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Investment tax credits | $ 194,000 | CAD 260,000 | ||
Expire date | Between 2023 and 2036. | |||
Foreign Tax Authority [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Federal non capital losses | $ 106,000,000 | |||
Federal net operating loss carry forwards expiration Dates | Beginning in fiscal 2020 through fiscal 2034 | |||
State and Local Jurisdiction [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Federal non capital losses | $ 92,200,000 | |||
Federal net operating loss carry forwards expiration Dates | Beginning in fiscal 2018 through fiscal 2034 | |||
Foreign Country Section Three Eight Two Limitation [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Pre-acquisition net operating loss | $ 35,300,000 | |||
Pre-acquisition net operating loss limited | $ 953,000 |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Deferred tax assets: | ||
Loss and tax credit carry forwards | $ 44,296 | $ 39,710 |
Difference between book and tax basis of property and equipment | 4,951 | 2,731 |
Interest expense limitations carry forward | 7,190 | 10,697 |
Inventory allowances | 383 | 417 |
Other reserves not currently deductible | 1,045 | 807 |
Capital lease obligation | 2,431 | |
Expenses not currently deductible | 776 | 667 |
Other | (27) | (175) |
Net deferred tax asset before valuation allowance | 58,614 | 57,285 |
Valuation allowance | (53,311) | $ (57,285) |
Net deferred tax asset | $ 5,303 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 26 | $ 50 | $ 77 |
Deferred | 550 | 1,591 | (2,636) |
Valuation allowance | (5,853) | (1,591) | $ 2,559 |
Income tax expense | $ (5,277) | $ 50 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Income Tax Disclosure [Abstract] | |||
Canadian statutory rate | $ (93) | $ 1,460 | $ (2,275) |
Rate differential for U.S. operations | 545 | 358 | (443) |
Utilization of unrecognized losses and other tax attributes | (7,404) | (1,768) | |
Valuation allowance on deferred tax assets | 1,538 | 177 | 2,636 |
Permanent differences and other | 137 | (177) | $ 82 |
Income tax expense | $ (5,277) | $ 50 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) | Mar. 25, 2017ClassVote$ / shares | Mar. 26, 2016$ / shares |
Class of Stock [Line Items] | ||
Preferred shares par value | $ / shares | $ 0 | $ 0 |
Number of classes of common stock outstanding | Class | 2 | |
Class A Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock voting rights per share | 1 | |
Class B Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock voting rights per share | 10 |
Capital Stock - Summary of Comm
Capital Stock - Summary of Common Stock Outstanding (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |||
Class of Stock [Line Items] | |||||
Beginning Balance, Shares | 17,960,881 | 17,960,881 | |||
Exercise of stock options, Shares | 0 | 0 | 111,372 | ||
Ending Balance, Shares | 17,960,881 | 17,960,881 | 17,960,881 | ||
Balance as of beginning balance | $ 69,601 | $ 69,601 | |||
Exercise of stock options | 0 | 0 | $ 116 | ||
Balance as of ending balance | $ 69,601 | $ 69,601 | $ 69,601 | ||
Class A Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Beginning Balance, Shares | 10,242,911 | 10,242,911 | |||
Exercise of stock options, Shares | 0 | 0 | |||
Ending Balance, Shares | 10,242,911 | 10,242,911 | 10,242,911 | ||
Balance as of beginning balance | $ 30,988 | [1] | $ 30,988 | ||
Exercise of stock options | 0 | 0 | |||
Balance as of ending balance | $ 30,988 | [1] | $ 30,988 | [1] | $ 30,988 |
Class B Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Beginning Balance, Shares | 7,717,970 | 7,717,970 | |||
Exercise of stock options, Shares | 0 | 0 | |||
Ending Balance, Shares | 7,717,970 | 7,717,970 | 7,717,970 | ||
Balance as of beginning balance | $ 38,613 | [1] | $ 38,613 | ||
Exercise of stock options | 0 | 0 | |||
Balance as of ending balance | $ 38,613 | [1] | $ 38,613 | [1] | $ 38,613 |
[1] | unlimited shares authorized |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance charge | $ 1,400,000 | ||
Restructuring charges | $ 842,000 | $ 754,000 | 2,604,000 |
Employee retention related charges | 600,000 | ||
Loss on sublet of Tamarac facility included in restructuring charges | 500,000 | ||
Commission costs associated with sublease agreement included in restructuring charges | $ 100,000 | ||
Payments for restructuring charges | 800,000 | 1,800,000 | |
Accounts Payable and Accrued Liabilities [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accounts payable and accrued liabilities related to restructuring charges | $ 0 | $ 300,000 |
Commitments - Minimum Future Pa
Commitments - Minimum Future Payments Under Leases (Detail) $ in Thousands | Mar. 25, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 14,924 |
2,019 | 14,515 |
2,020 | 14,221 |
2,021 | 12,674 |
2,022 | 12,145 |
Thereafter | 42,799 |
Operating Leases, Future Minimum Payments Due, Total | $ 111,278 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 23.2 | $ 21.8 | $ 23.4 |
Contingent rent expense | $ 0.8 | $ 0.5 | $ 0.7 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Mar. 25, 2017 | Mar. 26, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Guaranteed amount of private label credit card sales | $ 8.4 | $ 9.3 |
Reserve associated with guaranteed credit card sales | $ 0.5 | $ 0.5 |
Segmented Information - Additio
Segmented Information - Additional Information (Detail) | 12 Months Ended |
Mar. 25, 2017StoreSegmentLocation | |
Segment Information [Line Items] | |
Number of reportable segments | Segment | 2 |
Birks Brand [Member] | Retail Segment [Member] | |
Segment Information [Line Items] | |
Number of retail stores | 26 |
Mayors Brand [Member] | Retail Segment [Member] | |
Segment Information [Line Items] | |
Number of retail stores | 17 |
Rolex Brand [Member] | Retail Segment [Member] | |
Segment Information [Line Items] | |
Number of retail stores | 1 |
Brinkhaus Brand [Member] | Retail Segment [Member] | |
Segment Information [Line Items] | |
Number of retail locations | Location | 2 |
Segmented Information - Schedul
Segmented Information - Schedule of Information Relating to Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Segment Reporting Information [Line Items] | |||
Sales to external customers | $ 286,921 | $ 285,826 | $ 301,637 |
Unadjusted gross profit | 109,549 | 112,714 | 123,518 |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Inter-segment sales | 13,586 | 14,002 | 15,891 |
Retail Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Unadjusted gross profit | 108,487 | 110,023 | 118,128 |
Retail Segment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales to external customers | 283,807 | 281,940 | 293,146 |
Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Unadjusted gross profit | 1,062 | 2,691 | 5,390 |
Other Segments [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Inter-segment sales | 13,586 | 14,002 | 15,891 |
Other Segments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales to external customers | $ 3,114 | $ 3,886 | $ 8,491 |
Segmented Information - Sched76
Segmented Information - Schedule of Reconciliations of Segments Gross Profits and Certain Unallocated Costs to Consolidated Gross Profits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Segment Reporting [Abstract] | |||
Unadjusted gross profit | $ 109,549 | $ 112,714 | $ 123,518 |
Inventory provisions | (1,250) | (2,084) | (3,151) |
Other unallocated costs | (177) | (1,630) | (2,551) |
Adjustment of intercompany profit | 312 | 387 | (11) |
Gross profit | $ 108,434 | $ 109,387 | $ 117,805 |
Segmented Information - Sched77
Segmented Information - Schedule of Sales to External Customers and Long-Lived Assets by Geographical Areas (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales, total | $ 286,921 | $ 285,826 | $ 301,637 |
Long-lived assets, total | 23,180 | 29,912 | 29,029 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales, total | 116,436 | 128,651 | 143,384 |
Long-lived assets, total | 13,921 | 18,610 | 17,072 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales, total | 170,485 | 157,175 | 158,253 |
Long-lived assets, total | 9,259 | 11,302 | 11,957 |
Jewelry and Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales, total | 122,405 | 127,220 | 141,781 |
Timepieces [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales, total | $ 164,516 | $ 158,606 | $ 159,856 |
Related Party Transactions - Ba
Related Party Transactions - Balance Related to Related Parties (Detail) | 12 Months Ended | ||||
Mar. 25, 2017USD ($) | Mar. 26, 2016USD ($) | Mar. 28, 2015USD ($) | Feb. 28, 2015USD ($) | Feb. 28, 2015CAD | |
Related Party Transactions [Abstract] | |||||
Purchases of inventory from supplier related to shareholder | $ 503,000 | $ 189,000 | |||
Management fees to related parties | $ 154,000 | 155,000 | 238,000 | ||
Consultant fees to a related party | 150,000 | 173,000 | 175,000 | ||
Expense reimbursement to a related party | 178,000 | 201,000 | 241,000 | ||
Interest expense on cash advance received from controlling shareholder | 165,000 | 165,000 | 165,000 | ||
Compensation paid to a related party | 67,000 | 136,000 | |||
Accounts payable to supplier related to shareholder | 17,000 | ||||
Accounts payable to related parties | 57,000 | 38,000 | 447,000 | $ 60,000 | CAD 75,000 |
Interest payable on cash advance received from controlling shareholder | $ 24,000 | $ 25,000 | $ 136,000 |
Related party transactions - Ad
Related party transactions - Additional Information (Detail) | Jan. 01, 2017EUR (€) | Nov. 17, 2015 | Jun. 08, 2011EUR (€) | Jun. 30, 2016 | Apr. 30, 2015 | Feb. 28, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2014CHF (SFr) | Aug. 31, 2012USD ($) | Jun. 30, 2011USD ($) | Jun. 30, 2009USD ($) | Jun. 30, 2009CAD | May 31, 2009USD ($) | Feb. 28, 2009USD ($) | Aug. 31, 2002 | Mar. 25, 2017USD ($) | Mar. 25, 2017EUR (€) | Mar. 26, 2016USD ($) | Mar. 26, 2016EUR (€) | Mar. 28, 2015USD ($) | Mar. 28, 2015EUR (€) | Mar. 29, 2014USD ($) | Mar. 30, 2013USD ($) | Feb. 28, 2015CAD |
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Agreement additional renewal term | 1 year | |||||||||||||||||||||||
Legal fees incurred | $ 60,000 | $ 57,000 | $ 38,000 | $ 447,000 | CAD 75,000 | |||||||||||||||||||
Percentage of purchase price on cost | 45.00% | |||||||||||||||||||||||
Purchase price of diamonds | 503,000 | 189,000 | ||||||||||||||||||||||
Related party expenses | 178,000 | 201,000 | 241,000 | |||||||||||||||||||||
Amount paid | 67,000 | 136,000 | ||||||||||||||||||||||
Executive Chairman [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Amount paid | 67,000 | |||||||||||||||||||||||
Annual compensation | € | € 250,000 | |||||||||||||||||||||||
Montrovest BV [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Amount paid to related party | € 140,000 | $ 0 | € 0 | 116,000 | € 105,000 | 178,000 | € 140,000 | |||||||||||||||||
Notice days for non renewal | 60 days | |||||||||||||||||||||||
Agreement additional renewal term | 1 year | |||||||||||||||||||||||
Irrevocable letter of credit | 5,000,000 | |||||||||||||||||||||||
Agreement expiration date | Dec. 31, 2015 | |||||||||||||||||||||||
Cash received from related party | $ 3,000,000 | $ 2,000,000 | ||||||||||||||||||||||
Annual interest rate | 11.00% | 16.00% | 16.00% | |||||||||||||||||||||
Effective interest rate | 12.20% | 17.80% | ||||||||||||||||||||||
Fee as a percentage of outstanding principal amount | 7.00% | 7.00% | ||||||||||||||||||||||
Cash received from related party | $ 5,000,000 | |||||||||||||||||||||||
Transaction amount | 75,000 | |||||||||||||||||||||||
Partial repayment of cash advance | $ 3,500,000 | |||||||||||||||||||||||
Advances payable to related party | $ 1,500,000 | 1,500,000 | ||||||||||||||||||||||
Montrovest BV [Member] | Minimum [Member] | Potential Transaction [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Net cash proceeds from an equity issuance | $ 5,000,000 | |||||||||||||||||||||||
Gestofi [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Amount paid to related party | $ 154,000 | € 140,000 | 39,000 | € 35,000 | ||||||||||||||||||||
Agreement additional renewal term | 1 year | 1 year | 1 year | 1 year | ||||||||||||||||||||
Agreement expiration date | Sep. 30, 2017 | Sep. 30, 2017 | ||||||||||||||||||||||
Agreement beginning date | Jan. 1, 2016 | Aug. 1, 2009 | Aug. 1, 2009 | |||||||||||||||||||||
Related party expenses | $ 12,500 | $ 13,310 | SFr 13,000 | $ 10,324 | CAD 13,700 | |||||||||||||||||||
Amount paid | $ 16,666 | |||||||||||||||||||||||
Prime Investments S.A. [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Purchase price of diamonds | $ 500,000 | $ 200,000 | $ 0 | |||||||||||||||||||||
Ownership percentage | 15.00% | |||||||||||||||||||||||
Regaluxe [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Related party expenses | $ 178,000 | $ 201,000 | 241,000 | |||||||||||||||||||||
Regaluxe [Member] | Maximum [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Related party expenses | $ 260,000 | $ 250,000 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Fair Value Disclosures [Abstract] | |||
Percentage of consolidated sale | 42.00% | 39.00% | 36.00% |
Bank indebtedness | $ 70,434 | $ 62,431 | |
Long-term debt bearing interest at variable rates | 30,900 | 40,000 | |
Fixed-rate long-term debt | 2,400 | 12,400 | |
Fair value of fixed long-term debt and other long-term liabilities | $ 2,300 | $ 12,900 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | May 11, 2017 | Mar. 25, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||
Line of credit | $ 110,000,000 | ||
Lease Financing [Member] | |||
Subsequent Event [Line Items] | |||
Borrowed | $ 2,200,000 | ||
Subsequent Event [Member] | Lease Financing [Member] | |||
Subsequent Event [Line Items] | |||
Line of credit | $ 4,750,000 |