Shares of the Birks Group Inc. (BGI) stock were rising in the pre-market trading session today on May 17, 2021, after recording the gain of 16.34% at the previous closing. BGI stock price rose by 1.70% to reach $2.39 a share as of this writing. The rising BGI stock price is not the result of any news announced by the Birks Group in recent times. Let’s try to understand more of it.
What’s Happening?
There is no specific reason associated with BGI stock to justify the bullish trend so far. No announcement by BGI stock, no recent earning report, no analysts’ upgrades or increased targeted per share price support the BGI rally. This situation usually arises in the stock market and confuses the investors in decision-making. For your convenience, let’s discuss some past events of Birks Group.
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Sales Results of FY 2021 Holiday Season:
BGI stock at the mid of January announced its sales results of the FY 2021 holiday period from November 1, 2020, through December 26, 2020, according to which net sales for BGI stock were 0.2% lower than the previous year. The reason for this decline was governmental restrictions in certain regions of Canada due to the outbreak of COVID-19. This result in the closure of in-person shopping for 7 out of 29 retail locations of the BGI stock in the holiday season.
The remaining stores’ sales were increased by 6.8% in the holiday period. Increased online shopping trend due to the “Stay Home, Stay Safe” slogan resulted in the 176.0% increased eCommerce sales for BGI stock in the holiday season. Considering the high rate of online shopping, BGI stock invested in digital equipment in order to provide the facility of high-quality video shopping to its clients.
COVID-19 Impact:
Many businesses were affected by coronavirus escalation across the globe and BGI stock is one of them as Its six Ontario stores were temporarily closed for in-person shopping because of provincial restrictions caused by the second wave of COVID-19. Many other stores were also temporarily closed in Quebec for most of the holiday season.
Conclusion:
BGI stock price is continuing the rising momentum despite the absence of any particular reason associated with it. Though Birks Group’s business was greatly hit by COVID-19, but its growth in the eCommerce business has reduced the damage to some extent. Now the rollout of the vaccine has reduced the chances of spreading this deadly pandemic and the future looks bright for BGI stock.