v3.26.1
Business Acquisition
 12 Months Ended
Mar. 28, 2026
Business Combination [Abstract]  
Business Acquisition
3.
Business Acquisition:
On June 6, 2025, the Company entered into a share purchase agreement (the “Share Purchase Agreement”) with the shareholders of 1067830 Ontario Limited (“the Target”), a company incorporated under the laws of Ontario, to acquire the Target and its wholly-owned subsidiaries which operate four retail locations in Toronto, Ontario, under the European Boutique (“European”) brand and are engaged primarily in luxury timepieces and jewelry retail activities.
On July 8, 2025, the Company acquired all of the outstanding shares of 1067830 Ontario Limited, along with its wholly-owned subsidiaries, for a total purchase price of $10.8 million (or $8.1 million net of cash acquired) including purchase price adjustments for working capital. The purchase price was paid with $9.7 million of cash consideration at closing and a note payable of $1.1 million payable to the seller on the first anniversary of the closing date. The vendor note payable is interest bearing at the CORRA rate plus 2.3% per annum. The combination of the Company and European creates a leading Canadian-based luxury jewelry and timepieces company with a more diverse multi-brand portfolio. In connection with the acquisition, the Company incurred $0.4 million of acquisition-related costs ($0.2 million in the fiscal year ending March 29, 2025) which were recorded as SG&A in the consolidated statement of operations.
The Company accounted for the acquisition of European under the acquisition method of accounting for business combinations and the results of European were consolidated with those of the Company from the date of acquisition. Accordingly, the cost was allocated to the underlying net assets based on their respective fair values.
The Company has allocated the purchase price to the assets acquired and the liabilities assumed based on management’s best estimates of their values.
The following table presents the fair value of the assets acquired and liabilities assumed from European on July 8, 2025:
 
    
Fair Value at
Acquisition
Date

(In thousands)
  
Assets Acquired and Liabilities assumed
   
Cash and cash equivalents
    $ 2,731  
Accounts receivable and other receivables
      545  
Inventories
      9,035  
Prepaid and other current assets
      261  
Property and equipment
      1,887  
Operating lease
right-of-use
assets
      8,594  
Tradename
(1)
      677  
  
 
 
  
Identifiable assets acquired
      23,730  
  
 
 
  
Accounts payable

3,948  
Accrued liabilities
      384  
Operating lease liabilities
      8,594  
  
 
 
  
Liabilities assumed
      12,926  
    
 
 
  
Net assets acquired
    $ 10,804  
  
 
 
  
 
(1)
 
The fair value of the tradename was determined using the relief-from-royalty method, an income approach valuation methodology. The tradename is being amortized on a straight-line basis over 15 years.
 
Supplementary
information - Unaudited:
European incurred a net profit of $1.5 million for the period from July 8 to March 28, 2026. Revenue for this period was $19.5 million. If European had been acquired on March 30, 2025, revenue of the Company would have been $213.1 
million for the year ended March 28, 2026 ($203.5 million – March 29, 2025). However, due to a lack of U.S. GAAP-specific data prior to the acquisition of European, pro-forma profit or loss of the combined entity for the year ending March 28, 2026 cannot be determined reliably.