Mayor's Losses Shrink, Stockholder Wants Merger
August 03, 04
Mayor's Jewelers controlling stockholder Henry Birks & Sons notified Mayor's board that Birks was interested in combining the Mayor's and Birks companies. The announcement came just three days after the retailer released improved quarterly results.
The Mayor's Board of Directors said it has formed a special committee composed only of independent board members in order to consider the Birks proposal. The two companies have not discussed the material terms of the proposal.
Mayor’s has been going through a difficult period financially, seeing business operations improving, but still operating in the red.
The company reported first fiscal quarter net loss decreased 39 percent to $2.3 million compared to a net loss of $3.8 million the year before.
Net sales were $29.1 million compared to $24.5 million for the prior year, an 18.9 percent increase. Comparable store sales increased 18.5 percent, while gross profit was $12.2 million or 41.7 percent of sales, compared to $9.9 million or 40.4 percent of sales during the prior year first fiscal quarter.
The company credits the increase in gross profit and gross margin to continued execution of merchandising strategies, which began to be implemented last fiscal year.