Birks & Mayors Post 1% Sales Rise in 3Q

Birks & Mayors posted a sales  increase of 1% in the third quarter

Birks & Mayors Inc. earned $89.3 million in net sales for the third quarter period ended December 26, 2009, a 1 percent increase compared to the 2008 figures, the company reported Wednesday. The luxury jewelry retailer was hurt by declining sales in the U.S. while enjoying a rise in sales in Canada.

The $6.2 million year-over-year increase in revenue was partly attributed to currency exchange rates, as sales by the company's Canadian operations were converted into a weak U.S. dollar from the relatively stronger Canadian dollar.

Comparable store sales during the period decreased by 4 percent, which comprised a 9 percent decline in sales of the U.S. stores, partially offset by a 2 percent increase in sales by the stores in Canada.

“This year’s third quarter sales results continued to reflect the recessionary environment and severe drop in consumer confidence, which has reduced demand for luxury retail products, especially in our Florida market,” said President and CEO Thomas A. Andruskevich. “We are encouraged, however, by the increase in sales in our Canadian market during the holiday sales period.”

Birks & Mayors also announced the closure of two stores in Florida, one in The Shops at Sunset Place in South Miami and the other in City Place in West Palm Beach. Both will be closed in January. The company has plans to close two locations in Canada, its Hillside Shopping Centre store in Victoria, British Columbia and its West Edmonton Mall store in Edmonton, Alberta. Both of these stores are expected to close in March.

The four stores join two other earlier stores closed by Birks & Mayors in 2009 for underperformance. However, the company plans to open a new Mayors store in The Gardens Mall in West Palm Beach, Florida, later in the month.

According to Andruskevich, the company will continue to analyze store profitability, closing underperforming ones while seeking opportunities to open new stores in locations that meet their profitability requirements.

“As we enter our last fiscal quarter, we will continue to carefully manage the level and productivity of our inventory, reduce expenses wherever possible and limit capital expenditures all with an aim to optimize cash flow,” Andruskevich added.