Birks & Mayors Reports Strong Q4 Sales, Yet Posts Fiscal Year Loss

Birks & Mayors Inc. announced net sales of $255.1 million in the fiscal year ended March 27. This a 6 percent decrease compared to the prior year. The company expects to post a net loss of between $18 million to $20 million.

The decrease in annual sales is primarily related to lower comparable store sales, the company said on Monday. Comparable store sales decreased by 6 percent, reflecting a 12 percent decline in sales in the U.S. and a 1 percent decline in sales in Canada.

The decline in income was partially offset by $5.3 million of higher sales due to favorable exchange rates.

For the fourth quarter, net sales were $63.6 million, a 29 percent increase compared to the fourth quarter of last fiscal year. The increase in sales was due to an 18 percent rise in comparable store sales.

The North American jeweler attributed the increase in comparable store sales to the success of the company’s Winter sale in January and other special sales events held during March, which generated significantly higher sales at lower gross margins, and improved the company’s inventory position and cash flow.

“Birks’ sponsorship of the 2010 Vancouver Olympic Games not only achieved our goal of driving traffic and sales to our Canadian stores but also gave our Birks brand an international stage to present itself as a world class luxury brand,” according to CEO Thomas A. Andruskevich.

The company plans to issue its full year financial results after the completion of its annual audit which is expected to be in early July.