Birks & Mayors Sales Improve 11.6%, Back to Profit

(IDEX Online News) – Retailer Birks & Mayors Inc., which operates 57 luxury jewelry stores across Canada, Florida and Georgia, announced a “marked improvement” in its financial results for the fiscal year ended March 31, 2012 compare to the fiscal 2011.

Net sales increased 11.6 percent, or $31.4 million to $302.3 million; comparable store sales increased by 5 percent for the full fiscal year and the gross profit margin improved by 114 basis points over the prior year.

After posting a net loss of $7.8 million in fiscal 2011, the retailer is reporting a modest profit of $219,000 for the fiscal year.

“Fiscal 2012 marked a return to profitability through continued improvement in sales and gross profit margin facilitated by the success of our merchandising and marketing initiatives and the recovering economic environments in the U.S. and Canada,” said president and CEO Jean-Christophe Bédos.

“As we enter the new fiscal year, we plan to continue to grow our sales and gross profit margin through effectively managing our merchandising and marketing programs while we place considerably more efforts on improving our customers’ experience when buying fine jewelry and watches. We will also concentrate our efforts in developing the Birks brand and our client’s favorite product categories.”

The company said the comparable store sale increase (6 percent in the U.S. and 4 percent in Canada) was primarily related to an increase in the average sale transaction as demand for luxury retail products continued to improve in both countries.

The increase in gross profit margin, it said, was primarily attributable to retail price increases and a reduction in promotional pricing activities.