Birks & Mayors Reports Decline in Sales and Profits

Birks & Mayors comparable store sales decreased 19% in H1

Birks & Mayors, an operator of luxury jewelry stores across Canada and the U.S reported a decline in sales and profits in its mid-year report released Wednesday. For the six-month period ending September 26, net sales decreased 23.5 percent to $102.2 million, compared with $133.6 million in the same period last year.

Comparable store sales also decreased 19 percent, which the company said was due in part to a decline in store traffic and further reflected the challenges faced overall by the luxury retail sector.

Reported gross profit was $43.5 million, compared to $60.3 million in 2008. Retail pricing pressures associated with generating sales in the difficult economic climate was the primary reason for the profit decline, the company reported.

President and Chief Executive Officer Tom Andruskevich said while performance was impacted by the economic downturn and a drop in consumer demand for luxury product such as jewelry and timepieces, the company's cost and inventory reduction programs initiated in 2008 were able to partially offset some of the declines.

"As we enter the extremely important holiday season, we will continue to carefully manage the level and productivity of our inventory, reducing our operating costs wherever possible and limiting capital expenditures, all with the focus of optimizing cash flow," Andruskevich said.