Birks & Mayors Net Loss Shrinks

Birks & Mayors net sales in the first quarter of the fiscal year increased 21.9 percent to $68.6 million, from $56.2 million in the prior year. The quarter had 14 weeks, compared to 13 weeks in the first quarter of the prior year. Excluding the extra selling week, sales rose 14.3 percent.

Net loss decreased $375,000, to -$913,000, from -$1,288,000 in the prior year, after Birks paid $11.7 million of its bank debt. Positive signs are also reflected in comparable store sales, which increased 9 percent.

Gross margin increased to 47.9 percent of sales from 47.7 percent. Gross profit increased to $32.8 million from $26.8 million in the thirteen weeks ended June 25, 2005. The improvement in gross margin resulted from an emphasis on increasing the sales of higher margin merchandise, said the company.

Birks & Mayors reiterated its guidance on the business outlook for this fiscal year. Comparable store sales are projected to increase, though at a more moderate rate of increase for the full year than realized in Fiscal 2006.

The luxury retail market continues to be very competitive, the company said in a release. Factors such as rising interest rates, the equity markets, general level of consumer confidence, increased cost of oil, and commodity prices may influence the company’s sales and margin plans for Fiscal 2007.