Birks & Mayors Fiscal 2005 Net Sales Increase 14.6%

Birks & Mayors Inc. yesterday reported that net sales for the fiscal year ended March 25, increased 14.6 percent to $274.3 million, from $239.3 million in the prior year. During the period, comparable store sales increased 11 percent; gross profit margin rose 150 basis points to 47.2 percent of net sales; and net income increased by $4.5 million, or 389.5 percent, to $5.7 million, from $1.2 million in the prior year.

The rise in comparable store sales was primarily driven by an increase in the average sales amount per transaction, said the company. Comparable store sales in the company's Canadian markets increased 7 percent, while comparable store sales in the U.S. markets grew 13 percent. Also contributing to the increase in fiscal 2005 net sales was approximately $7.6 million due to the translation of the Canadian operations into U.S. Dollars at higher exchange rates due to the strengthening of the Canadian Dollar.

Thomas A. Andruskevich, President and CEO said, "Fiscal 2005 marked a highly productive period for us – both financially and operationally. We made considerable progress toward achieving our mission to become a world class luxury brand, as evidenced by our strong sales and earnings performance this year. We also positioned our company for sustained growth with the completion of our acquisition of Mayor's Jewelers."

Andruskevich continued, “As we look ahead, we believe the strategies we have identified, along with our solid foundation and talented management team, have us poised to deliver another solid year in fiscal 2006."

The company projects comparable store sales in fiscal 2006 to increase, however, at a more moderate rate than realized in fiscal 2005. It plans to open two new Mayors stores. The first is scheduled to open prior to the 2006 holiday season in Bonita Springs, Florida. The second is scheduled to open in the spring of 2007 in Weston, Florida.

“Gross margins are planned to continue to improve through successful merchandising and retail strategies,” the company said, adding that these strategies include the continued emphasis on internally manufactured and designed products exclusive to Birks & Mayors.

It warns that luxury retail market competitiveness, rising interest rates, the equity markets, the general level of consumer confidence, the increased cost of oil, and commodity prices “may have an influence on the realization of the company's sales and margin plans for fiscal 2006.”

Birks & Mayors is operates luxury jewelry stores in the U.S and Canada. In November 2005, the company completed its acquisition of Mayor's Jewelers.