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RAPAPORT... The United States' dollar quietly slipped in value against Canada's dollar in September and the dollar fell to almost CAD0.90 in November. But the greenback has recovered somewhat as it stands $1=CAD0.98 midday November 28.
Nonetheless, jeweler Birks & Mayors Inc. reported lowering prices on select goods at Canada stores on November 27 as a result of the dollar's decline.
Thomas A. Andruskevich, president and CEO of Birks & Mayors, announced the price changes on many pieces from Birks diamond jewelry collection. Price drops were also in place for prestigious watch and fine jewelry brands including Cartier, Van Cleef & Arpels, Tag Heuer, Baume & Mercier, Jaeger Le Coultre, Marco Bicego, H.Stern and Roberto Coin.
"Our strong purchasing power has allowed us the opportunity to negotiate lower costs with our partners and suppliers, so that we may pass on savings to Canadian consumers in the spirit of fair exchange," Andruskevich said.
"This measure reinforces our commitment to offering fair value to our clients, which, in turn, should make their shopping experience especially beneficial this holiday season."
Birks' price reductions remain dependent upon exchange rates and will remain in effect only as long as the marketplace permits the company stated.
"While Birks was able to take this aggressive action now in favor of the consumer, market conditions may put upward pressure on prices in early 2008," he said. The rising price of precious metals in general "will likely cause price increases in 2008 on many jewelry and timepiece products. Birks being able to reduce prices is an extraordinary occurrence and presents a unique opportunity for consumers to take advantage of a very limited window in a highly volatile marketplace," Andruskevich said.
Birks & Mayors operates 69 luxury jewelry stores across Canada and the states of Florida and Georgia. Earlier in November the company executed an asset purchase agreement for Brinkhaus, a privately-owned luxury jeweler in Canada.
Brinkhaus sells high-end jewelry and fine Swiss timepieces in Calgary and Vancouver. The acquisition is expected to close upon the fulfillment of certain pre-closing conditions later this month.
Brinkhaus’ annual sales approximated $15 million in its most recent year. The former principals, Norbert and Kim Brinkhaus, will remain involved to oversee the Brinkhaus stores in Canada.
Andruskevich said, “The Brinkhaus team shares the same culture, vision and commitment to excellence as Birks & Mayors and joins us with a proven track record of growth."
For the remainder of fiscal 2008, which will include five months of Brinkhaus results, Birks & Mayors expects the operations of Brinkhaus to positively contribute to EBITDA and net income, as well as positively contribute to next fiscal year’s results.
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