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RAPAPORT... Birks & Mayors Inc. reported that revenue fell 3 percent year on year to $292.8 million for the fiscal year that ended on March 30; however, same-store sales rose 4 percent. The retail jeweler closed 11 underperforming locations, resulting in a drop in sales of $7.3 million, and the previous fiscal year ran 53-weeks with the extra week accounting for $4.4 million in additional revenue. Comparable-store sales in Canada surged 7 percent during the fiscal year and rose 2 percent for the company's U.S. operations. Cost of sales slipped about 1.5 percent to $166.6 million and gross profit was 43.1 percent of sales, down from 44.1 percent one year earlier. Profit rose to $1.5 million, or 11 cents per share, from $219,000, or 2 cents per share, one year earlier. During the fiscal year, Birks & Mayors lowered the level of inventory 4 percent to $137 million and reduced its long term debt 16 percent to $38.1 million. The company’s excess borrowing capacity under its senior secured revolving credit facility was $16.4 million as of March 30, compared with $23.7 million at the end of the prior fiscal year. Jean-Christophe Bédos, the CEO of Birks & Mayors, said, “Fiscal 2013 represented a year of transition for the company as we made significant progress toward implementing key initiatives and strategies to improve our business and raise our profitability over the next few years. The impact of some of these initiatives can already be seen in the company’s success in growing comparable-store sales and increasing net income despite a softer than anticipated market environment in Florida and Canada. As we start a new fiscal year, we plan to continue our strategy to grow sales and gross profit margin by delivering a total brand experience that consistently exceeds our clients’ expectations through higher quality products, superior client service and an improved luxury environment.”
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