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RAPAPORT... Retailer Birks & Mayors increased its revenue nearly 12 percent year on year to $302.3 million for the 12 months that ended on March 31. The company reported a 9 percent year on year increase in cost of sales, at $169.1 million and improved its net profit to $219,000 from a loss of $7.7 million one year earlier. At the close of its financial year, Birks & Mayors held bank indebtedness of $61.6 million and long-term debt of $45.4 million, both figures were slightly lower than the previous year.  Same-store sales for the fiscal year rose 5 percent and gross profit margin improved by 114 basis points. Birks & Mayors attributed its solid results to stronger comparable-store sales, a $3.1 million benefit from a weaker U.S. dollar, and $7.6 million worth of higher sales from a new store, which offset a $4.6 million decrease in sales associated with the closure of six stores. Birks & Mayors held inventory of $143.5 million as of March 31 compared with $141.8 million one year earlier. The increase was primarily driven by a 6 percent increase in comparable-store inventory, or $7.7 million, partially offset by $5 million of lower inventory due to the closure of six retail stores. Jean-Christophe Bédos, the president of Birks & Mayors, said, “Fiscal 2012 marked a return to profitability through continued improvement in sales and gross profit margin facilitated by the success of our merchandising and marketing initiatives and the recovering economic environments in the U.S. and Canada. As we enter the new fiscal year, we plan to continue to grow our sales and gross profit margin through effectively managing our merchandising and marketing programs while we place considerably more efforts on improving our customers’ experience when buying fine jewelry and watches. We will also concentrate our efforts in developing the Birks brand and our client’s favorite product categories.”
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