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Birks & Mayors FY Sales +6%, Narrows Loss

Jul 7, 2011 4:34 PM   By Jeff Miller
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RAPAPORT... Birks & Mayors reported a revenue increase of 6.2 percent year on year to $270.9 million, while cost of sales increased by only 2.8 percent to $154.9 million during its fiscal year 2011. The retailer was able to narrow its loss to $7.7 million for the year that ended March 26, from $19.5 million one year earlier. A stronger currency in Canada boosted the sales figure by  $9.6 million.

During the fiscal year, Birks & Mayors experienced a 2 percent increase in same-store sales, and the gross profit margin grew by 180 basis points. Same-store sales rose by only 1 percent for U.S. operations and rose 2 percent in Canada.

Inventory totaled $141.8 million as of March 26, down slightly from one year earlier.  Bank indebtedness  totaled $61.9 million for fiscal 2011 as compared with $64.5 million for fiscal 2010.  The decrease was  a result of  utilizing cash flow from operations to de-leverage the company by lowering the level of funding on its senior secured revolving credit facility. The company’s excess borrowing capacity was $20.5 million as of March 26, compared with $17.9 million at the end of the prior fiscal year.

Tom Andruskevich, the president  Birks & Mayors, said, ''Fiscal 2011 marked a significant turn-around in operating performance since the very difficult economic environment we experienced in the previous two years. As we enter the new fiscal year, we are very encouraged by our strong first quarter sales performance along with the confidence and support demonstrated by our lenders in amending our credit facilities and extending our line of credit by four years, at improved terms. We plan to continue to build on our sales momentum and will continue to manage the level and productivity of our inventory, control expenses and limit capital expenditures while continuing to focus on providing superior customer service and maintaining strong client relationships.”

The jewelry retailer closed its first fiscal quarter of 2012 on June 30, and reported a sales increase of 19 percent to  $71.2 million and comparable store sales rose 10 percent. Same-store sales in the U.S. rose by 15 percent and they rose by 6 percent in Canada.

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Tags: birks, Canada, Jeff Miller, mayors, revenue, sales
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