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Mayors Sale Saves Birks from Loss

Jul 5, 2018 8:28 AM   By Rapaport News
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RAPAPORT... Birks Group’s profit more than doubled in the past fiscal year after the Canadian retailer sold subsidiary Mayors Jewelers.

Profit grew to $11.7 million for the 12 months ending March 31 from $4.9 million a year ago, the jeweler reported Tuesday. The company offloaded Mayors to UK-based Aurum Holdings for $106.8 million in October, boosting its profit figure by $29.9 million. Excluding that deal, Birks recorded a loss of $16.8 million.

“Our fiscal 2018 results are reflective of the major transformative changes undertaken by the company during the fiscal year, most notably the sale of Mayors, which enabled us to substantially reduce our debt and strengthen our balance sheet,” Birks CEO Jean-Christophe Bédos said Wednesday. “This allowed us to better position the company for long-term growth and the creation of shareholder value.”

Group revenue fell 2% to $114.4 million for the year, mainly due to weakening consumer demand, particularly during the holiday period. Renovations at two of the retailer’s three flagship stores also resulted in a temporary sales decline, it explained.

Birks operates 27 stores under its own brand across Canada. It also runs two Brinkhaus stores in Vancouver and Calgary, and one Rolex store in Orlando, Florida.

Image: DIIu 
Tags: birks, birks group, Brinkhaus, Jean-Christophe Bédos, Mayor’s, Mayors Jewelers, Rapaport News, Rolex
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