Birks & Mayors Reports Full Year Fiscal 2011 Financial Results And First Quarter Fiscal 2012 Sales Results

Sales for the first quarter of fiscal 2012 increased 18.8% or $11.3 million, to $71.2 million, as compared to $59.9 million during the first quarter of last fiscal year. The increase in sales reflects higher comparable store sales of 10% and $2.3 million of higher sales related to translating the sales of the Company’s Canadian operations into U.S. dollars due to the stronger Canadian dollar. The increase in comparable store sales of 10% was comprised of a 15% increase in sales of the U.S. stores and a 6% increase in sales from the stores in Canada.

Tom Andruskevich, President and Chief Executive Officer of Birks & Mayors, commented: “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.”

Conference Call Information

A conference call to discuss fiscal 2011 results is scheduled for Wednesday, July 6, 2011 at 4:45 p.m. Eastern Time . Investors and analysts in the U.S. and Canada interested in participating in the call are invited to dial 1-800-289-0544 approximately ten minutes prior to the start of the call. All other international callers please dial 1-913-312-0963 prior to the presentation. The conference call will also be web-cast live at www.birksandmayors.com. A replay of this call will be available until Midnight Eastern Time on July 14, 2011 and can be accessed by dialing 1-877-870-5176 and entering conference PIN number 1980373.

Birks & Mayors is a leading operator of luxury jewelry stores in the United States and Canada. As of June 30, 2011, the Company operated 32 stores (Birks Brand) across most major metropolitan markets in Canada, two retail locations in Calgary and Vancouver under the Brinkhaus brand, 26 stores (Mayors Brand) across Florida and Georgia and 1 store under the Rolex brand name. Birks was founded in 1879 and developed over the years into Canada’s premier retailer, designer and manufacturer of fine jewelry, timepieces, sterling and plated silverware and gifts. Mayors was founded in 1910 and has maintained the intimacy of a family-owned boutique while becoming renowned for its fine jewelry, timepieces, giftware and service. Additional information can be found on Birks & Mayors web site, www.birksandmayors.com.

Forward Looking Statements

This press release contains certain “forward-looking” statements concerning the Company’s performance and strategies, including the ability to increase sales and gross profits, including by continuing to build on its sales momentum, control expenses, manage the level and productivity of its inventory, and limit capital expenditures while focusing on providing superior customer service and maintaining strong client relationships. Because such statements include various risks and uncertainties, actual results might differ materially from those projected in the forward-looking statements and no assurance can be given that the Company will meet the results projected in the forward-looking statements. These risks and uncertainties include, but are not limited to the following: (i) economic, political and market conditions, including the economies of the U.S. and Canada, which could adversely affect our business, operating results or financial condition, including our revenue and profitability, through the impact of changes in the real estate markets (especially in the state of Florida), changes in the equity markets and decreases in consumer confidence and the related changes in consumer spending patterns, the impact on store traffic, tourism and sales; (ii) the impact of fluctuations in foreign exchange rates, increases in commodity prices and borrowing costs and their related impact on the Company’s costs and expenses; and (iii) the Company’s ability to maintain and obtain sufficient sources of liquidity to fund its operations, to achieve planned sales, gross margin and net income, to keep costs low, to implement its business strategy, maintain relationships with its primary vendors, to mitigate fluctuations in the availability and prices of the Company’s merchandise, to compete with other jewelers, to succeed in its marketing initiatives, and to have a successful customer service program. Information concerning factors that could cause actual results to differ materially are set forth in the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on July 12, 2010 and subsequent filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.

BIRKS & MAYORS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands, except per share amounts)
		Fiscal Year Ended March 26, 2011				Fiscal Year Ended March 27, 2010
Net sales	$	270,948			$	255,057
Cost of sales		154,853				150,606
Gross profit		116,095				104,451
Selling, general and administrative expenses		107,231				106,252
Impairment of long-lived assets		-				1,353
Depreciation and amortization		5,267				5,192
Total operating expenses		112,498				112,797
Operating income (loss)		3,597				(8,346	)
Interest and other financing costs		11,319				11,127
Loss before income taxes		(7,722	)			(19,473	)
Income tax expense (benefit)		24				(2	)
Net loss	$	(7,746	)		$	(19,471	)
Weighted average shares outstanding:
Basic		11,390				11,390
Diluted		11,390				11,390
Net loss per share:
Basic	$	(0.68	)		$	(1.71	)
Diluted	$	(0.68	)		$	(1.71	)

BIRKS & MAYORS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET – UNAUDITED
(In thousands)
			March 26, 2011				March 27, 2010
Assets
Current assets:
Cash and cash equivalents		$	3,342			$	3,403
Accounts receivable			8,120				9,497
Inventories			141,843				143,817
Assets held for sale			-				924
Prepaids and other current assets			2,409				2,297
Total current assets			155,714				159,938
Property and equipment			26,270				28,014
Intangible assets			1,011				1,072
Other assets			1,328				2,710
Total non-current assets			28,609				31,796
Total assets		$	184,323			$	191,734
Liabilities and Stockholders’ Equity
Current liabilities:
Bank indebtedness		$	61,928			$	64,520
Accounts payable			48,262				43,530
Accrued liabilities			9,092				7,806
Current portion of long-term debt			4,339				4,852
Total current liabilities			123,621				120,708
Long-term debt			45,976				48,872
Other long-term liabilities			3,386				3,767
Total long-term liabilities			49,362				52,639
Stockholders’ equity:
Common stock			60,895				60,895
Additional paid-in capital			15,752				15,728
Accumulated deficit			(71,586	)			(63,840	)
Accumulated other comprehensive income			6,279				5,604
Total stockholders’ equity			11,340				18,387
Total liabilities and stockholders’ equity		$	184,323			$	191,734

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