Birks & Mayors Inc. (the “Company” or “Birks & Mayors”) (NYSE MKT LLC:BMJ), which operates 57 luxury jewelry stores across Canada, Florida and Georgia, reported financial results for the fiscal year ended March 31, 2012 (“fiscal 2012”). The Company noted that fiscal 2012 represented a 53-week period compared to a 52-week period ended March 26, 2011, (“fiscal 2011”).
Fiscal 2012 financial results showed a marked improvement over the prior year:
- Net sales increased 11.6%, or $31.4 million to $302.3 million;
- Comparable store sales increased by 5% for the full fiscal year;
- Gross profit margin improved by 114 basis points over the prior year; and
- The net income for the fiscal year improved by $8.0 million, or $0.70 per share, to net income of $0.2 million, or $0.02 per share, from a net loss of $7.7 million, or $0.68 per share, in the prior fiscal year. Excluding $2.1 million of post-employment benefit charges associated with the departure of the Company’s former Chief Executive Officer at the end of fiscal 2012, net income was $2.3 million or $0.21 per share.
The $31.4 million increase in net sales was primarily driven by a 5% increase in comparable store sales, $7.6 million of higher sales from a new store offset by $4.6 million of lower sales associated with the closure of six stores, $8.1 million increase in revenues related to the Company’s refining operations, $4.4 million of higher sales related to the extra week in fiscal 2012, $0.6 million increase in corporate sales and $3.1 million of higher sales related to translating the sales of our Canadian operations into U.S. dollars due to the stronger Canadian dollar. The comparable store sales increase of 5% reflects a 6% increase in comparable store sales in the U.S. and a 4% increase in comparable store sales in Canada. The increase in comparable store sales in both countries during fiscal 2012 was primarily related to an increase in the average sale transaction as demand for luxury retail products continued to improve in both the U.S. and Canada.