Birks & Mayors Inc. (the “Company” or “Birks & Mayors”) (NYSE MKT LLC:BMJ), which operates 52 luxury jewelry stores across Canada, Florida and Georgia, reported financial results for the fiscal year ended March 30, 2013 (“fiscal 2013”). The Company noted that fiscal 2013 represented a 52-week period compared to a 53-week period ended March 31, 2012, (“fiscal 2012”).
Fiscal 2013 financial highlights:
- Comparable store sales increased by 4% as compared to the prior year;
- Operating efficiency improved as Selling General & Administrative (“SGA”) expenses as a percentage of net sales decreased by 130 basis points to 37.8% of net sales in fiscal 2013 compared to 39.1% of net sales in fiscal 2012; and
- Net income for fiscal year 2013 improved by approximately $1.3 million, or $0.09 per share, to net income of approximately $1.5 million, or $0.11 per share, from net income of approximately $0.2 million, or $0.02 per share, in fiscal 2012.
Net sales decreased by $9.6 million in fiscal 2013 compared to fiscal 2012, primarily driven by $7.3 million of lower sales associated with the closure of eleven underperforming retail store locations in fiscal 2013 and 2012, $4.4 million of lower sales related to the extra week in fiscal 2012, and $4.4 million of decreased revenues related to non-retail activities (corporate sales, refining activities and internet sales). These decreases were offset by comparable store sales growth of 4%, comprised of a 7% increase in Canada and a 2% increase in the U.S. The increases in comparable store sales in both regions were primarily related to an increase in our average sale transaction.
Gross profit for fiscal 2013 was $126.2 million, or 43.1% of net sales, as compared to $133.2 million, or 44.1% of net sales, in fiscal 2012. The 100 basis point decrease in gross profit margin was primarily attributable to a higher mix of sales of higher priced products which generally have a lower margin rate representing a larger percentage of the overall sales as well as a strategic decision to more aggressively reduce inventory of discontinued products and brands.