Birks & Mayors profit and sales decline
by eyetee | November 22, 2012 2:14 pm
[1]Birks & Mayors says the closing of seven locations and lower store traffic have resulted in decreased net sales and profit for the first half of the year.
For the period ending Sept. 29, 2012, the luxury retailer reported a net sales decrease of 3.8 per cent to $124.9 million from $129.9 million in the prior-year period, although comparable store sales were up three per cent. Gross profit margin decreased by 120 basis points over the prior-year period.
“While our sales decline in the first half of the fiscal year was somewhat anticipated by the decrease in the number of retail stores, our business in Florida continues to be impacted by lower customer traffic in that state,” said Birks & Mayors president and chief executive officer (CEO) Jean-Christophe Bédos.
“However, we are experiencing stronger sales and traffic performance in the state of Georgia. We are optimistic about the favorable same-store sales growth in Canada experienced during the first half of the fiscal year and are confident the introduction of new Birks products and a stronger holiday season will help us experience sales increases in the second half of the year, thereby allowing us to achieve an improvement in our bottom line profitability for the year.”
Birks & Mayors operates 58 stores in Canada and the United States.
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