Birks & Mayors reported that net sales decreased 13.9% for the 2009 fiscal year, to $270.9 million, as compared to $314.7 million the year before.
Comparable store sales were down 14%, compared to the year before.
The company reported a net loss of $61.0 million, for the year, compared to a profit of $10.4 million the year before.
The fourth quarter was particularly rough on the company, with net sales decreasing 23.3%, and comparable sales decreasing 16%.
Said a company statement: “The decrease in store traffic reflects the impact of the current challenging economic environment and an unprecedented decline in discretionary consumer spending in the luxury retail sector.”
Tom Andruskevich, president and chief Executive Officer of Birks & Mayors, said: “Our fiscal year performance was severely impacted by the economic downturn, banking crisis and significant drop in consumer confidence. As consumer confidence declined, we experienced declines in store traffic and average retail sales which resulted in lower sales. While we initiated significant cost reductions, we were not able to fully offset the significant declines in sales and margin during the holiday selling season, which negatively impacted the Company’s profitability. We continue to navigate the Company through very difficult economic times by carefully managing the level and productivity of our inventory, reducing our operating costs and limiting capital expenditures while continuing to focus our attention on providing our customers with superior service and selection while working with and supporting our key product brands and maintaining strong client relationships, all with the focus on optimizing cash flow.”