Birks & Mayors Inc. said that same-store sales fell by 7 percent for the 2007 holiday season. U.S. same-store sales dropped 10 percent and Canadian stores fell by 5 percent for the period (Nov. 7 – Dec. 4).
The company, which owns 71 luxury jewelry stores in the U.S. and Canada, reported a net sales increased 5.7 percent to $96.8 million for the period, primarily driven by the opening of two new stores in the U.S., the addition of two stores in Canada associated with the Brinkhaus acquisition, and the translation of Canadian sales at higher rates.
“We were disappointed with our holiday sales results, said Thomas A. Andruskevich,” Birks & Mayors president and chief executive officer. “While net sales increased during our fiscal 2008 holiday season, comparable store sales were below our expectations driven by declines in store traffic patterns that worsened as the holiday season progressed. We continue to operate in a challenging economic environment and will continue to operate the business in a manner consistent with these conditions.”
The company said that in light of these holiday sales results and its outlook for the fourth quarter of fiscal 2008, it is lowering its full year guidance for sales and earnings before taxes—expecting net sales to increase in the mid single digit range and anticipates achieving profitability for the fiscal 2008 year. However, earnings before income taxes are expected to be significantly below the prior fiscal year.
About Birks & Mayors Inc. operates 38 Birks stores in Canada, 31 Mayors stores in Florida and Georgia, and two retail locations in Calgary and Vancouver under the Brinkhaus brand.
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