Birks & Mayors Inc., which operates 67 luxury jewelry stores across Canada, Florida and Georgia, reported a net sales increase of 4.3 percent to $114.7 million for the third quarter. Comparable store sales increased 3 percent for the period, ended Dec. 30, 2006, as compared to a 14 percent increase in the same period of the prior year.
The Montreal, Canada-based company said net income increased 24.6 percent in the third quarter to $19.6 million, compared to the same period of the prior year.
The company also reported that its gross margin rose 130 basis points to 50.2 percent of net sales. Operating income increased 21.6 percent to $22.3 million.
“Our record third quarter results can be attributed to our ongoing ability to provide clients with distinctive and desirable high-quality jewelry and timepieces,” said Thomas A. Andruskevich, Birks & Mayors president and chief executive officer. “We were delighted by the performance of our Canadian stores during the third quarter season with comparable store sales increasing 8 percent. In the U.S., we mitigated the negative traffic trend in Florida through successfully executing our marketing, retail, and merchandising initiatives focused on personalized client service and the continued emphasis on product assortments at higher price points.”
New sales for the first nine months of the fiscal year increased 8.9 percent to $237.8 million, the company reported. Net income increased 30.7 percent to $15.0 million.
Comparable store sales for the nine-month period, ended Dec. 30, 2006, increased 4 percent, compared with an 11 percent increase for the same period of the prior year, the company said. Gross margin expanded by 120 basis points to 49.1% of net sales. Operating income increased 24.3 percent to $22.7 million, or 9.6 percent of net sales.