Mayor’s Jewelers, Inc., reports that second quarter net sales grew 6.9% to $25.5 million compared to $23.8 million during the same 13-week period in 2003.
This increase in net sales was achieved despite the closure of stores due to hurricanes Charley, Frances, and Jeanne, which amounted to an equivalent of six business days per store, for approximately 24 stores (Sunrise, Fla.-based Mayor’s operates 28 luxury jewelry stores in Florida and Georgia). These store closures occurred primarily on weekends, including the Labor Day holiday weekend, the company said in a statement.
Comparable store sales increased 5.3% from last year’s second quarter, ended Sept. 25. Comparable store sales adjusted for the days stores were closed due to the hurricanes increased by 11.5% for the second fiscal quarter as compared to last year.
The sales gains allowed Mayor’s to narrow its net losses for the quarter by 47.4% to $2.3 million, compared with $4.4 million for the same period last year.
Net sales for the first half of the year ended Sept. 25, were $54.6 million compared to $48.3 million for the same period in 2003, a 13% increase. Comparable store sales for the same period increased 12% from last year and, when adjusted for the days stores were closed due to the hurricanes, increased by 15.1%.
Gross profit and gross margin (gross profit as a percentage of sales) for the second fiscal quarter were $10.7 million and 41.9%, respectively, compared to $9.5 million and 39.9%, respectively, during the prior year’s second fiscal quarter.
Gross profit and gross margin were $22.8 million and 41.8%, respectively, for the first-half of the fiscal year, compared to $19.4 million and 40.1% for the same period in 2003.
Net losses for the first half of the year were $4.6 million, compared to a net loss of $8.2 million, for the first-half of 2003, a 43.5% improvement in results.
“We are very pleased with the Company’s performance for the second fiscal quarter, especially in light of the business disruptions caused by three hurricanes,” said Thomas A. Andruskevich, chairman, CEO and president of Mayor’s. “The hurricane season is now drawing to a close and therefore, we are hopeful that we will not have any further aberrations in our results that are outside of our control for the remainder of the fiscal year. Mayor’s momentum continues to build and, with the strong merchandising and marketing programs the company now has in place, we are cautiously optimistic about the prospects for future growth and profitability.”