Mayors Sale Saves Birks from Loss

RAPAPORT Birks Group’s profit more than doubled in the past fiscal year after the Canadian retailer sold subsidiary Mayors Jewelers. Profit grew to $11.7 million for the 12 months ending March 31 from $4.9 million a year ago, the jeweler reported Tuesday The company offloaded Mayors to UK-based Aurum Holdings for $106.8 million in October, boosting its profit figure by $29.9 million Excluding that deal, Birks recorded a loss of $168 million “Our fiscal 2018 results are reflective of the major transformative changes undertaken by the company during the fiscal year, most notably the sale of Mayors, which enabled us to substantially reduce our debt and strengthen our balance sheet,” Birks CEO Jean-Christophe Bédos said Wednesday.

“This allowed us to better position the company for long-term growth and the creation of shareholder value.” Group revenue fell 2% to $114.4 million for the year, mainly due to weakening consumer demand, particularly during the holiday . Source