Birks & Mayors Reports Mid-Year Results

Birks & Mayors Inc. (the "Company” or "Birks & Mayors”) (NYSE AMEX:BMJ), which operates 64 luxury jewelry stores across Canada, Florida and Georgia, reported results for the twenty-six week period ended September 25, 2010.

For the 26 Weeks Ended September 25, 2010 compared to the 26 Weeks Ended September 26, 2009

• Net sales increased 8.8% to $111.2 million from $102.2 million in the prior-year period;
• Comparable store sales were up 5% as compared to the prior-year period; and
• A net loss of $9.5 million, or $0.84 per share, was recognized for the period compared to a net loss of $12.9 million, or $1.13 per share, in the prior-year period.

Six-Month Fiscal 2011 Results

Net sales for the 26-week period ended September 25, 2010 increased 8.8% to $111.2 million from $102.2 million for the 26-week period ended September 26, 2009. The increase in reported net sales for the current 26-week period is primarily attributable to comparable store sales growth of 5% and $5.8 million of higher sales associated with foreign currency translation of the Company’s Canadian operations into U.S. dollars due to the stronger Canadian dollar. The comparable store sales increase of 5% reflects a 6% comparable store sales increase in Canada and a 2% increase in the U.S. The increase in comparable store sales in both Canada and the U.S. is primarily attributable to an increase in store traffic in both the Company’s Canadian and U.S. markets and an increase in the average sale transaction in the U.S.

Gross profit was $47.5 million, or 42.7% of net sales in the first six months of fiscal 2011, as compared to $43.5 million, or 42.5% of net sales, in the prior year period. The 20 basis point increase was primarily attributable to a reduction in promotional pricing pressures in the U.S.

Selling, general and administrative expenses ("SG&A”) for the period was $48.6 million, or 43.7% of net sales, as compared to $48.1 million, or 47.1% of net sales, in the prior-year period. The $0.5 million increase in SG&A was primarily attributable to $2.3 million of higher expenses related to foreign currency translation resulting from the translation of Canadian expenses into U.S. dollars with a relatively stronger Canadian dollar, net of $1.8 million of lower operating expenses.

Inventory totaled $140.8 million at September 25, 2010, as compared to $158.6 million at September 26, 2009, a decrease of $17.8 million or 11.2%. Excluding the impact of $4.0 million of foreign currency translation, the Company’s inventory is lower than last fiscal year by $21.8 million, due primarily to lower retail inventory as comparable store inventory decreased by 10.4% as well as the impact of the Company’s closure of four store locations since September 26, 2009, partially offset by the opening of one new store.

Bank indebtedness decreased $13.8 million from September 26, 2009. Excluding the impact of $1.3 million of foreign currency translation, bank indebtedness is lower than the prior fiscal year by $15.1 million. The decrease in bank indebtedness is primarily associated with the reduction in inventory.

Tom Andruskevich, President and Chief Executive Officer of Birks & Mayors, commented: "During the first half of the fiscal year we experienced modest improvements in our performance as the economies of both Canada and, to a lesser extent, the U.S. began to improve. We are encouraged by the continued improvement in sales and gross margin performance so far this year and will continue to focus on generating increases in sales and gross profits throughout the all important holiday season. In addition, we will continue to diligently control expenses, manage the level and productivity of our inventory and limit capital expenditures while continuing to focus on providing superior customer service and maintaining strong client relationships.”

Conference Call Information

A conference call to discuss the results of the 26-week period ended September 25, 2010, is scheduled for today, November 18, 2010 at 4:45 p.m. Eastern Time. Investors and analysts in the U.S. and Canada interested in participating in the call are invited to dial 1-888-661-5127 approximately ten minutes prior to the start of the call. All other international callers please dial 1-913-312-1480 prior to the presentation. The conference call will also be web-cast live at www.birksandmayors.com. A replay of this call will be available until Midnight Eastern Time on November 25, 2010 and can be accessed by dialing 1-877-870-5176 and entering conference PIN number 1485381.

Birks & Mayors is a leading operator of luxury jewelry stores in the United States and Canada. As of October 31, 2010, we operated 33 stores under the Birks brand in most major metropolitan markets of Canada, 29 stores under the Mayors brand in Florida and Georgia, two retail locations in Calgary and Vancouver under the Brinkhaus brand, as well as three temporary retail locations in Florida and Tennessee under the Jan Bell brand. Birks was founded in 1879 and developed over the years into Canada’s premier retailer, designer and manufacturer of fine jewelry, timepieces, sterling and plated silverware and gifts. Mayors was founded in 1910 and has maintained the intimacy of a family-owned boutique while becoming renowned for its fine jewelry, timepieces, giftware and service. Additional information can be found on Birks & Mayors web site, www.birksandmayors.com.

Forward Looking Statements

This press release contains certain "forward-looking” statements concerning the Company’s performance and strategies, including the ability to increase sales and gross profits, control expenses, manage the level and productivity of its inventory, and limit capital expenditures while focusing on providing superior customer service and maintaining strong client relationships. Because such statements include various risks and uncertainties, actual results might differ materially from those projected in the forward-looking statements and no assurance can be given that the Company will meet the results projected in the forward-looking statements. These risks and uncertainties include, but are not limited to the following: (i) economic, political and market conditions, including the economies of the U.S. and Canada, which could adversely affect our business, operating results or financial condition, including our revenue and profitability, through the impact of changes in the real estate markets (especially in the state of Florida), changes in the equity markets and decreases in consumer confidence and the related changes in consumer spending patterns, the impact on store traffic, tourism and sales; (ii) the impact of fluctuations in foreign exchange rates, increases in commodity prices and borrowing costs and their related impact on the Company’s costs and expenses; and (iii) the Company’s ability to maintain and obtain sufficient sources of liquidity to fund its operations, to achieve planned sales, gross margin and net income, to keep costs low, to implement its business strategy, maintain relationships with its primary vendors, to mitigate fluctuations in the availability and prices of the Company’s merchandise, to compete with other jewelers, to succeed in its marketing initiatives, and to have a successful customer service program. Information concerning factors that could cause actual results to differ materially are set forth in the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on July 12, 2010 and subsequent filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.