Mayors Jewelers (MYR) 8-K Financial statements and exhibits

Exhibit 99.1

MAYOR’S JEWELERS, INC.
REPORTS THIRD QUARTER AND 39-WEEK RESULTS
Company Reports 41% Increase in Net Income and a 14% Increase in Comparable Store Sales
for the Third Fiscal Quarter; Birks Requests Dividend Payment

     SUNRISE, FL. February 3, 2004 /BUSINESS WIRE/ — Mayor’s Jewelers, Inc. (AMEX:MYR), which operates 28 luxury jewelry stores in Florida and Georgia, reported results for the third fiscal quarter and the 39-week period ended December 27, 2003.

Net sales for its 28 stores in operation were $50.3 million for the thirteen weeks ended December 27, 2003 compared to the thirteen weeks in the prior year third quarter ended January 4, 2003, when net sales amounted to $43.6 million, during which time the Company operated an average of 30 stores. Net sales for the 39-week period ended December 27, 2003, were $98.7 million as compared to the prior year 40-week period ended January 4, 2003, of $98.4 million when the Company operated between 29 and 40 stores. The reduction in the number of stores was a result of a restructuring plan during the last fiscal year that included closing under-performing stores outside of the Company’s core markets of Florida and Georgia.

Comparable store sales, sales for stores open in both thirteen and similar thirty-nine week periods, increased 14% and 12%, respectively. As previously released, comparable store sales for the holiday season (November 2, 2003 to December 27, 2003) increased 15% compared to the previous year’s similar period.

Gross profit increased 21% from the prior year third fiscal quarter to $21.2 million, or 42.2% of sales for the thirteen week period ended December 27, 2003, compared to $17.6 million or 40.4% of sales for the thirteen week period ended January 4, 2003. Gross profit for the 39-week period ended December 27, 2003, was $40.7 million or 41.2% of sales, compared to $34.1 million or 34.6% of sales during the 40-week period of the prior year.

The increases in net sales and gross profit in the third fiscal quarter were the result of an effective combination of merchandising and marketing initiatives. The gross margin (gross profit as a percentage of sales) increase in the third fiscal quarter was a result of Mayors’ ability to increase its offering and sales of higher margin exclusive products and substantially reduced promotional activity as compared to last year. For the 39-week period ended December 27, 2003, versus the 40-week period ended January 4, 2003, the gross margin increased due to the factors previously mentioned for the current third fiscal quarter as well as the negative impact on the prior year gross margin that discounting merchandise had in connection with the liquidation of inventory in the closing of stores.

Net income was $4.0 million, or $0.04 per share, for the current third fiscal quarter and represented a 41% increase from the prior year third fiscal quarter of $2.9 million, or $0.03 per share. The net loss for the current 39-week period decreased 80% to ($4.2) million, or ($0.23) per share, compared to ($20.6) million, or ($1.08) per share, for the 40-week period ended January 4, 2003. Net income increased in the current third fiscal quarter due to the increase in sales and gross profit, as previously noted, offset by the increase in marketing and variable expenses due to the sales increase. Net loss decreased in the 39-week period ended December 27, 2003, due to the increase in gross profit and significant decreases in operating and depreciation expenses, and interest and financial costs as compared to the prior year 40-week period ended January 4, 2003. This reduction in expenses resulted from a smaller scale of operations because of closed stores, management’s continuing ability to reduce controllable expenses, the non-recurrence of

certain unusual costs incurred in the prior year and one fewer week of operations during the first three quarters of fiscal 2003.

Commenting on the results, Thomas A. Andruskevich, Chairman, President and Chief Executive Officer, said, “We are very pleased that during the third fiscal quarter, Mayor’s continued to generate strong increases in comparable store sales and gross profit that it recorded in the first and second quarters. More importantly, our new merchandising and marketing initiatives were able to capitalize on the increase in consumer spending this holiday season. These results demonstrate that our branding and merchandising strategies are achieving good results.”

Henry Birks & Sons Inc. (“Birks”), the controlling stockholder of Mayor’s, has asked Mayor’s to consider paying in the coming month, the cumulative dividends already earned by Birks of approximately $2 million. These dividends are on the Mayors’ convertible preferred stock issued to Birks as part of its investment in 2002 and were originally anticipated to be paid in January 2005. Mayor’s has been asked by Birks to consider the payment of these dividends in order to assist Birks in the renewal of its current bank facility, which is due for renewal in July 2004, and for other general financing needs. Mayor’s has formed a committee of independent directors of its Board to evaluate Birks’ request. Mayor’s has various relationships with Birks and the two companies have the same controlling shareholder group. Birks has informed Mayor’s that it is currently in the process of developing the final terms for its bank facility and the controlling shareholder group has informed Mayor’s that it is highly confident that Birks will satisfactorily conclude them in the near future.

Mayor’s is a leading luxury retail jeweler serving Florida and Greater Atlanta. Mayor’s was founded in 1910 and has maintained the intimacy of a family-owned boutique while becoming renowned for its fine jewelry, timepieces and giftware. Mayor’s currently operates 28 stores; 23 in Florida, 5 in Georgia. Additional information can be found on Mayor’s web site, www.mayors.com.

This press release contains certain “forward-looking” statements concerning expectations for sales, margins, earnings (loss), financing needs or plans, and predictions of future events. Actual results might differ materially from those projected in the forward-looking statements. Information concerning factors that could cause actual results to differ materially are set forth in Mayor’s 2002 Annual Report and in Form 10-K, 10-Q and 8-K Reports filed with the Securities and Exchange Commission. Mayor’s undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

CONTACT: Mayor’s Jewelers, Inc., Sunrise, Florida John Ball, 954/846-2853
Investor Relations e-mail: jball@mayors.com

##

MAYOR’S JEWELERS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS — UNAUDITED
(Amounts shown in thousands except share and per share data)

		Thirteen			Thirteen
		Weeks Ended			Weeks Ended
		December 27, 2003			January 4, 2003
Net sales		$	50,318		$	43,610
Cost of sales			29,070			26,011
Gross profit			21,248			17,599
Selling, general and administrative expenses			15,234			13,935
Other charges			—			(1,057	)
Depreciation and amortization			813			943
			16,047			13,821
Operating income			5,201			3,778
Interest and other income			2			—
Interest and other financial costs			(1,183	)		(934	)
Net income before income taxes			4,020			2,844
Income taxes			—			(54	)
Income from continuing operations			4,020			2,898
Loss from discontinued operations			—			(43	)
Net income			4,020			2,855
Preferred stock cumulative dividend			(357	)		(357	)
Net income attributable to common stockholders		$	3,663		$	2,498
Weighted average shares outstanding
	Basic		29,333,616			19,571,548
	Diluted		85,925,547			82,469,489
Income per share, basic:
Continuing operations		$	0.12		$	0.13
Discontinued operations			—			—
		$	0.12		$	0.13
Income per share, diluted:
Continuing operations		$	0.04		$	0.03
Discontinued operations			—			—
		$	0.04		$	0.03

MAYOR’S JEWELERS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS — UNAUDITED
(Amounts shown in thousands except share and per share data)

	Thirty-Nine			Forty
	Weeks Ended			Weeks Ended
	December 27, 2003			January 4, 2003
Net sales	$	98,657		$	98,430
Cost of sales		58,003			64,375
Gross profit		40,654			34,055
Selling, general and administrative expenses		38,907			43,833
Other charges		—			1,765
Depreciation and amortization		2,525			3,739
		41,432			49,337
Operating loss		(778	)		(15,282	)
Interest and other income		65			1,276
Interest and other financial costs		(3,456	)		(5,872	)
Net loss before income taxes		(4,169	)		(19,878	)
Income taxes		—			416
Loss from continuing operations		(4,169	)		(20,294	)
Loss from discontinued operations		—			(292	)
Net loss		(4,169	)		(20,586	)
Preferred stock cumulative dividend		(1,072	)		(476	)
Net loss attributable to common stockholders	$	(5,241	)	$	(21,062	)
Weighted average shares outstanding, basic and diluted		22,850,079			19,555,914
Loss per share, basic and diluted:
Continuing operations	$	(0.23	)	$	(1.06	)
Discontinued operations		—			(0.02	)
	$	(0.23	)	$	(1.08	)

MAYOR’S JEWELERS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS — UNAUDITED
(Amounts shown in thousands except share and per share data)

					December 27,			March 29,
					2003			2003
				ASSETS
Current Assets:
Cash and cash equivalents					$	3,872		$	1,058
Accounts receivable (net of allowance for doubtful accounts of $1,179 and $1,263, respectively)						8,985			5,777
Inventories						83,143			76,753
Other current assets						1,481			2,987
		Total current assets				97,481			86,575
Property, net						14,154			15,872
Other assets						739			736
		Total non-current assets				14,893			16,608
		Total assets			$	112,374		$	103,183
				LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable					$	21,716		$	13,798
Accrued expenses						10,649			7,434
Liabilities of discontinued operations						—			527
Credit facility						28,204			23,283
			Total current liabilities			60,569			45,042
Term Loan						10,668			12,668
Other long term liabilities						2,879			3,046
			Total long term liabilities			13,547			15,714
Stockholders’ Equity:
Series A convertible preferred stock, $.001 par value, 15,050 shares authorized, issued and outstanding; liquidation value of $15,050,000						—			—
Common stock, $.0001 par value, 50,000,000 shares authorized, 46,945,261 and 29,592,264 shares issued, respectively						5			3
Additional paid-in capital						208,100			208,102
Accumulated deficit						(140,447	)		(136,278	)
Less: 9,983,954 shares of treasury stock, at cost						(29,400	)		(29,400	)
	Total stockholders’ equity					38,258			42,427
Total liabilities and stockholders’ equity					$	112,374		$	103,183

Certain reclassifications were made to the prior period’s condensed consolidated balance sheet.