Mayors Jewelers (MYR) 8-K Results of Operations and Financial Condition

Exhibit 99.1

MAYOR’S JEWELERS, INC.
REPORTS THIRD FISCAL QUARTER AND 39-WEEK RESULTS
Company Reports 54% Increase in Net Income and a 14% Increase in
Comparable Store Sales for the Third Fiscal Quarter

     SUNRISE, FL-February 3, 2005 /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 25, 2004.

Net sales were $57.2 million for the 13 weeks ended December 25, 2004, compared to net sales of $50.3 million for the 13 weeks in the prior year third fiscal quarter ended December 27, 2003. Net sales for the 39-week period ended December 25, 2004, were $111.9 million as compared to net sales of $98.7 million for the prior year 39-week period ended December 27, 2003.

Comparable store sales, sales for stores open in both 13 and 39-week periods, increased 14% and 13%, respectively. Comparable store sales for the holiday season (October 31, 2004 to December 25, 2004) increased 13% compared to the previous year’s similar period.

Gross profit increased 17% from the prior year third fiscal quarter to $24.9 million, or 43.4% of sales for the 13-week period ended December 25, 2004, compared to $21.2 million or 42.2% of sales for the 13-week period ended December 27, 2003. Gross profit for the 39-week period ended December 25, 2004, was $47.6 million or 42.6% of sales, compared to $40.7 million or 41.2% of sales during the 39-week period of the prior year.

The increases in net sales and gross profit in the third fiscal quarter and 39-week period ended December 25, 2004 were primarily the result of a continued effective combination of merchandising and marketing initiatives, including the addition of two new signature designers, Esty and Michele della Valle, and their exclusive fall jewelry collections. For the third fiscal quarter the Company launched a new print, billboard, in-mall and television advertising campaign titled, “Be Spectacular,” which featured commercial spots during prime time network programs.

Net income was $6.2 million, or $0.07 per share on a fully diluted basis, for the third fiscal quarter which represented a 54% increase from the prior year third fiscal quarter net income of $4.1 million, or $0.04 per share on a fully diluted basis. The Company posted net income for the 39-week period ended December 25, 2004 of $1.5 million, or $0.02 per share on a fully diluted basis which represents a $6.4 million increase in bottom line results from a net loss of ($4.9) million, or ($0.26) per share on a fully diluted basis, for the 39-week period ended December 27, 2003.

Commenting on the results, Thomas A. Andruskevich, Chairman, President and Chief Executive Officer, said, “During the third fiscal quarter, Mayor’s again demonstrated the strength of its brand, exclusive merchandise lines and marketing initiatives, along with its commitment to customer service. These factors combined to generate strong increases in comparable store sales, a positive bottom line and opportunity for continued growth as we move forward. By understanding our clients and offering them the products they desire, we are realizing our vision to establish Mayor’s as the Southeast’s leading luxury jeweler.”

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 continued growth. Actual results might differ materially from those projected in the forward-looking statements based on risk factors such as the Company’s ability to attract and retain new designers and their exclusive jewelry lines, the success of the Company’s marketing initiatives, the Company’s ability to have a successful customer service program, the successful resolution of the informal investigation by the Securities and Exchange Commission previously disclosed by the Company, the successful completion of the proposed transaction between the Company and Henry Birks & Sons Inc., the Company’s controlling shareholder, the Company’s ability to attract and retain its key personnel and the Company’s ability to increase sales and keep costs low. Additional information concerning factors that could cause actual results to differ materially are set forth in Mayor’s 2003 Annual Report and in Form 10-K/A, 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
Marc Weinstein, 954/846-2701
Investor Relations e-mail:mweinstein@mayors.com

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

	Thirteen			Thirteen
	Weeks Ended			Weeks Ended
	December 25, 2004			December 27, 2003
Net sales	$	57,237		$	50,318
Cost of sales		32,378			29,070
Gross profit		24,859			21,248
Selling, general and administrative expenses		16,044			15,234
Non-cash compensation credit		(145	)		(45	)
Other charges, net		722			—
Depreciation and amortization		818			813
Total operating expenses		17,439			16,002
Operating income		7,420			5,246
Interest and other income		12			2
Interest and other financial costs		(1,189	)		(1,183	)
Net income		6,243			4,065
Preferred stock cumulative dividend		—			(357	)
Net income attributable to common stockholders	$	6,243		$	3,708
Weighted average shares outstanding:
Basic		36,961,307			29,333,616
Diluted		95,582,537			88,077,141
Income per share:
Basic	$	0.17		$	0.13
Diluted	$	0.07		$	0.04

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

	Thirty-nine			Thirty-nine
	Weeks Ended			Weeks Ended
	December 25, 2004			December 27, 2003
Net sales	$	111,859		$	98,657
Cost of sales		64,245			58,003
Gross profit		47,614			40,654
Selling, general and administrative expenses		40,337			38,872
Non-cash compensation (credit) expense		(42	)		730
Other charges, net		(68	)		—
Depreciation and amortization		2,492			2,525
Total operating expenses		42,719			42,127
Operating income (loss)		4,895			(1,473	)
Interest and other income		18			30
Interest and other financial costs		(3,368	)		(3,456	)
Net income (loss)		1,545			(4,899	)
Preferred stock cumulative dividend		—			(1,072	)
Net income (loss) attributable to common stockholders	$	1,545		$	(5,971	)
Weighted average shares outstanding:
Basic		36,961,307			22,850,079
Diluted		95,654,272			22,850,079
Income (loss) per share:
Basic	$	0.04		$	(0.26	)
Diluted	$	0.02		$	(0.26	)

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

	December 25,			March 27,
	2004			2004
ASSETS
Current Assets:
Cash and cash equivalents	$	7,187		$	1,448
Accounts receivable (net of allowance for doubtful accounts of $1,156 and $999, at December 25, 2004 and March 27, 2004, respectively)		7,513			6,446
Inventories		83,258			80,825
Other current assets		1,586			1,194
Total current assets		99,544			89,913
Property, net		13,778			14,634
Other assets		591			668
Total non-current assets		14,369			15,302
Total assets	$	113,913		$	105,215
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	22,267		$	13,833
Accrued expenses		9,591			9,457
Credit facility		31,913			33,005
Total current liabilities		63,771			56,295
Other long term liabilities		2,487			2,768
Term loan		12,668			12,668
Total long term liabilities		15,155			15,436
Stockholders’ Equity:
Series A-1 convertible preferred stock, $.001 par value, 15,050 shares authorized and issued at December 25, 2004 and March 27, 2004, liquidation value of $15,050,000		—			—
Common stock, $.0001 par value, 50,000,000 shares authorized, 46,945,261 issued at December 25, 2004 and March 27, 2004		5			5
Additional paid-in capital		206,939			206,981
Accumulated deficit		(142,557	)		(144,102	)
Less: 9,983,954 shares of treasury stock, at cost		(29,400	)		(29,400	)
Total stockholders’ equity		34,987			33,484
Total liabilities and stockholders’ equity	$	113,913		$	105,215