Michael Hill annual sales rise 3.4% as declines in Australia outweighed by gains in other markets

Friday 17th July 2015

Michael Hill International, the listed jewellery retailer, increased full year sales 3.4 percent as a decline in its biggest market of Australia was outweighed by gains in New Zealand, Canada and the US.

Sales rose to A$495.6 million in the 12 months ended June 30, from A$479.3 million a year earlier, the Brisbane based company said in a statement. The sales figures don't include its new Emma & Roe stores.

Michael Hill has previously warned weakness in Australia is likely to weigh on full year earnings, scheduled for release on Aug. 14., Australia's economic growth has slowed as prices for the country's commodity exports, such as iron ore, have dropped, weighing on consumer confidence. Australian sales, which account for 59 percent of total sales, dropped 1.4 percent over the year, and by 2.5 percent on a same store basis, which excludes changes in store numbers, the company said today.

The company didn't provide a forecast for its full year earnings. First half profit rose 46 percent to A$23.7 million.

It opened 12 Michael Hill stores during the year, and closed two, taking the total to 288 stores, and added two Emma & Rose stores during the year, taking the total to eight.

In the full year, New Zealand sales rose 6.7 percent to A$106.2 million, or 7.2 percent on a same store basis.

In Canada, sales jumped 15 percent to A$81.3 million, or 3.1 percent on a same store basis. In the US, sales increased 25 percent to A$13.6 million, or by 14 percent on a same store basis.

Shares in Michael Hill last traded at $1 and have declined 15 percent so far this year.

BusinessDesk.co.nz

Comments from our readers

No comments yet