Support our sponsors:

NZX 50 Index	4611.96	2.40
S&P/ASX 200	5191.20	0.00
Dow Jones Industrials	14839.80	21.00

Twitter

Facebook

RSS

Michael Hill lifts first-quarter revenue 14% on rising North American sales

Friday 5th October 2012

Text too small?

Michael Hill International, the listed jewellery chain, lifted first-quarter revenue rose 14 percent in New Zealand dollar terms, boosted by an improvement in its North American and Australian markets.

Total sales climbed to $116.4 million in the three months ended Sept. 30, from $101.8 million a year earlier, the Brisbane-based company said in a statement. Same-store sales rose 8.5 percent to $108 million.

Total Canadian sales jumped 29 percent to $12.3 million, followed by Australia up 14 percent to $78.9 million.

"All markets traded well over the first quarter and it was pleasing to see our largest market Australia lift its performance after a slow down during 2011-12," chairman, Michael Hill said. "The sales growth shown during the quarter was achieved without the need to reduce margins."

In August, the company posted a 5.8 percent increase in annual profit to $36.5 million as recovering sales in New Zealand, Canada and the US made up for shrinking revenue in Australia, which is the current financial year's focus.

US sales rose 10.6 percent to $2.5 million in the latest period, while New Zealand sales increased 8 percent to $22.7 million.

Sales for the company's professional care plan, which offers maintenance and repairs on jewellery, rose 20 percent to $6.5 million.

"The directors are satisfied with the performance over the first quarter however the key December quarter is now upon us and this will to a large extent determine the group's result for the year," Hill said.

The company shares fell 1.7 percent to $1.13 yesterday and have gained 32 percent this year. The stock is rated an average 'outperform' based on the consensus of two analyst recommendations compiled by Reuters.

BusinessDesk.co.nz

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.