Thursday 8th February 2018
|Text too small?|
Michael Hill International expects first-half earnings will more than halve with A$20 million coming from the jewellery chain's exit from the US and scaling back its Emma & Roe branded store footprint.
The Brisbane-based company said earnings before interest and tax was about A$20 million in the six months ended Dec. 31, down from A$40 million a year earlier. Of that, about A$8.4 million arises from onerous lease provisions and another A$11.4 million from impairment charges on property, plant and equipment, it said in a statement.
"Despite the one-off accounting impacts from store closures, the decisive actions taken to reduce the Emma & Roe store footprint and exit the US are critical to strengthening the foundations of Michael Hill International as we focus on building significant long-term value in our core business across Australia, New Zealand and Canada," chief executive Phil Taylor said.
Last month the jewellery chain announced plans to quit its decade-long investment in the US and overhaul its Emma & Roe brand into demi-fine products with a smaller physical store footprint. At the time of the announcement, the company said it expected to write down the Emma & Roe assets by A$7 million, but wasn't sure of the financial impact from the US exit.
Michael Hill is still negotiating with landlords over the Emma & Roe stores and US exit and hasn't determined the final timing of cash cost of the closures, it said.
The dual-listed shares fell 2.1 percent to A$1.18 on the ASX.
No comments yet
NZ dollar falls with Aussie after Westpac's RBA rate cut call
Intuit juggernaut grows QuickBooks subscribers but momentum slows
Reaction to Budget rules relaxation shows balance 'about right', says Ardern
Augusta lifts net profit six fold as investors flock into new funds
Annual exports to China top $15 billion for first time
Gentrack posts $8.7M loss on CA Plus write-down
Westpac says RBNZ capital proposals would add $6,000 p.a. to an Auckland mortgage
Cavalier says market conditions still challenging
Ryman hikes dividend as annual earnings grow on wider development margin
24th May 2019 Morning Report