Michael Hill first-quarter sales rise
Sales rose to $A112.5 million in the three months ended September 30.
Michael Hill International's [NZX: MHI] first-quarter sales rose 9.9%, driven by a combination of new store openings and increased revenue from existing stores.
Sales rose to $A112.5 million in the three months ended September 30, from $A100.9 million a year earlier, the company says. Same-store sales gained 6% to $A107 million.
The retailer reported weaker earnings in Australia, its largest market, in the year ended June 30, and cut its dividend for the first time in six years, yet it flagged plans to open eight more stores across the Tasman by 2018.
Gross margins have been under pressure from a strong US dollar but the company says it has taken "appropriate action" and margin "should be steady" in the latest three months compared to a year earlier, without giving details.
"The Australian market has steadied from previous reporting periods" and achieved 2.9 % growth on a same-store basis to $A65.3 million.
New Zealand same-store sales rose 8.6% to $23.6 million in local currency terms and Canadian stores rose 6.2% on that basis to $C15.7 million. US sales from stores open at least 12 months rose 1.2% to $US2.1 million.
Michael Hill also separately disclosed revenue for its Emma & Roe chain selling charm bracelets and accessories, which is in the second year of a trial. That business doubled sales to $ A1.57 million, an uplift of 45% on a same-store basis.
It opened one new Emma & Roe store in the quarter, bringing the total to nine. and plans to open two more.
"This will take the brand to critical mass in the southeast Queensland market and give us the best indication of its commercial viability," the company says.
Michael Hill shares last traded at $1.04 and have dropped 20% in the past 12 months. It is rated a 'buy' based on three recommendations compiled by Reuters.
(BusinessDesk)
Jonathan Underhill
Thu, 08 Oct 2015
Thu, 08 Oct 2015
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Michael Hill first-quarter sales rise
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