MICHAEL HILL SPARKLES AS EXPANSION PAYS OFF
MICHAEL Hill International, the jewellery retailer founded by its namesake, boosted annual profit by two-thirds as its Michael Hill chain grew steadily in its main markets of Australia and New Zealand and recorded stronger growth in Canada.
Profit rose to $32.6 million in the year ended June 30, from $19.6 million a year earlier, the Brisbane-based company said on Monday. Revenue increased 5.8 per cent to $583 million. When store changes were excluded, same-store sales lifted a more modest 1.6 per cent.
The jewellery retailer opened 26 stores during the year, of which 13 were Michael Hill and 13 Emma & Roe stores, and it closed seven, taking the total in the group to 332. The company said the past year was solid.
The company’s Michael Hill stores in Australia lifted earnings before interest and tax by 3.4 per cent to $52.4 million as revenue advanced 4 per cent to $322 million. In New Zealand, it closed one store and opened another, leaving total store numbers unchanged at 52. EBIT lifted 2.6 per cent to $NZ28 million ($25.8 million) even as sales edged down 0.8 per cent to $NZ122 million.
However Michael Hill’s US business deteriorated during the year, posting a wider EBIT loss of $US3.8 million ($4.8 million) from $US2.6 million a year earlier, as revenue fell 12 per cent to $US12.5 million.
Shares closed up 1¢ at $1.25.