Townsville Bulletin

Michael Hill sales surge

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Townsville MICHAEL Hill Internatio­nal reported a 6 per cent gain in full- year sales, reflecting a net increase in new stores.

Canada was the jewellery retailer’s standout market in the latest year. Sales rose to $ 583 million in the 12 months ended June 30 from $ 549.9 million a year earlier, the Brisbane- based retailer said in a statement.

Opening new stores provided the biggest impetus to sales growth and same- store sales rose a more modest 1.5 per cent.

The retailer opened 13 of its Emma & Roe stores bringing the total under that brand to 29 and opened 14 Michael Hill branded outlets while closing seven, leaving it with 304, and a total number of outlets of 333.

The increased Emma & Roe meant sales jumped 62 per cent to $ 15 million, although on a same- store basis, sales fell 1.9 per cent.

Michael Hill store sales rose 5 per cent to $ 568 million, or 1.5 per cent on a same- store basis.

The company didn’t release earnings figures yesterday.

“Gross margin will be slightly down for the year in part due to the tougher than expected Australasi­an market and in part due to discountin­g of surplus inventory being cleared to help fund our branded collection­s rollout,” it said.

“The seven Michael Hill stores closed during the year were all, except one, at the end of their lease terms and were no longer deemed to be commercial­ly viable under our strict investment guidelines.”

In Canada, sales rose 19 per cent to $ C113 million ($ 119m), or 8.8 per cent on a samestore basis.

“Michael Hill is now the second- largest jewellery retail chain in the Canadian market and continues to take market share from the competitio­n,” it said.

“Nine stores were opened during the period giving a total of 76 at the end of June.”

US sales fell 13 per cent to $ US12.4 million, or 13 per cent on a same- store basis.

Its Easton Centre store in Columbus, Ohio, was closed in June because of sustained poor performanc­e with exit costs of $ US650,000 and its US business “continued to struggle throughout the year”, it said.

New Zealand sales declined 0.7 per cent to $ 122 million, and fell 0.8 per cent on a same- store basis, while in its biggest market of Australia, sales rose 4.1 per cent to $ 322 million, and on a same- store basis sales were up 1.2 per cent.

It opened three new stores in Australia and closed five underperfo­rming outlets, for a total of 166.

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 ?? SATISFIED CUSTOMER: Michael Hills’ Arezoo Darani with Maddison Barbour. Picture: TARA CROSER ??
SATISFIED CUSTOMER: Michael Hills’ Arezoo Darani with Maddison Barbour. Picture: TARA CROSER
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