Jeweller backs plan to regain sparkle
JEWELLER Michael Hill has posted another slump in sales but it says a turnaround plan is gaining traction.
Same store sales across its Australian outlets were down 3.4 per cent in the three months to March 31 compared to the same period a year earlier, the Brisbane-based retailer reported yesterday.
Its Australian sales are now 7.4 per cent lower for the first nine months of the financial year compared to the same period a year earlier.
Michael Hill shares tumbled 8.2 per cent or 5.5¢ to 61.5¢ yesterday.
But CEO Daniel Bracken said a decision to focus on seasonal collections and stackable items had increased samestore sales in March.
“Historically, we have not lead our messaging with prodGOLD uct units, we have not run it like it is a fashion business,” Mr Bracken said.
“People have always tended to treat it as a destination, a place they go when they have business to do ... and not somewhere they can build a wardrobe of jewellery.”
Mr Bracken said the retailer’s performance was improving as it introduced new designs and moved away from constant discounting.
“We’re starting to see some of those green shoots come through now.”
The retailer’s same store sales across its total operations, which includes stores in Canada and New Zealand, fell 1.5 per cent for the quarter. That was an improvement on falls of 11 per cent and 2.9 per cent in the previous two quarters.
“The company’s performance continued to stabilise during the quarter,” Mr Bracken said.
In February, the company admitted its “dramatic” shift away from discounting had not been helpful, with total firsthalf revenue slipping 2.7 per cent to $315.4 million.
Mr Bracken, who came to Michael Hill via a stint as chief executive of Specialty Fashion, said the company remained committed to its $5 million annualised cost reduction program outlined in January.