Shareholders unimpressed by Michael Hill sales slump

Michael Hill’s share price has fallen after the jeweller revealed its shift from discount-based pricing had led to a slump in sales. The company reported store sales down 11 per cent in the September quarter. After the announcement its share price dropped from 98 cents to 74c, the largest drop this year. Michael Hill International chief executive Phil Taylor attributed the fall to underestimating how much marketing activity was required to support the company’s plan to shift away from discount-based pricing. He said that although the transition had proven more challenging than expected, the company promised to drive performance up by December. Taylor will be replaced next month by Daniel Bracken.