Solid end to 2013 for Michael Hill jewellers

Posted January 28, 2014 | By Jonathan Green

While Michael Hill International announced a steady rise in financial figures in the six months trading to 31 December, its New Zealand market continued to struggle.

The New Zealand Stock Exchange-listed jewellery chain has released preliminary sales results for the second half of 2013, indicating a solid 4.7 per cent rise to AU$24.8 million on the previous year for the same stores.

Furthermore, overall revenue for all stores increased 10 per cent to AU$270.9 million.

The company announced in early October 2013 that it would change its currency reporting to Australian dollars after consideration of International Financial Reporting Standard (IAS 21 and IAS 8) and given the relative importance of the Australian market to the company’s business operations.

This change in reporting helped, in part, to strengthen Michael Hill’s results as the Australian dollar weakened against the other currencies during that period.

While there was an increase in sales figures across Australia, Canada and the United States, the company did report another downturn in New Zealand sales.

Michael Hill declared that the “settling in of a new retail management team mid 2013” had affected results in New Zealand, and that they were confident of an increase in sales in the near future.

The full half-year results for the six months to 31 December 2013 are due for release to the NZX on 14 February 2014.

Region breakdown
Australian stores reported a modest rise of 1.4 per cent to AU$15.8 million on the same period last year.

Canada experienced strong growth of 7.9 per cent for the half year with sales rising to CAD$2.9 million (AU$3 m).

Sales in the United States were solid, with a 2.0 per cent rise to US$500,000 (AU$550,000) for the six months. It was noted that trade was adversely affected in the lead up to Christmas by severe winter conditions.

A decline in New Zealand of 4.1 per cent to NZ$6 million (AU$5.4 m) was the obvious disappointment; however, the company has announced that it expects to address this slide in coming months.

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