Michael Hill jewellery sales on track

Posted February 18, 2014 | By Jonathan Green

Michael Hill International has released its full financial results for the six months ended 31 December 2013, showing an operating revenue increase of 9.8 per cent on the same period last year.

The finalised results align very closely to the interim figures released in January with overall revenue for all stores totalling AU$270.75 million.

The jewellery retailer achieved a net profit before tax figure of AU$28.485 million, an increase of 5.1 per cent on last year.

Store-by-store analysis demonstrated growth in Australia, Canada and the United States, with a small decline in the New Zealand market, for a total increase of 4.7 per cent on the same period.

In the official statement, the directors said they were “particularly pleased” with results in Canada and had plans to invest further in the area in the future. It also acknowledged strong growth in Australia, and stated that steps had been put in place to address the slide in the New Zealand stores.

While store-by-store sales in the United States were up, a store closure and currency exchange rate fluctuations resulted in a revenue loss.

As a result of the figures, the directors have announced an interim dividend of 2.5c per share to be paid on 1 April 2014.

Region breakdown
Michael Hill’s largest market, Australia, saw an increase in revenue of 5.5 per cent to AU$171.737 million for the six months. Same store sales increased 1.4 per cent.

New Zealand revenue decreased 3.5 per cent to AU$56.552 million, with a 4.1 per cent decrease in same store sales.

Canadian operations increased revenue by 28.5 per cent to AU$38.379 million, with store-by-store sales in local currency increasing by 7.9 per cent for the six months.

United States revenue dropped 8.4 per cent to AU$5.592 million; however, same store sales in local currency saw an increase of 2.0 per cent.

Openings and closures
A total of 279 Michael Hill stores were operating as at 31 December 2013, with 13 new openings and one closure through the six-month period.

Of the 13 new sites, four were in Australia, eight were in Canada and one was in New Zealand, while the closure was in the United States.

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Solid end to 2013 for Michael Hill Jewellers