In the first quarter ended 30 September 2015, Michael Hill achieved a global revenue increase of 9.9 per cent to AU$112.5 million compared to the previous corresponding period. Global same-store sales also rose 6 per cent to AU$107 million.
For the first time, these figures included sales from the company’s Emma & Roe business, which launched in April 2014.
“We have not previously released Emma & Roe trading results but now that the trial of this new brand is in its second full year we believe it is now appropriate to keep the market informed on its progress,” a Michael Hill financial statement read.
The Emma & Roe and Michael Hill businesses contributed AU$1.6 million and AU$110.9 million towards overall global revenue, respectively.
In Australia – a region that outgoing chairman Sir Michael Hill previously described as a “difficult market” – Michael Hill revenue increased 4.1 per cent to AU$66.6 million and same-store sales rose 2.9 per cent to AU$65.3 million.
Emma & Roe Australian stores recorded AU$1.4 million in revenue, an 83.2 per cent increase on last year, while same-store sales were up 44.6 per cent up to AU$1.1 million.
Results were also positive overseas, with same-store sales increases recorded across all markets. Sales in New Zealand were up 8.6 per cent to NZ$23.6 million (AU$21.6 m), Canada by 6.2 per cent to CA$15.7 million (AU$16.6 m) and the US by 1.2 per cent to US$2.1 million (AU$2.8 m).
Local, overseas expansion
Three Michael Hill stores opened during the period, bringing the total number to 291 at the end of the quarter. An Emma & Roe store also opened in Auckland, New Zealand during the quarter – the brand’s first brand-only outlet outside of Australia – taking the store count to nine.
“While the company still considers the Emma & Roe brand to be in a trial phase the group has plans to open a further two stores in the coming quarter,” the financial statement noted.
“This will take the brand to a critical mass in the South East Queensland market and give us the best indication of its commercial viability. The directors are pleased with the trading results to date.”
Meanwhile, following the opening of its first New York store in May this year at Queens Center, Elmhurst, Michael Hill is continuing its expansion in the US.
According to its 2015 annual report, Michael Hill has secured an outlet at the American Dream Meadowlands retail complex in New Jersey. The expected opening date was not mentioned.
As previously reported by Jeweller, Michael Hill also plans to open a store in Roosevelt Field, Garden City, New York later this year.
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