Michael Hill International [NZX: MHI], the jewellery chain that bears the name of its founder, reported a 10.5 percent gain in sales for the first nine months of the year, led by growth in Canada and Australia.
Sales rose to A$372 million in the nine months ended March 31, from A$336.8 million a year earlier, the Brisbane-based retailer said in a statement. Same-store sales rose 5.4 percent to A$338.6 million.
The company relocated to Australia in 2008, transferring its intellectual property to an Australian subsidiary in a transaction that put its head office in its largest market and generated tax breaks. Early this month Michael Hill announced an A$6 million settlement with the Australian Tax Office, which had disputed the valuation of IP.
Same-store sales in Australia rose 1.4 percent to A$214 million in the first nine months, while Canadian sales rose about 17 percent to A$41 million and US sales rose 17 percent to A$7.8 million.
Same-store sales in New Zealand gained 10 percent to A$75.2 million, although this largely reflected a strengthening kiwi dollar against the Australian dollar. In local currency terms, New Zealand sales fell 2.9 percent to $83 million.
Sales from the retailer's professional care plan business rose about 23 percent to A$24.5 million and the company brought A$13 million of PCP revenue to income, up 99 percent from the same period a year earlier.
The shares last traded at $1.33 on the NZX and have slipped 0.8 percent in the past 12 months. The stock is rated a 'buy' based on the consensus of three analysts polled by Reuters.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- READER POLL RESULT: Will a land tax on foreign-based house buyers cool the housing market?
- Facebook exec on info requests from NZ govt agencies: the numbers, and the criteria for forking over your data
- Concession on fees sees ANZ first onboard for Apple Pay
- EPL options narrow: Sky, beIN or nothing
- Speculation over Hilary Barry's next move
Most listened to
- Listen to the week’s top business news on NBR Radio’s week in review
- Matthew Hooton on Winston Peters’ plan to become prime minister
- Tim Hunter asks: Is the government planning to hand control of water to iwi?
- Rob Hosking breaks down the political and economic week that was: Has everyone gone tax mad?
- Rodney Hide on the technological development and economic advance in transport