Michael Hill 9-month sales rose 10.5%, led by Canadian, Australian growth

Michael Hill International 12-month price history (NZX.com)

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.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7253 0.0017 0.23%
AUD 0.9511 0.0012 0.13%
EUR 0.6448 0.0012 0.19%
GBP 0.5611 0.0038 0.68%
HKD 5.6285 0.0195 0.35%
JPY 72.7930 -0.1860 -0.25%

Commods

Commodity Price Change Time
Gold Index 1337.5 1.600 2016-09-23T00:
Oil Brent 46.5 -1.730 2016-09-23T00:
Oil Nymex 44.5 -1.790 2016-09-23T00:
Silver Index 19.8 -0.290 2016-09-23T00:

Indices

Symbol Open High Last %
NZX 50 7296.7 7296.7 7296.7 -0.44%
NASDAQ 5327.4 5329.7 5339.5 -0.63%
DAX 10555.2 10560.8 10627.0 -1.63%
DJI 18377.4 18383.8 18392.5 -0.71%
FTSE 6909.4 6909.6 6909.4 -1.07%
HKSE 23554.8 23563.5 23686.5 -1.56%
NI225 16707.5 16707.5 16754.0 -1.25%
ASX 5431.3 5436.1 5431.3 0.00%