Michael Hill flags increased 1H earnings as sales rise 10%

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

Michael Hill International [NZX: MHI], the jewellery chain that bears the name of its founder, expects first-half earnings to rise after reporting a 10 percent lift in sales over the period.

Earnings before interest and tax were between A$29 million and A$30 million in the six months ended Dec. 31 from A$28.6 million a year earlier, the Brisbane based jeweller said in a statement. That came from as sales rose to A$270.8 million across all its stores from A$246.3 million in 2013.

The revenue gains were led by a 38 percent increase in Michael Hill's Canadian stores, which generated A$39.4 million, up from A$28.5 million.

New Zealand sales, when converted into local currency from the Australian dollar which the company reports earnings in, fell 4.1 percent, to NZ$60.9 million.

"Our New Zealand stores continued to struggle," said the company in a statement. "This fall in revenue for the half was in part due to the settling in of a new retail management team mid-2013. The company is confident this decline will be reversed in the coming months."

In Australian dollar terms, New Zealand sales rose 8.2 percent to A$49.7 million. A weaker Australian dollar supported the group's 10 percent lift in revenue, which accelerated from an 8.7 percent rise in the first quarter.

Michael Hill's Australian revenue rose 5.5 percent to A$171.7 million, while US sales gained 3.8 percent to A$5.5 million.

The company said sales in the US had been affected by the severe winter conditions over the Christmas period.

Shares in Michael Hill International were unchanged at $1.44, and have gained 18 percent over the past 12 months.

(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

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6607 -0.0056 -0.84%
AUD 0.9062 -0.0054 -0.59%
EUR 0.6045 -0.0019 -0.31%
GBP 0.4236 -0.0032 -0.75%
HKD 5.1248 -0.0400 -0.77%
JPY 82.0540 -0.4960 -0.60%

Commods

Commodity Price Change Time
Gold Index 1088.6 -4.010 2015-07-30T00:
Oil Brent 53.3 -0.070 2015-07-30T00:
Oil Nymex 48.5 -0.250 2015-07-30T00:
Silver Index 14.7 -0.040 2015-07-30T00:

Indices

Symbol Open High Last %
NZX 50 5891.9 5899.7 5891.9 0.06%
NASDAQ 5100.3 5135.6 5111.7 0.33%
DAX 11305.5 11313.3 11211.9 0.40%
DJI 17743.2 17761.2 17751.4 -0.03%
FTSE 6631.0 6697.4 6631.0 0.57%
HKSE 24822.4 24872.7 24619.5 -0.49%
NI225 20450.6 20583.6 20302.9 1.08%