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

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

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

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)


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 0.7537 0.0001 0.01%
AUD 0.9657 0.0001 0.01%
EUR 0.6726 -0.0005 -0.07%
GBP 0.4891 0.0001 0.02%
HKD 5.8451 -0.0245 -0.42%
JPY 89.9760 -0.0060 -0.01%

Commods

Commodity Price Change Time
Gold Index 1209.6 5.080 2015-02-26T00:
Oil Brent 60.0 -1.580 2015-02-26T00:
Oil Nymex 48.3 -2.700 2015-02-26T00:
Silver Index 16.6 0.150 2015-02-26T00:

Indices

Symbol Open High Last %
NZX 50 5861.7 5865.5 5861.7 -0.24%
NASDAQ 4969.3 4989.1 4967.1 0.42%
DAX 11206.7 11330.6 11210.3 1.04%
DJI 18224.4 18239.4 18224.6 -0.06%
FTSE 6935.4 6950.0 6935.4 0.21%
HKSE 24718.3 24998.6 24778.3 0.50%
NI225 18587.9 18790.8 18585.2 1.08%