(BusinessDesk) Michael Hill International, the listed jewellery chain, lifted first-quarter revenue rose 14% in New Zealand dollar terms, boosted by an improvement in its North American and Australian markets.
Michael Hill shares (NZX: MHI) jumped almost 8% by mid-afternoon to $1.22, reversing yesterday's 1.7% drop. The stock started the year at 87 cents.
The Brisbane-based company says total sales climbed to $116.4 million in the three months ended September 30, from $101.8 million a year earlier. Same-store sales rose 8.5% to $108 million.
Total Canadian sales jumped 29% to $12.3 million, followed by Australia, up 14% to $78.9 million.
"All markets traded well over the first quarter and it was pleasing to see our largest market Australia lift its performance after a slow down during 2011-12," chairman Sir Michael Hill says.
"The sales growth shown during the quarter was achieved without the need to reduce margins."
In August, the company posted a 5.8% increase in annual profit to $36.5 million as recovering sales in New Zealand, Canada and the US made up for shrinking revenue in Australia, which is the current financial year's focus.
US sales rose 10.6% to $2.5 million in the latest period, while New Zealand sales increased 8% to $22.7 million.
Sales for the company's professional care plan, which offers maintenance and repairs on jewellery, rose 20% to $6.5 million.
"The directors are satisfied with the performance over the first quarter however the key December quarter is now upon us and this will to a large extent determine the group's result for the year," Sir Michael says.
The stock is rated an average "outperform" based on the consensus of two analyst recommendations compiled by Reuters.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Still hope for TPP insists trade expert Stephen Jacobi
- NZIER's Christina Leung says increased migration is putting pressure on wages
- NBR’s Jenny Ruth with daily coverage of the Ralec case
- Iraq nears collapse while China doubts its own statistics in Foreign Affairs Scope with Nathan Smith
- Mark Weldon couldn't hack the pressure, says Bill Ralston