Michael Hill sales growth weighed down by Australia

Sir Michael Hill

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

BUSINESSDESK: Michael Hill International, the listed jewellery chain, says full-year same-store sales edged up 0.3% as revenue in its largest market of Australia continues to shrink.

Same-store sales, which measures outlets open at least 12 months, fell to $473 million in the 12 months ended June 30, from $487.9 million a year earlier, the company said.

Total sales rose 4.6% to $510 million.

"While the past 12 months has had its challenges, especially in our largest market in Australia, the directors are satisfied with the overall performance of the group and in particular the growth achieved in New Zealand, Canada and the United States," chairman Sir Michael Hill said.

Same-store sales in the US rose 11.7% to about $12 million, followed by New Zealand, up 7.3% to $106 million, and Canada rising 0.7% to $45 million. Sales in Australian decreased 3.2% to $308 million.

The company’s professional care plan, which offers maintenance and repairs on jewellery, recorded a 131% increase in sales to about $27 million in the latest 12 months.

"Professional care plan sales continue to contribute positively to the company’s cashflow," Sir Michael said.

"The revenue from these plans is carried on the balance sheet as deferred revenue and is then brought to income over the life of the plans”, which are for three years or lifetime.

The jewellery maker's full-year results for the 12 months ended June 30 will be released on August 17.

Its shares are currently unchanged on 99 cents. They have gained about 12% this year.
 


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 0.6807 -0.0025 -0.37%
AUD 0.8872 -0.0034 -0.38%
EUR 0.6088 -0.0008 -0.13%
GBP 0.4329 -0.0018 -0.41%
HKD 5.2773 -0.0193 -0.36%
JPY 83.2140 -0.6400 -0.76%

Commods

Commodity Price Change Time
Gold Index 1178.5 3.520 2015-06-29T00:
Oil Brent 62.0 -1.250 2015-06-29T00:
Oil Nymex 58.3 -1.300 2015-06-29T00:
Silver Index 15.7 -0.080 2015-06-29T00:

Indices

Symbol Open High Last %
NZX 50 5705.8 5737.4 5705.8 0.49%
NASDAQ 5021.2 5051.0 5080.5 -2.40%
DAX 11404.7 11409.8 11492.4 -3.56%
DJI 17936.7 17936.7 17946.7 -1.95%
FTSE 6753.7 6753.7 6753.7 -1.97%
HKSE 25944.0 26182.3 25967.0 0.81%
NI225 20174.6 20223.0 20110.0 0.11%