Michael Hill says sales bouncing back in US, Canada
Michael Hill International has released a profit guidance for the six months to December 31, indicating it expects a higher number than the 2009 interim result.
Michael Hill International has released a profit guidance for the six months to December 31, indicating it expects a higher number than the 2009 interim result.
In a statement to the stock exchange, chairman Sir Michael Hill (he was knighted in the New Years Honours list) said half year EBIT for the group is expected to be between $32-$34million compared to $30.3million for the corresponding period last year. (all figures are NZ dollars)
He said sales in the second quarter (October-December) including the key Christmas trading period held up well with ‘same store’ growth of 7.7% giving the group a ‘same stores’ improvement in sales of 9.8% for the half.
“The directors are especially pleased to see sales in Canada and the United States bounce back after tough trading conditions since late 2007, however retail conditions remain difficult in North America,” Sir Michael said.
The company said its total sales (five months of accounting adjusted sales plus December's preliminary sales), were $244.5 million, up 9.9%. Canada led the field with sales up 24.4% to $26.1 million from $21 million last year. The reduction of stores in the US ( eight stores were closed in June last year) saw sales fall 24.1%t to $5.66 million from $7.45 million.
Michael Hill's biggest market, Australia, had a 10.5% increase in total store sales to $180.8 million from $163.6 million. Locally, New Zealand sales rose 7% over the period to $56 million up from $52.4 million.
The official half year results for the 6 months ending 31 December will be released on 17 February. Shares in Michael Hill last traded at 88c, near their 52-week high.
Sir Michael's family are seeking a controlling stake in the jewellery retailer he founded, with a formal offer for a partial takeover to open this month.
NBR staff
Thu, 13 Jan 2011
Thu, 13 Jan 2011
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Michael Hill says sales bouncing back in US, Canada
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