Michael Hill annual sales rise 3.4pc

The company is planning for growth, says Sir Michael Hill. Photo / NZME.

Michael Hill International, the listed jewellery retailer, increased full-year sales 3.4 per cent as a decline in its biggest market of Australia was outweighed by gains in New Zealand, Canada and the US.

Sales rose to A$495.6 million in the 12 months ended June 30, from A$479.3 million a year earlier, the Brisbane-based company said in a statement. The sales figures don't include its new Emma & Roe stores.

Michael Hill has previously warned weakness in Australia is likely to weigh on full-year earnings, scheduled for release on August 14. Australia's economic growth has slowed as prices for the country's commodity exports, such as iron ore, have dropped, weighing on consumer confidence. Australian sales, which account for 59 per cent of total sales, dropped 1.4 per cent over the year, and by 2.5 per cent on a same-store basis, which excludes changes in store numbers, the company said today.

The company didn't provide a forecast for its full-year earnings. First-half profit rose 46 per cent to A$23.7 million.

It opened 12 Michael Hill stores during the year, and closed two, taking the total to 288 stores, and added two Emma & Rose stores during the year, taking the total to eight.

In the full year, New Zealand sales rose 6.7 per cent to A$106.2 million, or 7.2 per cent on a same-store basis.

In Canada, sales jumped 15 per cent to A$81.3 million, or 3.1 per cent on a same-store basis. In the US, sales increased 25 per cent to A$13.6 million, or by 14 per cent on a same-store basis.

Shares in Michael Hill last traded at $1 and have declined 15 per cent so far this year.