Michael Hill sales up 10 per cent

Fluctuating gold prices and exchange rates will cut into quarterly profit, jeweller Michael Hill International warned today, despite posting a 10.5 per cent rise in same store sales for the period.

For the three months ended September 30, group same store sales for New Zealand, Australia and Canada totalled $61.5 million. Total sales rose 22 per cent to $70.3 million,

"The company is satisfied with the first quarter sales results.

"However, margins have been under pressure as a result of exchange rate and gold price fluctuations over the past six months which will impact on the group's bottom line for the quarter," chairman Michael Hill said.

New Zealand same store sales rose 4 per cent to $17.4 million, Australian sales rose 12 per cent to $41.5 million, and in Canada sales rose 24 per cent to $2.6 million.

The figures represented two months' adjusted sales, plus September preliminary sales before final accounting adjustments.

In local currency terms, sales in New Zealand and Australia rose 4 per cent, and were up 6 per cent in Canada.

Shares in Michael Hill last traded at $6.80, compared with a year high of $8.11 and a low of $6.55.

- NZPA