New stores help boost Michael Hill

Michael Hill Jeweller on Queen Street. Photo / Doug Sherring

Listed jewellery retailer Michael Hill International said first-quarter sales rose 9.9 per cent, driven by new store openings and increased revenue from existing stores.

Sales rose to A$112.5 million ($122.4 million) in the three months to September from A$100.9 million a year earlier, the Brisbane-based company said.

Same-store sales were up 6 per cent to A$107 million.

The retailer reported weaker earnings in Australia, its largest market, in the year to June and cut its dividend for the first time in six years. But it flagged plans to open eight more Australian stores by 2018.

The Australian market achieved 2.9 per cent same-store growth to A$65.3 million, the company said.

New Zealand same-store sales rose 8.6 per cent to $23.6 million in local currency terms and Canadian stores rose 6.2 per cent to C$15.7 million ($18.2 million). US sales from stores open at least 12 months rose 1.2 per cent to US$2.1 million ($3.2 million).

Michael Hill also disclosed revenue for its Emma & Roe chain selling charm bracelets and accessories, which is in the second year of a trial. That business doubled sales to A$1.57 million, a 45 per cent increase on a same-store basis.