Michael Hill 9-month total store sales rise 5.5pc

Emma Hill, chairwoman of Michael Hill International. S

Michael Hill International's newly opened stores in Australia and Canada helped drive a 5.5 per cent increase in sales in the first nine months of its financial year, outpacing an increase in same-store revenue as trading in New Zealand and the US remained tough.

In the flagship jewellery chain stores, the retailer posted a 4.4 per cent increase to A$435.6 million in nine-month sales, while same-store gained a more modest 0.8 per cent to A$411.5m, the Brisbane-based retailer said in a statement. For the Emma & Roe brand, sales jumped 70 per cent to A$11.8m but same-store sales growth slipped 1 per cent to A$5.6m. Total sales rose to A$447.4m in the nine months through March from A$424m a year earlier.

Eight Michael Hill stores and 10 Emma & Roe stores were opened during the period, giving the company a total of 330 stores trading as at March 31, including 304 Michael Hill stores and 26 Emma & Roe stores. The company plans to open eight Michael Hill stores and four Emma & Roe stores in the final quarter of the year.

Trading conditions in its two biggest markets, Australia and New Zealand, "continued to be challenging," it said. Same-store sales rose 0.4 percent in Australia in the nine months in Australian dollars. The New Zealand business segment finished down 1.4 per cent for the period in New Zealand dollars.

In the US the business "continues to struggle" and same-store sales fell 11 per cent while total sales for all stores fell 9.1 per cent in US dollars. It underscored, however, after some management changes in September last year it is in the process of rebuilding for this test market.

The Canadian business continued to outperform for the retailer with same-store sales growth of 7 per cent and all store growth of 17 per cent.

While Emma & Roe same-store sales were down in the third quarter, Michael Hill said it has secured and opened some new locations in Queensland and New South Wales which will "allow us to increase our marketing spending in the following 12 months as critical mass is achieved in each advertising region."

Michael Hill's dual-listed shares were down 1.3 per cent at $1.48 on the NZX and have gained 55 per cent over the past year.