Michael Hill revenue climbs 4.7% on back of new stores

New stores have helped lift Michael Hill International’s group sales. Photo: Getty Images
New stores have helped lift Michael Hill International’s group sales. Photo: Getty Images
The opening of new stores in Australia, Canada and New Zealand helped Michael Hill International increase its group revenue by 4.7% in the six months ended December.

In a release to the NZX, the group said same-store sales grew by 0.5% in the period.

The Michael Hill brand delivered total store sales growth of 4.3% and same-store sales growth of 0.7% in the period.

Michael Hill same-store sales improved 3.4% in New Zealand and by 4.8% in Canada. In Australia, same-store sales were flat and the United States segment sales fell by 10% for the half-year.

Emma & Roe achieved total store sales growth of 20.1%, although same-store sales were down by 5.4%.

Group chief executive Phil Taylor said the Canadian store rollout continued strongly. Seven new stores opened in the period, bringing the total store numbers to 83.

Fourteen Michael Hill stores and one Emma & Roe store were opened during the period, giving a total of 347 stores trading at December 31. They were made up of 317 Michael Hill stores and 30 Emma & Roe stores.

Online sales increased by 71% to $A5.6 millon ($NZ6.1 million) for the period, he said.

Mr Taylor said the New Zealand segment performed solidly during the period. One store was opened during the period, giving a total of 53 stores trading at December 31.

Canada continued to perform. Same-store sales growth of 4.8% was reported in the half and total store sales growth reached 18.1%. Seven stores were opened during the period, giving a total of 83 at the end of the period.

"The pace of further [Canadian] openings will be dictated to a large extent by the availability of suitable locations and satisfactory lease terms," Mr Taylor said.

The US business continued to struggle. As previously indicated, the company continued to closely monitor the performance of the US segment given its ongoing poor performance, he said.

Six new stores were opened in Australia, giving a total of 172 at the end of December.

Michael Hill has its primary listing on the ASX and reports its profit in Australian dollars.

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