Michael Hill enjoys solid trading
A recovery in its main Australian market has helped jeweller Michael Hill post solid sales gains in the first quarter of the financial year, with demand strong enough to avoid any discounting.
In a statement filed with the NZX today, the firm's sales trading revenues for the three months to September 30 rose 14.3 per cent to $116.4 million compared with the same period a year ago.
Same store sales - or revenue from outlets trading for a year or longer - rose 8.5 per cent to $108.6m.
"All markets traded well over the first quarter and it was pleasing to see our largest market, Australia, lift its performance after a slow down during 2011-12," said chairman Michael Hill.
"The sales growth shown during the quarter was achieved without the need to reduce margins."
Total Australian sales rose 14.3 per cent to $78.9m in the first quarter on a year ago, while New Zealand sales rose 8 per cent to $22.7m.
The firm's fledgling North American operations continued to show robust growth, with total US sales up 29.3 per cent to $12.2m, largely driven by new store openings.
Canadian sales rose 10.6 per cent to $2.5m.
The firm's professional care plan continued to maintain its momentum, with PCP revenue collected up 20.2 per cent to $6.5m.
Of that $2.3 million was booked as income, up by 330 per cent compared with a year ago when the scheme was first being introduced.
"The directors are satisfied with the performance over the first quarter, however the key December quarter is now upon us and this will to a large extent determine the group's result for the year," said Hill.
Michael Hill shares fell 1.7 per cent yesterday to $1.13, but have gained about 40 per cent over the past 12 months.
- © Fairfax NZ News