New Zealand jewellery chain Michael Hill International has confirmed a lift in sales on Australian shores, despite sluggish sales on its home soil.
The company, which counts Australia as its biggest market with approximately 166 stores, today reported an after tax profit of $16.245 million for the six months ended December 31, 2013.
By region, its Australian retail segment increased its revenue by 5.5 per cent to $171.737 million for the six months with an operating surplus of $29.002 million, an increase of 3.6 per cent on $27.986 million for the previous corresponding period.
Same store sales in Australia also increased 1.4 per cent for the six months (3.8 per cent last year).
The New Zealand retail segment revenue decreased 3.5 per cent to NZ$60.939 million (A$56.552 million) for the six months, with an operating surplus of NZ$12.365 million (A$11.475 million), down 4.5 per cent on the corresponding period last year.
Same store sales in local currency during the six months decreased by 4.1 per cent (up 3.0 per cent last year).
Sales for the retailer in Canada, also increased over the period, with Michael Hill expected to invest in further expansion going forward.
Specifically, the Canadian retail segment increased its revenue by 28.5 per cent for the six months to CA$37.869 million (A$38.379 million). Same stores sales in local currency increased 7.9 per cent for the six months (3.8 per cent last year).
Commenting on the results for Canada, Michael Hill directors said they were “particularly pleased” with the progress of the Canadian business as it demonstrates the benefit of time in the market and a critical mass of stores being reached.
The US retail segment by comparison decreased its revenue by 8.4 per cent to US$5.030 million (A$5.592 million) for the six months.
Overall, the company opened 13 new stores and closed one store during the period.