Global jewellery empire Michael Hill International has reported a rise in sales and profit.
The New Zealand company, which has 52 stores in its home country, 146 in Australia, 33 in Canada and nine in America, has today revealed its annual report for the year ending June 30 2011.
In NZ$ the company's operating revenue of $489.330 million was up 10.3 per cent on the same period last year and same store sales were 9.2 per cent up.
Earnings before interest and tax (EBIT) of $45.638 million were up 28.4 per cent on the same period last year and net profit before tax, of $39.985 million, was up 32.4 per cent on last year.
Net profit after tax ,of $34.499 million, was also up 32.6 per cent.
Michael Hill's chief executive officer, Mike Parsell, said the strong focus on the performance of same stores, including the refurbishment of existing stores and selective opening of new stores, resulted in the company improving its bottom line position again this year.
“As a result, cash flows increased and net debt levels reduced leaving the company in a strong position,” Parsell said.
“The retail environment was still very challenging in North America and became more difficult in Australia during the second half of the year.
“The continuing economic difficulties around the world, combined with unexpected natural disasters in New Zealand and Australia, dampened consumer confidence and made retail challenging.”
Michael Hill manufactures and retails fine jewellery, conducts jewellery repair, valuations, insurance quotations, custom design, corporate gifts and gift vouchers through its network of stores and employs more than 2,000 staff.
During the financial year the company continued to rollout new stores and refurbish old ones in a bid to create a distinctive look and differentiate them from competitors.
The company's priorities for the 2011/12 financial year include opening 20 new stores across the group, achieving profit in Canada and increasing 'same store' sales and EBIT.
Chairman, Sir Michael Hill, who started the company in 1979, said the group has a 'very sound' balance sheet and remains in a strong position to take advantage of growth opportunities as they arise.
“New store openings are being evaluated in all four markets, however in the current economic climate only the very best opportunities will be considered and the emphasis will remain on growing same store sales, managing margins and controlling costs,” Hill said.