Jewellery chain Michael Hill International has revealed a revenue rise of 6.8 per cent for the fiscal year, but has joined fellow NZX-listed retailers in citing difficult trading conditions in Australia.
The company, based in Brisbane, said total sales for the 12 months to June 30 rose 6.8 per cent on the previous year to $NZ541.5 million ($A467.62 million), compared to $NZ507.3 million a year earlier.
Same-store sales lifted 0.4 per cent to $NZ492.7 million ($A425.47 million), compared with a 0.3 per cent decline the year earlier.
Sales in the fourth quarter were difficult for the group, however, with flat sales growth in the key Australian market and negative growth in the other three markets for the quarter.
Despite this, Michael Hill reported that the year finished slightly up for the group in NZD and all markets finished with positive sales growth in local currency on a same-store basis, with sales achieved on a higher margin.
The company also noted that the contribution from new stores opened during the year in particular, resulted in the revenue lift of 6.8 per cent, and said the directors are “satisfied with the performance over the past 12 months, especially given the ongoing challenging environment”.
Michael Hill's flagging of the touch Australian market at the moment, sees the company become the third NZX-listed retailer to flag difficult trading conditions here, following similar reports recently from both childrenswear label Pumpkin Patch and fast fashion chain Hallenstein Glasson.
As reported on ragtrader.com.au, Hallenstein Glasson revealed last week that local competition in Australia may be to blame for an expected drop in the retailer's annual profit this year. Pumpkin Patch followed its lead shortly after, also recently downgrading its expected earnings for the full year 2013, due to the impact of tough trading conditions in Australia.