Jewellery chain Michael Hill has revealed it did not reach Christmas sales targets, adding to reports of a sluggish season for the retail sector.
Sales growth stalled in the second quarter, which limited earnings growth in the first half of the year.
"December quarter sales, including the critical Christmas trading period, fell short of our forecasts and didn't deliver the improvement over last year that the company had expected," Michael Hill International said in an earnings update.
Despite the slow second quarter, sales for the first half of the fiscal year rose 8.8 per cent to $312.8 million.
This was led by growth in its biggest market of Australia, up 9 per cent to $206.7 million.
Gross earnings were in the range of $34 million to $36 million, from $34.8 million a year earlier.
As reported on ragtrader.com.au earlier this month, retail industry groups have said the recent Christmas trading season was below historic sales levels.