Michael Hill cotinues to go against the grain with soaring profits
Michael Hill jewellers reports soaring profits
By Aaron Weinman
Jewellery chain Michael Hill has reported a net profit of $34.4 million this financial year.
Despite the dire climate surrounding retailers, Michael Hill International announced that its full-year profit jumped about a third, as sales recovered in Australia, New Zealand and Canada.
According to a company statement to the New Zealand Stock Exchange, revenue rose to $34.4 million by June 30, up from the $26 million reported in 2010.
The company announced that the result reflected good top line sales recovery following a tough trading period previously. “The retail sector remained difficult in all markets and increased investment in marketing, consumer payment plans and inventory levels were required to achieve these gains on sales,” chairman, Sir Michael Hill said in a statement to the NZ stock exchange.
Australia was the largest contributor with revenue of $250.9 million, up 6.2 per cent with an operating surplus of $38.9 million, up from $38.1 million in 2010.
A number of new stores have been opened in Australia this year, bringing the company total to 148.
Even with the current state of the retail industry, both the Australian and New Zealand segments managed to increase revenue and bottom lines. According to Michael Hill, the company remained successful due to brand strength and the maturity and strategies of its teams, falling into place.
The success of its Australian and New Zealand operations follows the stabilisation of its operations in the USA, after the decision to downsize its operations from 17 to nine stores.
Same store sales rose 20.3 per cent, however Hill said further improvement was needed before the company would look at store growth in the US.
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Posted August 23, 2011