Bucking any recent retailer trends, Michael Hill continues to prosper with increased sales in all its markets
Michael Hill prospers from US expansion
By Aaron Weinman
Michael Hill International reported increased revenues in the first quarter off the back of improved US sales and store openings in Australia.
The New Zealand-based jewellery retailer’s revenue from all stores in all its markets climbed to NZ$101.4 million (AUD$80 million) in the three months ending September 30, up 6.5 per cent from NZ$95.2 million (AUD$74.2 million) in the previous corresponding period.
Michael Hill also recorded a modest rise in total store sales in its home country, with sales in New Zealand accounting for NZ$20.9 million (AUD$16.28 million) of its revenue, up one per cent from last year’s reported NZ$20.7 million (AUD$16.12 million).
Sales in the retailer’s largest market, Australia, rose to NZ$68.7 million (AUD$53.5 million), up 7.2 per cent from NZ$64.1 million (AUD$50 million) for the same period last year.
A number of new stores opened in Australia over the year, bringing the company’s total to 148.
Meanwhile, US sales rose 20.5 per cent across all stores recording a figure of NZ$2.28 million (AUD$1.78 million) compared with NZ$1.89 million (AUD$1.48 million) from the year previous.
In addition, the retailer’s other major North American market, Canada saw an 11.3 per cent increase in sales throughout all stores, recording NZ$9.43 million (AUD$7.35 million) compared to the 2010 figure of NZ$8.48 million (AUD$6.61 million).
In a statement issued by chairman Michael Hill, the company’s founder claimed the board was “pleased” with the results of a “challenging” year.
“Sales have been challenging in our established three markets (Australia, New Zealand and Canada) during the first quarter. The US business has experienced some strong growth over the corresponding period last year,” said Hill. “Overall the board is pleased with the sales results, especially given they were on the back of strong growth in the first quarter of last year.”
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Posted October 18, 2011