Michael Hill's US operations take a final dive
Written on the 10 July 2018 by David Simmons
Following the completion of its exit from the US market, Michael Hill's US offering fell 28.5 per cent in the 12 months to June 30 2018.
The jewellery retailer planned to exit the market earlier in 2018 after failing to secure a buyer for its operations in the US.
The total revenue from its operations in the US in FY18 was $11.5 million, down 28.5 per cent from 16.2 million in FY17.
Overall, the company had a fairly average year, with revenue increasing 3.3 per cent for the year ending 30 June 2018, and same store sales growing by 0.4 per cent.
Michael Hill same store sales improved by 2.2 per cent in New Zealand and 3.5 per cent in Canada, but slipped 0.9 per cent in Australia.
During the year, 17 stores were opened and five under-performing stores were closed. Over in the US, 9 Michael Hill stores and 24 Emma & Roe stores were closed as part of the company's decision to "focus on its core business".
Total revenue for FY18 reached $599.7 million, up 3.3 per cent from FY17.
Despite announcing earlier in the year that the company planned to reduce the store footprint of Michael Hill's Emma & Roe brand, total sales growth for Emma & Roe was up 9.6 per cent.
The company has now completed the exit of the initial 24 Emma & Roe stores identified for closure.
The company will continue to shut down the brand following a review of the group's focus and priorities.
Shares in Michael Hill are down 0.03 per cent to $0.94 per share at 12.27pm AEST.
Business News Australia
Author: David Simmons