US market tarnishes Michael Hill's half-year results
Written on the 15 January 2018 by Paris Faint
Michael Hill International (ASX: MHJ) is poised to deliver sound results in the first half of 2018, despite feeling the pinch from poor sales performance in the United States.
The jeweller's group revenue increased by 4.7 per cent for the six months to 31 December and same-store sales in Australia remained flat while US segment sales declined by 10 per cent for the half.
The company says it will continue to watch the US closely, but has not indicated what the future of that market will be.
"Our US business continued to struggle and finished 10 per cent down for the half year," said the company.
"As previously indicated, the company continues to closely monitor the performance of the US segment given its ongoing poor performance."
Last year, the company also cited business struggles amid a "disrupted first half" in its 1H17 results.
While the US may be lacklustre for Michael Hill, over the border its neighbour Canada continues to shine.
Michael Hill opened seven new stores in Canada during the first half, taking the total number of stores to 83.
The company also reported a 4.8 per cent same store growth as well as a total sales growth of 18.1 per cent, making Canada one of the jewellers' most lucrative and fast-growing market.
Sales growth in Australian and New Zealand markets remained relatively flat for the half.
Michael Hill's fledgling brand Emma & Roe achieved total store sales growth of 20.1 per cent, opening one new store during the period.
Worldwide, the Michael Hill brand now encompasses 317 stores while Emma & Roe operates 30.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Paris Faint