National Jeweler Network

Financial Reporting

Michael Hill closes one US store

2013-08-19

Brisbane, Australia-- Michael Hill International Ltd. now has eight stores in the United States instead of nine, the Brisbane-based chain retailer reported in its fiscal-year results released Friday.

According to the company’s results for the fiscal year ended June 30, the ninth store closed sometime between June 30, 2012 and June 30, 2013.

During the period, same-store sales in the U.S. market increased 6 percent year-over-year. Total sales (in local currency) reached $10.3 million, up 7 percent from $9.6 million in the prior fiscal year.

Earnings before interest and tax (EBIT) shrunk as a percentage of revenue, from 28 percent in 2012 to 23 percent in 2013. 

Total sales for Michael Hill increased 7 percent year-over-year while net profit after taxes was up 10 percent.

All of Michael Hill’s U.S. stores are in Illinois, with the company’s U.S. headquarters in Chicago. The market represents just 2 percent of its total operations.

According to the presentation released Friday, Michael Hill does not have plans to open any stores in the U.S. through 2016, though the company stated that “experimentation and testing” of the market was among its priorities for the fiscal year that began July 1, 2013.

The company opened a net of 15 stores in fiscal year 2013: 10 in Australia and Canada but none in New Zealand or the U.S. Michael Hill said it plans to open 20 new stores in the coming fiscal year and re-launch its e-commerce website.