Archive | Michael Hill

Propbd on Q F8Jan16 – Michael Hill sales and maybe ASX listing, Summerset sales

Michael Hill lifts sales across board
Jeweller considers ASX listing
Summerset lifts sales

10am:
Michael Hill lifts sales across board

Jewellery retailer Michael Hill International Ltd lifted same-store sales by 4.8% in $A in the second half of 2015.

The company said same-store sales in local currency rose 6.1% in New Zealand, Australia 2.6%, Canada 5.2%, the US 1%.

Overall half-year sales for all stores in local currency (2014 in brackets) were: NZ $67.1 million ($63.2 million), up 6.1%, Australia $174.4 million ($168.5 million), up 3.5%, Canada $53.1 million ($44.9 million), up 18.4%, US $7.4 million ($5.9 million), up 25.1%.

The new Emma & Rose brand’s sales in Australia & New Zealand rose 89.4% to $A4.6 million ($A2.4 million). In New Zealand only, the rise was 266% to $393,200 ($107,500).

Jeweller considers ASX listing

Michael Hill International Ltd also said today its board was considering an ASX listing. The chair, Emma Hill, said 60% of its stores were in Australia, generating 64% of group ebit, Chief executive Mike Parsell said: “Over the past decade we have progressively migrated the majority of our key functions to Australia, including the global support centre, wholesale & manufacturing divisions & executive team. The intellectual property in our retail systems was transferred to Australia in 2008 and in the 2014 financial year the group moved to report in Australian currency as required by international financial reporting standards.”

Summerset lifts sales

Retirement village developer & operator Summerset Group Holdings Ltd achieved 146 sales in the December quarter – 90 new, 56 resales.

Chief executive Julian Cook said the new sales were a high for the year, while resales were slightly below previous quarter results. The company lifted total sales of occupation rights for the year from 458 in 2014 to 578 – new sales up from 286 to 333, resales up from 172 to 245.

Mr Cook said a driver of the strong demand was the continuing development at a number of villages. More resale units had also become available.

Attribution: Company releases.

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Propbd on Q Th23Jan14 – Allied to settle, Jeweller’s NZ sales down, Warehouse recovers

Allied to settle with Speirs next week
3-nation growth for Michael Hill, but NZ down
Strong Christmas helps Warehouse recovery

11.30pm:
Allied to settle with Speirs next week

Allied Farmers Ltd said today all conditions had been satisfied for settlement of a $2 million obligation to Speirs Group Ltd relating to a 2008 put-&-call option contract with Speirs. Settlement is scheduled for Friday 31 January.

Speirs acquires 14% of Allied as part of the deal. The Allied share price when the deal was announced in December was 3.6c. It promptly rose to 4.8c, made it up to 5.3c and was at an even half cent today.

Earlier story, 28 December 2013: Speirs gets 14% of Allied Farmers to settle 2008 deal, plans to re-enter finance sector

3-nation growth for Michael Hill, but NZ down

Michael Hill International Ltd said today it achieved 4.7% same-store growth in the December half (5 months plus preliminary December sales figures) compared to the same period of 2012. Chairman Sir Michael Hill said weakening of the $A against the other 3 currencies it trades in helped the result – the jewellery retailer announced last October it would report all its results in the Australian currency.

In local currency, Michael Hill’s Australian same-stores were up 1.4%, Canada 7.9%, the US 2%, but New Zealand fell 4.1%. Sir Michael said the New Zealand decline was “in part due to the settling in of a new retail management team mid-2013. The company is confident this decline will be reversed in the coming months. The US business performed solidly, finishing 2% up for the 6 months, however trade was adversely affected by severe winter conditions leading into the key Christmas trading period.”

The company will release its full half-year results on Friday 14 February. It’s expecting ebit to come in at $A29-30 million, up from $A28.6 million last year.

Strong Christmas helps Warehouse recovery

The Warehouse Group Ltd said Christmas trading across the group was strong, but wouldn’t fully offset the Red Sheds’ first-quarter margin issues.

Group chief executive Mark Powell said Red Shed sales were expected to be up 4% for the half and total sales up 5%, returning second-quarter gross profit margins to the previous year’s second-quarter levels.

Forecast adjusted group net profit after tax for the December half is $46-48 million, on trading profit down 1-2%.

The Warehouse will release its half-year results & full-year guidance on Friday 7 March.

Attribution: Company releases.

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December-quarter sales lift Michael Hill

Published 9 January 2010

Michael Hill International Ltd rose from a flat September quarter to a 4.4% improvement in same-store sales at the end of the December quarter.

 

The translation to $NZ didn’t help the company’s Canadian & US results, which were much stronger in local currency, although the Canadian same-store performance was still a loss.

 

Chief executive Mike Parsell said yesterday retail conditions were still difficult in North America, although some encouraging trends emerged in the second quarter.

 

As well as the same-store lift, all-store sales rose by 7.9% for the half-year. The sales figures are based on 5 months sales-adjusted plus preliminary figures for December, all unaudited.

 

In $NZ, same-store sales for the half-year were:

Australia, $153.3 million, up 6.2%NZ, $51.7 million, up 5.4 %Canada, $16.2 million, down 12.6%Total, $221.2 million, up 4.4%.

 

All-store sales in $NZ were:

Australia, $163.4 million, up 8.8%NZ, $52.3 million, up 5.5% Canada, $21.1 million, up 7%US, $7.5 million, up 7%Total, $244.3 million, up 7.9%.

 

Same-store sales in local currency were:

Australia, $C124.4 million, up 3.6%NZ, $51.7 million, up 5.4%Canada, $C12.5 million, down 4.9%

All-store sales in local currency were:

Australia, $A132.6 million, up 16%NZ, $52.3 million, up 5.5%Canada, $C16.3 million, up 16.6%US, $US5.3 million, up 30.9%.

 

Michael Hill International will release its half-year operating results on Thursday 18 February. Want to comment? Go to the forum.

                                                                                              

Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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Michael Hill opts for cashflow over margin

Published 11 January 2009

Listed jeweller Michael Hill International Ltd opted for sales over margin in December because of economic uncertainty, chairman Michael Hill said on Friday in a trading update for the December half.

 

“December sales targets were difficult to achieve in the tough retail conditions we were facing, especially in New Zealand & Canada. Margins for the group will be significantly lower for the half due to exchange rate deterioration on inventory purchases and also due to the difficult conditions that necessitated us going on “sale” in all markets earlier than normal.

 

“A conscious decision was made to target sales at the expense of margins due to the uncertainties of the current economic climate. Managing inventories & cashflow was seen as a priority.“With lower margins & several one-off costs associated with the US acquisition & internal restructuring, the first-half trading result (excluding restructure tax benefits) will be materially below last year’s record interim result of $19.45 million. The interim result will be released on 20 February.”

 

Same-store sales, in local currency, were up 1.2% in Australia to $A113.7 million, down 9.3% in New Zealand to $48 million, down 10.4% in Canada to $C10.1 million.

 

For all stores, local currency, Australian sales rose 5% to $A125.4 million, New Zealand sales fell 7.6% to $49.6 million, Canadian sales rose 3.9% to $C14 million and the new US division achieved $US4.1 million of sales. Transferred to $NZ, total same-store sales were down 1% to $198.9 million but all-store sales rose 8.7% to $226.9 million.Want to comment? Email [email protected].           

Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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Michael Hill sales slip in Australia, up slightly in NZ

Published 11 January 2006


Jewellery chain Michael Hill International Ltd said yesterday its New Zealand & Canadian sales were up in the December half but Australian sales were down.



Same-store sales in Australia for the December quarter were down 4.3% (5.3% in $A) on 2004.Same-store New Zealand sales for the December half rose 1.6%, Australian sales fell 2.3% and Canadian sales rose 9.9%.Group net profit after tax for the half was now expected to be in the range of $10.5-11.5 million, based on implementation of the new international financial reporting standards, which the company adopted from 1 July 2005.


Michael Hill made $12.2 million in the December 2004 half, which will be restated in February. The company will release its latest results on Thursday 16 February.


If you want to comment on this story, write to the BD Central Discussion forum or send an email to [email protected].

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Michael Hill sales up 9.6%, NZ 2.4%

Jewellery company Michael Hill International Ltd increased all-store sales by 9.6% to $45.4 million and same-store sales by 3.8% to $45 million in the September quarter.


The figures (all in $NZ) represent 2 months of actual sales & September preliminaries, excluding accounting adjustments.


In both sale categories, the bigger gains were made in Australia & Canada.


New Zealand sales rose 2.4% – both all-store & same-store – to $15.5 million.


Australian sales rose 13.1% to $33.1 million, same-store 4.5% to $30.2 million. In local money the rise was 9.3%. Canadian sales rose 14.1% to $1.2 million, same-store 4.6% to $1.1 million.Michael Hill opened 4 new stores in Australia & 2 in Canada in the quarter. Chairman Michael Hill said the company would change its reporting practice form next quarter, incorporating the quarterly sales reports into the interim & preliminary full-year results announcements, but continuing to report first & 3rd quarter sales separately.


“As the 2nd quarter sales contain the all-important Christmas trading period, an announcement on sales alone without reference to profitability could result in misinterpretation by the market,” Mr Hill said.

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Michael Hill says 3rd-quarter trading flat

Michael Hill International Ltd said today 3rd-quarter trading in New Zealand was flat but growth in Australia & Canada boosted overall sales for the 9 months to March by 15%.


The preliminary sales figures for the 9 months are compared to final audited figures for last year.


Michael Hill said New Zealand same-store sales fell 0.9% to $62.8 million, but same-store sales in Australia rose 10.6% to $108.9 million.


All New Zealand sales were up 1.5% to $64.6 million, Australia 20.7% to $123.7 million & Canada 248.5% to $4.4 million. Across the whole company, the rise was 15.1% to $192.6 million.

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Michael Hill has another record year

Superstore trend succeeds

Michael Hill without Michael Hill, but the show goes on. The chairman of Michael Hill was absent from the annual result announcement yesterday of his company Michael Hill International because of a family bereavement, which made it altogether a lower-key occasion.

Group financial controller Wayne Butler doesn’t present with the same gusto as his chairman, but the results he and managing director Mike Purcell announced were strong enough.

The jewellery company continues to grow. In New Zealand the results are flattening, with slower expansion than in Australia, but the profit was again a record.

Sales rose 16% to $182 million ($157 million last year), the operating surplus before tax was up 14.5% to $15.5 million ($13.5 million) and after tax was up 13.3% to $9.9 million (8.8 million).

Earnings per share were 25.8c (22.8c), final dividend was up 25% to 7.5c (6c) and total dividend up 17% to 13.5c (11.5c).

The group got back to solid cashflows after a year where big inventory stocking cut net operating cashflows to $2.8 million. The $14.2 million this year allowed the company to fund all growth internally, with no increase in long-term debt. The equity ratio improved to 52% (50%).

Overall operating profit as a percentage of revenue fell slightly, from 10% to 9.8%, but the performances on each side of the Tasman showed more interesting trends.

In New Zealand, operating percentage as a percentage of steady revenue ($7 million last year, $7.1 million this year) fell from 12.4% to 11.3%, while in Australia it rose from 8.6% to 9% on a 23% revenue increase ($8.66 million to $10.7 million). Unallocated expenses cut the profit figures back to the group figure, $9.94 million.

Important face in property industry

Michael Hill is a retailer with an important face in the property industry: it takes minute spaces in malls but can still pay very high rent because of percentage of turnover payments, and the success of its first superstores shows that trend outside the malls and traditional shopping strips is one worth developing — lower rents, a different emphasis in the retailing and sound returns.

Although New Zealand and Australian consumers are recognised as different beasts with different appetites, Michael Hill believes that although the growth in the number of outlets in New Zealand will slow, returns can continue to rise.

Among the statistics Mr Butler pointed to was a comparison between jewellery markets: Australia, with 17 million people and a jewellery market of $A1.5 billion, achieved an average spend of $A88 a head a year; New Zealand, with 3.8 million people and a $150 million market, achieved $NZ40 a head and Britain, with 59 million people and a £2.7 billion market, achieved £45 ($NZ135) a head.

“It suggests we can get more out of the New Zealand market, and that’s been one of the rationalisations behind putting in superstores,” Mr Butler said.

In Australia, Michael Hill opened four stores and closed two during the year for a total 66 and estimated potential of 106 through growth in Victoria, Western Australia and South Australia, and limited growth in New South Wales. New shopping centre construction could help lift that total to 130 by 2007.

Of the closures, Mr Purcell said: “If we can’t get a store performing to our requirements, we close it. In Queensland there were two stores in close proximity which we trialled four years ago. One was successful, one was marginal. In Sydney, we closed a store in a centre that has been struggling for two or three years. It was sold by BT to Lend Lease and their focus was to make it a convenience centre form a regional shopping centre.”

Positive note to closures

In New Zealand, superstores opened at Albany, Mt Wellington and Westgate, the last of these replacing a conventional store nearby. Michael Hill opened its fourth superstore at Rotorua yesterday, also replacing a conventional store.

Two other features will distinguish the Michael Hill group — its success on both sides of the Tasman, unmatched by other New Zealand retailers and unmatched in an even more impressive way by Australians coming this way, and its infrastructure development.

“Australian retailers coming over here haven’t put in the infrastructure to back it,” said director Gary Gwynne, whose own Outback Heritage store chain has also been expanding in Australia.

Secondly, said Mr Purcell, “we’ve taken our warehousing system from big companies like Seiko in Japan and we should be able to structure better deals in the next 2-3 years with our suppliers.”

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Michael Hill warns of profit cut

NZ sales $1 million lower in November

Michael Hill International Ltd warned on Wednesday that its December half operating profit, excluding profit from selling its Australian head office, would fall 10% to $7.5 million.

The full result is due to be announced on Wednesday 26 February.

Including sale of the Australian building, total profit will be about $8.6 million. The $8.7 million profit in 2002 included $408,000 profit from selling the New Zealand head office building in Whangarei.

Michael Hill International said main contributors to the fall were:

The NZ dollar’s rise from 81c to 87c (6-month average rate) against the Australian dollar, which translated to $490,000 in the currency conversion.

The Canadian startup cost $500,000, and delays in opening the 3rd store contributed to the loss.

November sales in New Zealand were worth about $1 million less

International expansion raised infrastructure costs, including appointing group human resources & supply managers

Operating costs were higher in a number of areas in Australia.

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Michael Hill profit slips 1%

Same-store sales up 4.3%

Michael Hill International Ltd’s profit for the December half slipped 1% to $8.6 million although revenue rose 5.4% to $122 million.

The surplus before unusuals & tax fell 10.3% to just under $11 million. Earnings/share fell 0.1c to 22.4c/share.

The latest result was bolstered by an aftertax $1.1 million profit on the sale of Michael Hill’s Australian head office building.

Chairman Michael Hill said the stronger NZ dollar (up from a 6-month average of A81c to A87c) cost $494,000, the Canadian startup cost $496,000 after tax, November NZ sales were $1 million lower than expected, international expansion raised infrastructure costs, and Australian costs were higher in a number of areas.

Earnings before interest & tax rose 22.5% in the December 2001 half but fell 0.5% this time to $6.5 million. Ebit as a percentage of revenue fell from 15.4% to 14.3%. Same store sales for the six months increased by 4.3%.

Michael Hill now has 45 NZ stores after opening at The Palms in Christchurch in November and Papakura in December, 81 Australian stores & 2 in Canada.

The company will pay an unchanged fully imputed 7c/share dividend.

The company’s equity ratio is 43.9%.

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