RAPAPORT... Michael Hill saw its earnings dive 90% in the last fiscal
year, due to costs relating to its exit from the US market and the closure of
its Emma & Roe brand.
The Australia-based jeweler reported profit of $3.4 million
(AUD 4.6 million) for the year that ended June 30, weighed down by a one-time
payment of $18.7 million (AUD 25.5 million) associated with closure costs.
Excluding those fees, profit fell 21% to $25.5 million (AUD 34.8 million), the
company reported Sunday.
“The period was one of recalibration and repositioning for
the group, which included the exit of the US and Emma & Roe businesses,”
said CEO Phil Taylor.
The company’s decision to close its US and Emma & Roe
businesses followed a strategic review, which shifts the focus to its three
remaining markets as well as building its online presence.
Group revenue rose 4.4% to $422.3 million (AUD 575.5
million), and same-store sales — at branches open more than one year —
edged up 0.4% to $386 million (AUD 526 million).
Revenue in Australia grew 1.2% to $239 million (AUD 325.7
million), while in New Zealand it increased 2.7% to $91.9 million (NZD 125.2
million). Canada was the company’s strongest performer, as revenue rose 16% to
$101 million (CAD 130.8 million). Meanwhile, e-commerce sales for the year
increased 57% to $7.6 million (AUD 10.3 million).
Michael Hill operated 312 stores at the end of the fiscal
year, including six remaining Emma & Roe stores, which it will close in the
coming months.
Image credit: Wpcpey
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