News

Advanced Search

Michael Hill to Close All US Stores

Apr 15, 2018 4:34 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... Michael Hill will close all its US stores by April 30 and pull out of the American market entirely, the company said.

In January, the retailer announced it was looking for a buyer for the nine stores it operates in the US, noting the outlets were consistently losing money. However, the jeweler has not been able to find a purchaser, it said last week. The brand estimated the cost of the closure at around $4.5 million.

Michael Hill has been struggling with a challenging market. In the nine months ending March 31, US revenue fell 15% to $8 million, with same-store sales in the US declining 11%.

The company’s global business has performed better than the US segment, with group sales rising 4.5% to $333.4 million (AUD 429.3 million) for the period. Sales in Australia increased 1.7% to $196.2 million (AUD 252.7 million), while revenue in New Zealand grew 4.3% to $71.3 million (NZD 96.9 million). Sales in Canada jumped 17% to $77.9 million (CAD 98.2 million), outweighing the weaker US performance.

Same-store sales — those at branches open for at least a year — grew 1%, excluding the US. In New Zealand, sales by that measure climbed 3.7%, while Canadian sales jumped 4.1%.

Same-store sales in Australia, the company’s largest market, fell 0.3% to $184.9 million (AUD 238.1 million). During the nine-month period, Michael Hill opened six new stores in the country.

Image: Wpcpey
Tags: Australia, Canada, jeweler, Jewelry, Michael Hill, New Zealand, Rapaport News, retail, US
Similar Articles
DamianiRetail Division Drives Damiani Results
Jul 10, 2018
Sales rose at Italian jeweler Damiani Group during the past fiscal year as retail growth offset
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2018 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.