Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Michael Hill says Christmas trading missed forecasts

Michael Hill says Christmas trading missed forecasts, 1H earnings to be $34M to $36M

Jan. 11 (BusinessDesk) – Michael Hill International, the jewellery chain that bears its founder’s name, said sales growth stalled in the second quarter, which limited earnings growth in the first half of the year.

“December quarter sales, including the critical Christmas trading period, fell short of our forecasts and didn’t deliver the improvement over last year that the company had expected,” the Brisbane-based company said in a statement.

Earnings before interest and tax in the six months ended Dec. 31 were in a range of $34 million to $36 million, from $34.8 million a year earlier, it said.

In its annual report published in September, chief executive Mike Parsell said the chain was seeking an increase in same-store sales and ebit in the 2012/13 financial year, especially in Australia.

Michael Hill is the first NZX 50 company to give an earnings update ahead of the results season that kicks in next month and investors are waiting to see whether more companies give guidance ahead of their results.

“Most companies are going to be cautious in terms of their outlook statements,” said Shane Solly, portfolio manager at Mint Asset Management. “February is going to be pretty interesting.”

Despite the weaker-than-expected second quarter, Michael Hill’s sales for the first half rose 8.8 percent to $312.8 million, led by growth in its biggest market of Australia, up 9 percent to $206.7 million. Sales in New Zealand rose 3.7 percent to $63 million, Canadian sales rose 19.4 percent to $36 million and US sales rose 0.8 percent to $6.7 million.

On a same-store basis, sales rose 2.6 percent to $287.7 million, with Australian sales on that basis up 2.6 percent and New Zealand up 3.1 percent.

“All four markets struggled to gain traction over last year’s sales in the second quarter” though they achieved “solid” same-store sales growth, it said.

Shares of Michael Hill last traded at $1.25 and have advanced 43 percent in the past year. They are rated ‘outperform’ based on two recommendations compiled by Reuters.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news