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

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news