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

 

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news