Listed jeweller Michael Hill International reported flat same-store sales for the six months ended December but encouraging growth across all stores following the opening of 16 new stories in the period.
Same-store sales were up 1% to $307 million from $303.9 million, the company reported to the NZX. Total store sales rose 5.7% to $328.1 million from $310.5 million.
Chief financial officer and acting chief executive Phil Taylor said the group continued to grow same-store sales, expand its store footprint for both the Michael Hill and Emma & Roe brands and maintain solid gross margins.
Trading for the half ended on a solid note. December's same-store sales were up 2.5% for the month.
``This was achieved against a backdrop of choppy macro conditions in our various geographic markets and higher-than-usual competitor discounting in Australia and Canada.''
The Michael Hill brand in Canada continued to impress, having strong same-store sales growth and, when combined with five new store openings, would place the business in a sound position to lift earnings margin growth, he said.
``New Zealand had a tough half this year after a strong performance last year. But the business remains in good shape with an experienced and high-performing management team in place.''
Australia likewise had a bumpy half but was positioned to perform solidly in the second half, Mr Taylor said.
Craigs Investment Partners broker Chris Timms said New Zealand and Australia were tough environments for retailers.
``There is a lot of competition and tensions on pricing challenges retailers don't get right 100% of the time.''
Mr Taylor said the United States business would require some extra focus in the second half to correct its results and the effort would be led by North American president Brett Halliday who had run the Canadian segment.
The Emma & Roe brand continued to grow in Australia and reached 24 stores at the end of the half. While same-store sales were flat for the half, the group had secured and opened some new store locations in both Queensland and New South Wales.
That would allow Emma & Roe to increase its marketing spend in the coming 12 months as critical mass was achieved in each advertising region, Mr Taylor said.
Michael Hill shares last traded at $1.32, up 1c.
