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Michael Hill to Close All US Stores

Company could not find a buyer for unprofitable assets.
Apr 15, 2018 4:34 AM   By Rapaport News
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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
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