Michael Hill International has blamed Australia’s “tight”‘ market conditions for a lack fo growth in its ‘same store’ sales for the six months ending March 31.
In the company’s most recent trading update, chairman Michael Hill said third quarter sales were satisfactory in New Zealand, Canada and the US but the Australian market “continued to be difficult for the Group due to the ongoing tight retail conditions”.
“This sluggishness in the Australian market has resulted in our Group’s ‘same store’ sales being flat for the nine months, however the directors are pleased with the solid growth achieved in the other three markets.”
‘Same store’ sales in Australia fell 2.7 per cent from $NZ246.3m to $NZ239.5m for the six months ending March 31 this year compared with the same period in 2011.
The company’s ‘same store’ sales in the US, New Zealand and Canada increased 10.2 percent to reach $NZ8.8m, 8.9 percent to reach $NZ81.8m and 0.8 per cent respectively to reach $NZ34.5m in the same period.
The company also reported that overall sales increased 5.1 percent year-on-year to reach $NZ391.3m in the six months ending March 31 this year.
Total sales in Australia grew 2.6 percent to reach $NZ257.2m during the same period while sales in Canada increased by 15.7 percent to reach $NZ41.9m, the US increased by 11 percent to reach $NZ8.9m and sales in New Zealand increased by 7.9 percent to reach $NZ83.7m.