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Michael Hill Profit +66% To $25.9M Despite Higher US Losses

Michael Hill International Ltd. the retail jewellery brand headquartered in Brisbane, Australia, with a footprint in the United States, Canada, Australia and New Zealand, posted a 66 percent increase in annual profit for the year ended June 30 to $25.9 million (A$32.6 million) on revenue of $462.3 million (A$583 million).

The company had reported a profit of $15.5 million (A$19.6 million) a year earlier.

Michael Hill said the higher profit was a result of a steady growth of its chain in Australia and New Zealand and higher revenue growth in Canada. It reported higher losses in the US market, which also features its new Emma & Roe chain.

The company opened 26 new stores during the year — 13 each for the Michael Hill and Emma and Roe brands. It also closed seven stores and its retail door count now stands at 332.

The Emma & Roe brand, which sells charm bracelets and accessories, actually showed a 62 percent  increase in revenue to $12 million (A$15.1 million), but much of this was due to the opening of 13 new stores, giving it a total of 29 retail doors. Same-store sales dropped 2.1 percent to $5.7 million (A$7.2 million) and an 89 percent increase in expenses to $13.4 million (A$16.9 million) caused an increase in the brand’s pre-tax losses to $5.5 million (A$6.9 million) from $1.9 million (A$2.4 million) the previous year.

The company said the Emma & Roe model was being reviewed with inputs from customer responses and inputs.

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