Michael Hill Profit Slumps on US Exit

RAPAPORT... Michael Hill saw its earnings dive 90% in the last fiscalyear, due to costs relating to its exit from the US market and the closure ofits Emma & Roe brand. The Australia-based jeweler reported profit of $3.4 million(AUD 4.6 million) for the year that ended June 30, weighed down by a one-timepayment of $18.7 million (AUD 25.5 million) associated with closure costs.Excluding those fees, profit fell 21% to $25.5 million (AUD 34.8 million), thecompany reported Sunday. "The period was one of recalibration and repositioning forthe group, which included the exit of the US and Emma & Roe businesses,"said CEO Phil Taylor. The company's decision to close its US and Emma & Roebusinesses followed a strategic review, which shifts the focus to its threeremaining markets as well as building its online presence. Group revenue rose 4.4% to $422.3 million (AUD 575.5million), and same-store sales - at branches open more than one year -edged up 0.4% to $386 million (AUD 526 million). Revenue in Australia grew 1.2% to $239 million (AUD 325.7million), while in New Zealand it increased 2.7% to $91.9 million (NZD 125.2million). Canada was the company's strongest performer, as revenue rose 16% to$101 million (CAD 130.8 million). Meanwhile, e-commerce sales for the yearincreased 57% to $7.6 million (AUD 10.3 million). Michael Hill operated 312 stores at the end of the fiscalyear, including six remaining Emma & Roe stores, which it will close in thecoming months.