Revenue Drops at Michael Hill

RAPAPORT... Michael Hill's sales fell 0.8% in its third fiscal quarter,even as strategic changes drove an improvement in March, the company said. Group revenue slipped to AUD 117.6 million ($84.2 million)in the three months ending March 31, the jeweler reported Wednesday. During thefirst two months of the period, the company was in a transition period as it shifted to a new marketing strategy. It also faced challenging conditions in Australia, its largestmarket. Same-store sales - at branches open for at least a year - slid 1.5%during the third quarter. However, sales improved in March, as the effects of the consumer-driven strategy were fully realized. The initiative focuseson aligning the company's merchandise with its customers' needs, as well asrestructuring its marketing to move away from continual discounting. In line with this new approach, the company launcheda proprietary line in March, the Southern Star diamond collection, itnoted. "The company's performance continued to stabilize during thequarter, as refinements to the strategy improved our position from the firsthalf, further regaining ground lost in the first quarter," said Michael HillCEO Daniel Bracken. Same-store sales in Australia declined by 3.4% to AUD 61.9million ($44.3 million), while those in New Zealand dropped 6.3% to NZD 24.7million ($16.7 million). Same-store sales in Canada rose 0.1% to CAD 23.6million ($17.7 million). Total group revenue for the first nine months of the fiscal yearfell 3.2% to AUD 427.2 million ($306 million), while same-store sales for theperiod decreased by 4.8% to AUD 401.4 million ($287.6 million). The group opened one new store during the period, and closedfive, bringing the total number to 307 on March 31. Image: A Michael Hill store in Melbourne, Australia. (Wpcpey)