Michael Hill Sees Improved Holiday Sales

RAPAPORT... Michael Hill's sales rose during the holiday period, buoyed bya shift in the company's marketing strategy, it said Tuesday. The jeweler's same-store sales - at branches open for at least a year- increased 1.3% year on year during the November-to-December period,but decreased 2.9% for the second fiscal quarter overall. Although salesfell, performance improved significantly compared to the first quarter, whichsaw an 11% drop. The retailer underestimated how much marketing it needed forits strategic shift away from discounting, leading to a sharp decline lastquarter, it said. In the three months ending December 31, it made a series ofchanges to its marketing activities and event promotions, resulting in astronger performance. In the second quarter, sales at all stores in Australia, thejeweler's largest market, fell 4.6% to AUD 106.9 million ($76.9 million). Revenuein New Zealand slipped 4.8% to NZD 41.8 million ($28.5 million), while proceedsfrom Canadian branches rose 4.5% to CAD 49 million ($37 million).For the first fiscal half, same-store sales fell 6% to AUD 292.7 million ($210.6million). Michael Hill closed three stores during the first half, andopened another six, for a total of 309 stores. The company also shut four Emma& Roe branches, leaving two stores still operating. The company is implementing a strategy to become a globallyrelevant leader in the premium-jewelry category, it said. To this end, it hiredDaniel Bracken as CEO in September, and last week appointed Andrea Slingsby aschief operating officer. Image: A Michael Hill store in Melbourne, Australia. (Wpcpey)