16 Aug 2013

Sales increase helps push up Michael Hill profit

1:44 pm on 16 August 2013

Michael Hill has lifted its full year profit by nearly 10 per cent, thanks to increased sales in all its markets.

The jeweller, which has more than 250 stores in New Zealand, Australia and North America, made an after-tax profit for the 12 months to June of $40 million, an increase of 9.6%.

In New Zealand, sales at stores open for at least a year continued to grow, albeit at a much slower pace than last year. Despite this, revenues increased 2% to $111 million.

Michael Hill had better luck across the Tasman, increasing sales by 4%, reversing a 2% slide last year.

Things are also looking brighter in the United States, where the jeweller has been struggling to make its mark for the last five years.

Sales rose 6%, lifting revenues by 7% to $US10 million.

Sales of extended warranties nearly tripled in value this year, contributing $16 million to total revenues.

Michael Hill will pay a higher dividend of 4 cents a share.