Michael Hill International, a New Zealand-based jewelry retailer, stated Monday margins contracted in Australia amid discounting to maintain sales growth.
Same-store sales in Australia, which makes up 68% of the retailer’s revenue, climbed 2.3% to A$44.7 million in the three months ended Sept. 30.
Sales growth was 4.1% in kiwi dollar terms. Michael Hill’s shares gained 1.4% to 72 cents and rose 39% this year.
Total sales for the company rose 6.3% to $84.6 million while sales open at least 12 months slipped 0.4% to $77.2 million, mainly reflecting a decline in revenue from Canada.
In New Zealand, Michael Hill’s margins fell on increased promotions and a pick-up in customers buying on credit.
Same-store sale rose 0.6% to $17.2 million.