Michael Hill’s sales fell a hefty 8.5 percent at its nine U.S stores over the last fiscal year, as its American operation “struggled to gain traction,” the company said in a presentation of its annual results.
Revenue at the U.S. stores dropped 12 percent to $12.5 million.
The company closed one store in Columbus, Ohio, for poor performance. It also wrote down its store in the Roosevelt Field mall in Garden City, N.Y., due to an “onerous lease provision.”
The company “continue[s] to monitor the U.S. business as this is a potentially lucrative market…if we can develop a viable market,” it said a company statement, adding that, in September 2016, Brett Halliday, head of Michael Hill’s Canadian division, took over the U.S. division.
The group, which also has stores in Australia, New Zealand, and Canada, had better luck elsewhere. Its overall comps for the year rose 1.6 percent, with revenue increasing 5.8 percent to $583 million.