The jeweler hopes to open as many as 400 U.S. stores
Michael Hill’s U.S. comps rose 3.5 percent in its latest fiscal year, falling short of both expectation and budgets, the company said.
Overall revenue from the 10 stores totaled $14 million. But the company posted an EBIT loss of $2.3 million, higher than last year’s $1.9 million.
“A renewed focus on growing top line sales is needed to bring this test group of stores to a level that would justify further store openings,” a company presentation said.
Still, the company stressed that it is committed to this market—and eventually hopes to open as many as 400 U.S. stores.
A statement said the U.S. division is focused on developing proprietary bridal and fashion collections, new marketing initiatives, a competitive in-house credit program, and establishing the brand in strong malls.
The company currently has plans to open three U.S. stores in 2017–2018 and five stores in 2018–2019.
The company’s overall comps rose 5.2 percent, and its revenue rose 9.5 percent to $551 million. In addition to the United States, the company operates in Canada, New Zealand, and its home base of Australia.
JCK looked at Michael Hill’s U.S. stores earlier this month, following the resignation of longtime CEO Mike Parsell. Its interim CEO says that the company still “sees the U.S. as an exciting growth opportunity.”
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