Brisbane Australia-based jewellery retailer Michael Hill is seeing remarkable success with its Canadian operations. The company currently has 80 stores nationally, and it plans to operate about 100 locations towards the end of the decade.
Michael Hill’s newly released 2017 earnings report shows that its Canadian same store sales increased by 8.8% from last year to $94.2 million, outperforming the company’s overall growth of 1.6% internationally. Including new store openings, Canadian revenue was up 18.1% year-over-year, with 2017 sales of $112.7 million and a gross profit of 61.3%. The company opened nine Canadian stores over the past 12 months. Impressively, its Canadian operating profit was $12.6 million, an increase of 38% on last year.
“The Canadian segment continues to show strong growth as we achieve scale and market share across the country,” says the earnings report. “The Company is confident this trend will continue in the coming year as we open more stores and gain further brand recognition in existing markets.”
Michael Hill plans to open seven Canadian stores in the 2017/18 year, with a further seven for 2018/19, and four stores in 2019/20. Michael Hill’s North American President Brett Halliday confirmed that the company’s next three stores, opening in September and October of this year, will include locations at Conestoga Mall in Waterloo ON, at McAllister Place in Saint John NB, and at Regent Mall in Fredericton NB.
Michael Hill operates 332 stores: in Australia (166 stores), New Zealand (52 stores), Canada (76 stores) and The United States (9 locations). Sir Michael Hill and his wife, Christine, founded Michael Hill jewellers in New Zealand in 1979, and moved its headquarters to Australia in the late 1980’s. The family continues to maintain a 53% ownership stake in the company. The company’s first Canadian location opened at Lougheed Town Centre in Burnaby, BC in 2002.