Michael Hill plans to open at least 10 new jewellery stores this year as it looks to kickstart performance after full-year profit fell 86 per cent on restructuring costs.
The one-off costs of exiting the US and closing most of its ailing Emma and Roe stores dragged down Michael Hill’s net profit to $4.6 million for the year to June 30, from $32.6 million a year earlier.
However, the firm plans to open a minimum of 10 Michael Hill-branded stores in Australia, New Zealand and Canada in the current financial year.
Michael Hill on Monday said a strategic review had also resulted in a decision to grow online operations, build customer data and focus on branded collections.
The company is aiming to build the strength of its core Michael Hill brand.
“FY19 is viewed as a foundational year with the benefits of the strategy to be progressively realised over time,” Michael Hill said in a statement.
The ASX- and NZX-listed company reported $25.5 million in closure costs for the US and Emma & Roe, along with a deterioration in performance across those segments once the closures were announced in January.
Excluding these businesses and exit costs, Michael Hill reported net profit of $34.8 million – a 21 per cent decline.
BY 1035 AEST, Michael Hill shares were down 3.5 per cent to 96.5 cents in a weak Australian market.
MICHAEL HILL FY PROFIT SLUMPS
* Net profit down 86pct to $4.6m
* Final dividend flat at 2.5 cents per share, unfranked.