Michael Hill International has more than doubled first-half profit to $19.5 million after what the jewellery chain's chair called "a series of challenging but necessary changes" that included store closures.
Profit for the six months to December 31 rose from $8.7 million in the prior corresponding period, when the company was hit by the cost of exiting the US and closing its Emma & Roe chain.
Total revenue from ordinary activities slipped 2.7 per cent to $315.4 million after the company shifted its strategy away from discounting.
The company said the shift hurt its Australian segment the most, with the changes to discounting contributing to a 5.1 per cent fall in the nation's total revenue to $175.5 million.
"The company made a series of challenging but necessary changes over the past year, as it transitioned to a new strategy focused on the core Michael Hill brand and long-term sustainable growth," chair Emma Hill said in a statement on Wednesday.
"A more integrated approach to our promotional and sales activities was made ahead of the Christmas trading period, which resulted in a strong turnaround in sales momentum across November and December, but not at a sufficient level to offset the lower trading volumes experienced in the four months prior."
MICHAEL HILL SLIMS DOWN AND RETURNS PROFIT
* Net profit up to $19.531m
* Revenue down 2.7pct to $315.445m
* Interim dividend of 2.5 cents per share, unfranked
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