Michael Hill exited the US as part of a broad plan to restructure the business. Photo/File.
Shares in Michael Hill have lost nearly a quarter of their value today after the retailer's quarterly sales dropped 8.8 per cent.
The jewellery chain's share price closed for the day down 24.49 per cent at 74c each.
Michael Hill's sales from continuing operations fell to A$112.12 million in the
three months ended September 30 from A$122.9 million a year earlier. Same-store sales posted a sharper decline of 11 per cent.
The retailer restructured its business this year, quitting the US and exiting its Emma & Roe sub-brand to focus on high-margin sales and improving its use of other sales channels, such as online. Gross margin improved in the quarter to 64.6 per cent from 63.1 per cent. Chief executive Phil Taylor said that strategy is still the right one, however, the move away from discounting needed more spending on marketing and advertising.
"While the transition is proving more challenging than expected we remain committed to the strategy and have taken many learnings from the first quarter which we are confident will drive performance in the critical December quarter," he said in a statement.
