MENU

More pain no gain for Michael Hill International Ltd

Jewellery retailer Michael Hill International Ltd (ASX: MHJ) will wear the $6 million cost of its exodus from the U.S. market after failing to find a buyer for the business.

The exit will include lease exit terms and staff redundancies as the flailing retailer closes 9 US stores by the end of this month as a means to free up resources for better-performing portfolios such as Canada.

Michael Hill’s US revenues slipped 17.7% for the 9 months to March 31 although group sales were up 4.9% while the company booked growth across Australia, New Zealand and Canada – albeit subdued.

Michael Hill has been struggling along for some time in the consistently volatile discretionary spending retail space, while sector darling Premier Investments Limited (ASX: PMV) has managed to log gains off the back of its Smiggle and Peter Alexander brands despite being down 0.6% at the time of writing to $15.75.

Share prices are down across the electronics space today too, with Harvey Norman Holdings Limited (ASX: HVN) down 1.6% to $3.34 and JB Hi-Fi Limited (ASX: JBH) also down 0.4% to $25.89.

Japanese Billionaire’s Prediction Will Give You Goosebumps

When a veritable investing and entrepreneurial genius speaks, it pays to listen.

In fact, he's now preparing a $100B "war chest" to invest entirely in this "terrifying" new technology, which could spell huge profits for investors.

Click here to learn about this technology and how you can profit!

The Richest Man Alive Invests in This

The richest man in the world has just launched a $100 million investment fund and investors who don't take note could miss out on a massive opportunity.

And it isn't by sheer luck. He did it by looking to the future and investing in the big ideas of tomorrow.

This could be your chance to get in on the ground floor!

Click here to discover more!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.