The Michael Hill International Limited (ASX: MHJ) share price is on watch this morning after positive news from the jeweller. The company released its quarterly update, which highlighted growth in sales and an improved cash position.
The Michael Hill share price might be in for another good day, following its unexplained 10% gain yesterday. It closed yesterday's trading at a healthy 79 cents.
Let's take a closer look at today's news from the company.
Sales increases
Michael Hill's news this morning included a "significant" increase in sales over the last quarter.
Its same-store sales were up 16.4% over the last quarter when compared to the same quarter last year. Same-store sales is a metric used to compare the performance of stores that have been open for at least a year.
All store sales are also up by 11.6% compared to the previous corresponding quarter.
Online sales have also increased for the retailer – up 69.2% when compared to the same quarter in 2020.
Even more impressive, year-to-date Michael Hill's online sales are up 93.3%.
Strong cash position
Today, the jeweller outlined its positive cash position. According to its release, it currently has more than $50 million in cash and no debt.
This quarter, it entered into a new $70 financing facility, jointly funded by Australia and New Zealand Banking Group Limited (ASX: ANZ) and HSBC Bank Australia.
Michael Hill has until February 2024 to choose to draw on this financing.
Other updates from the company
Its increase in sales and good cash position weren't the only news Michael Hill shared today.
In less positive news, the jeweller is still battling lockdowns and store closures due to the coronavirus pandemic.
Over the course of the quarter, stores that were closed for short periods included 14 in Queensland, 36 Victorian, 22 Western Australian, and 16 in Auckland. The company lost a total of 492 store trading days in Australia and New Zealand.
The situation for the company's Canada-based stores has been even more challenging. 46 Canadian stores began the quarter temporarily closed. They all progressively reopened throughout the quarter, but the closures saw Michael Hill lose 2,364 store trading days.
In Australia, 1 underperforming store was permanently closed over the quarter. There are now 288 Michael Hill stores globally.
On a more positive note, this quarter the jeweller's loyalty program, Brilliance by Michael Hill, reached 600,000 members.
Commentary from management
Michael Hill CEO Daniel Bracken said he was delighted by the results.
Our strategic growth agenda underpins this performance as we accelerate digital innovation, embrace new ways to shop and elevate our brand.
Considering the ongoing challenges of navigating COVID-19, particularly in Canada, this result demonstrates the resilience of the Michael Hill business and further validates our transformation to a modern, differentiated, omni-channel jewellery brand.
I've never been more confident in our leadership team, and with a clear plan for growth, we are well-placed for continued strong results despite the uncertain environment.
Michael Hill share price snapshot
The Michael Hill share price has been flourishing on the ASX lately, and today's news has the potential to boost it higher.
Over the last 5 trading days, the jewellers share price has grown 21%.
Year-to-date, it's up by 12%. It's also up by 118% since this time last year.
Michael Hill has a market capitalisation of around $304 million, with approximately 387 million shares outstanding.
