Michael Hill International has delivered a weaker trading update versus Credit Suisse expectations. Australia, among the company’s key markets, was the only one to report a sequential improvement in same-store sales trends for the nine months to March.
The broker points out first half trading is critical as it typically generates 70-80% of the full year earnings (EBIT). Reflecting changes to forecasts, the broker reduces the target to NZ$0.90 from NZ$0.97. Outperform maintained.
Sector: Consumer Durables & Apparel.
Current Price is $0.62. Target price not assessed.
