First-quarter trading has revealed the company's strategies are gaining momentum, with Citi noting the business has stabilised. The broker expects Michael Hill will focus on improving Canadian sales productivity and expanded its product range.
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.
Instead of reducing Emma & Roe to 6 stores the company will now abandon the brand and focus on its core. Macquarie has identified a value gap between the current share price and its valuation of the core business.