19 Feb 2011

Tough times ahead for Michael Hill

7:15 am on 19 February 2011

Jewellery retailer Michael Hill International says it is likely to face tough trading conditions in New Zealand and Australia.

The listed company made $23.9 million in the six months to December, an increase of 7% on the same period a year ago.

Michael Hill International says overall it did well over the period but sales in New Zealand have been challenging since Christmas.

Chief executive Mike Parsell says traumatic weather events in Australia have slowed consumer demand there, particularly in Queensland.

He says the environment has been very competitive and many retailers have been discounting to keep their sales volumes up.