Covid Headwinds To Weigh On Jewellery Retailer Michael Hill International: Citi

Michael Hill International

24/08/2021 24:05

** Citi Research retains "neutral" rating on jewellery
retailer  MHJ.AX , but cuts PT by 2% to A$0.90
    ** MHJ said on Monday its attributable net profit for FY21
rose nearly 15 times from a year earlier to A$45.3 mln, but that
it continues to face store closures due to regional lockdowns
 urn:newsml:reuters.com:*:nASX651bN1
    ** Citi says COVID-19 headwinds in Australia and New Zealand
overshadow MHJ's potential for further improvements from
initiatives and opportunities in existing and new markets
    ** Citi cuts MHJ's FY22 and FY23 NPAT estimates by 8% and
1%, respectively, to account for lockdowns and store closures
    ** However, Citi expects MHJ's 1H22 gross margins to benefit
from rising branded collection sales, greater online sales,
higher proportion of sales from loyalty members and fewer
discounts 
    ** MHJ stock up 25.4% this year, as of last close

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com;))