Michael Hill International Ltd (ASX: MHJ) is a jewellery chain with more than 300 stores across Australia, New Zealand, Canada and the US, also encompassing the Emma & Roe brand.
Pre-tax earnings for the 6 months to December 17 are expected to be around $15 million when Michael Hill releases its half year results on February 22 – a landslide drop of 62.5%% from the 6 months to December 2016 EBIT of $40 million.
Michael Hill's US exit coincides with plans to reposition the flailing Emma & Roe brand with attempts to move the product line online.
The company has called the changes a "cut your losses" move, with Michael Hill's US stores and Emma & Roe shopfronts booking a combined loss of $12 million in the last financial year.
Michael Hill executives hope the repositioning will free up resources to help the jewellery stalwart's share price get back on the incline.
