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michael hill . INTERNATIONAL LIMITED ASX AND NZX ANNOUNCEMENT CONTINUED STRONG PERFORMANCE DELIVERING MATERIAL PROFIT GROWTH Second Quarter Business Update 14 January 2021 Michael Hill International Limited ( ASX / NZX : MHJ ) is pleased to provide a business update , together with its second quarter trading update for the period ended 27 December 2020 . For personal use only KEY POINTS • • • • • • • Significant EBIT growth - The Company expects FY21H1 Group EBIT¹ of $ 56m to $ 60m , with comparable EBIT² for the half of $ 41m to $ 45m ( FY20H1 : $ 31.6m ) , representing 30 % - 40 % EBIT growth . Solid growth in same store sales in all markets and channels - Same store sales were up 6.3 % for the half and up 5.6 % for the quarter against prior year , with an outstanding performance in Australia . Sustained margin improvement – Margin growth in all markets and channels of 150 to 250 bps for the half against prior year , underpinned by the strategic initiatives implemented over the last eighteen months . Growth maintained in digital sales - For the half , online sales were up 102 % , with digital initiatives continuing to deliver increased sales and margin across all markets . Digital channels now represent 5.8 % of total sales ( FY20H1 : 2.8 % ) . Continued growth of branded collections - Branded collections represented 38.4 % of total product sales for the half ( FY20H1 : 35.4 % ) . Strong balance sheet and ongoing disciplined cost focus - Diligent management of all expenditure , working capital , inventory levels and a sustained , deliberate focus on CODB delivered a significant cash position at half year end . Canadian segment impacted by temporary store closures – In accordance with COVID - 19 government directives , 21 stores progressively closed through November and December , and a further 25 stores closed from Boxing Day . Store portfolio management - No stores permanently closed or opened in the quarter , with a network total of 289 stores across all markets at the end of the half ( FY20H1 : 304 ) . Global Store Network Update In relation to temporary store closures in each market : Australia : During the quarter , 28 Melbourne stores reopened in late October and saw a strong return to trade . In addition , 8 South Australian and 1 New South Wales store closed for a short period of time . All 154 Australian stores were trading at the end of the quarter ( FY20Q2 : 165 ) . New Zealand : None of the 49 stores were temporarily closed for the quarter ( FY20Q2 : 52 ) . Canada : Of the 86 stores , 21 stores progressively closed through November and December , and a further 25 stores closed from Boxing Day , with 40 stores trading at the end of the quarter ( FY20Q2 : 87 ) . It should be noted that during temporary store closures , a number of initiatives have been successfully deployed ( virtual selling , click & reserve , contactless pick - up and ship from store ) and leveraged to maximise sales opportunities .