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For personal use only michael hill . INTERNATIONAL LIMITED ASX AND NZX ANNOUNCEMENT TRANSFORMATION CONTINUES TO DELIVER Third Quarter Trading Update 14 April 2021 Michael Hill International Limited ( ASX / NZX : MHJ ) is pleased to provide its third quarter trading update for the period ended 28 March 2021 . KEY POINTS • Significant growth in sales for all markets and channels - FY21Q3 same store sales were up 16.4 % , with all store sales up 11.6 % for the quarter against prior year . For the first nine weeks of FY21Q3 , same store sales up 12.4 % against prior year and when comparing to FY19 same store sales up 10.6 % for the quarter . • Strong margin improvement continues - Group margin increased more than 200 bps for the quarter compared to prior year , with all markets delivering strong results , underpinned by the ongoing focus on margin enhancing strategic initiatives . • Digital sales remain elevated – For the quarter , online sales were up 69.2 % against FY20Q3 , and up 93.3 % year to date . Digital channels represent 5.6 % of total sales year to date compared to 2.9 % last year . • Brilliance by Michael Hill - Loyalty program now exceeds 600,000 members . Store portfolio management – One under - performing store permanently closed in Australia during the quarter , with a network total of 288 stores across all markets at the end of the half ( FY20Q3 : 301 ) . Global Store Network - COVID - 19 Temporary Store Closure Update Australia : During the quarter , 14 Queensland , 36 Victorian , and 22 Western Australian stores closed for a short period , with a total of 332 lost store trading days . All 153 Australian stores were trading at the end of the quarter ( FY20Q3 : 162 ) . New Zealand : For the quarter , 16 Auckland stores were temporarily closed twice for a total of 10 days , resulting in 160 lost store trading days . All 49 New Zealand stores were trading at the end of the quarter ( FY20Q3 : 52 ) . Canada : The quarter started with 46 temporarily closed Canadian stores , which all progressively reopened throughout the quarter , representing a significant loss of 2,364 store trading days . At the end of the quarter , all 86 stores were trading ( FY20Q3 : 87 ) . In respect of FY21Q4 , it should be noted that in early April , due to local government lockdowns , 41 Ontario stores have been temporarily closed and 14 Queensland stores were also closed for three days . Update on New Financing Arrangements At quarter end , the Group had a positive cash position in excess of $ 50m and nil drawn debt . The Group is pleased to advise it has entered into a new financing facility , jointly funded by its long term banking partner ANZ , and with the introduction of a new lender , HSBC . This new $ 70m facility is currently undrawn , with a term to February 2024 . Commenting on the result , Michael Hill International Limited , CEO Daniel Bracken said : " I'm delighted by these results , delivering further margin improvement and double - digit sales growth in all markets . Our strategic growth agenda underpins this performance as we accelerate digital innovation , embrace new ways to shop and elevate our brand . " Considering the ongoing challenges of navigating COVID - 19 , particularly in Canada , this result demonstrates the resilience of the Michael Hill business and further validates our transformation to a modern , differentiated , omni - channel jewellery brand . " I've never been more confident in our leadership team , and with a clear plan for growth , we are well - placed for continued strong results despite the uncertain environment . "