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For personal use only michael hill . INTERNATIONAL LIMITED ASX AND NZX ANNOUNCEMENT CONTINUED STRONG PERFORMANCE DESPITE IMPACT OF ONGOING LOCKDOWNS Trading Update 12 October 2021 Michael Hill International Limited ( ASX / NZX : MHJ ) is pleased to provide its quarterly trading update for the 13 week period ended 26 September 2021 . KEY POINTS Strong same store sales in all markets - Same store sales for the quarter were up an impressive 15.5 % , against FY21Q1 . Continued margin expansion – Strategic initiatives underpinned margin growth of 100 to 200 bps in all markets and channels against FY21Q1 . Digital sales surge ( FY21Q1 : 5.3 % ) . For the quarter , digital sales were up 58.2 % against FY21Q1 , representing 9.4 % of sales Lost store trading days impact – The quarter saw 7,396 lost store trading days across all markets vs 2,158 in the same period last year , representing a net loss of 20 % of Q1 trading days against prior year . Despite this , all store sales were only down 10 % for the quarter against FY21Q1 . Earnings impact well managed - A combination of increased margins , focused cost control , digital growth and strong same store sales , has lessened the negative impact on earnings from the lockdowns . Global Store Network Update During the quarter , there were no store openings or closures and the network remained at 285 stores ( FY21Q1 : 289 ) . In relation to performance by market and temporary store closures : Australia : For the quarter , same store sales were up 9.4 % and all store sales were down 24.9 % . For the majority of the quarter , 71 stores were temporarily closed , representing a significant loss of 5,931 store trading days . At quarter end , of the 150 Australian stores ( FY21Q1 : 154 ) , 38 NSW , 29 VIC and 4 ACT stores were temporarily closed . From 11 October 2021 , NSW stores have been progressively reopening . New Zealand : For the quarter , same store sales were up 17.8 % and all store sales were down 13.2 % . The mandated lockdowns spanning five weeks of the quarter , resulted in a loss of 1,333 store trading days . At quarter end , of the 49 New Zealand stores , 16 Auckland stores were temporarily closed . Canada : For the quarter , same store sales were up 17.7 % and all store sales were up 18.8 % . By early July , all 86 Canadian stores were open and trading , with only 132 store trading days lost for the quarter . Commenting on the result , Michael Hill International Limited , Managing Director and CEO Daniel Bracken said : " I'm particularly pleased with our results , having delivered double digit same stores sales growth together with continued margin improvement for the quarter - marking our ninth quarter of positive same stores sales growth since FY19Q3 . These results reaffirm our transformational agenda is enhancing all aspects of our business , broadening our omni - channel offering , elevating our brand and delivering growth . " Our strategic initiatives - driving elevated margins , an intense focus on costs , and strong digital and physical sales , have all combined to lessen the negative impact on earnings from sustained store closures across Australia and New Zealand . " Upon reopening , our Canadian business has been flying , delivering impressive sales and margin growth every week . This demonstrates that as territories reopen , the business is ready to meet the strong consumer demand , with the right inventory , engaged team members and appropriate safety protocols in place . We are looking forward to the progressive reopening of our NSW , VIC and Auckland stores , in readiness for the all - important trading period . "