Michael Hill (ASX:MHJ) share price rockets 13% to a 52-week high. Here’s why

What’s pushing the jeweller’s shares higher?
The post Michael Hill (ASX:MHJ) share price rockets 13% to a 52-week high. Here’s why appeared first on The Motley Fool Australia. –

The Michael Hill International Ltd (ASX: MHJ) share price is storming to a fresh 52-week high today. The company provided investors with a trading update following an early indication of performance for the half-year of FY22.

At the time of writing, the specialist retail jewellery chain’s shares are up 13.22% to $1.285 apiece. In contrast, the All Ordinaries (ASX: XAO) is travelling 1.03% higher to 7,824.2 points.

How is Michael Hill performing for H1 FY22?

Investors are driving up the Michael Hill share price after the company revealed a positive business update despite COVID-19 challenges.

According to its announcement, Michael Hill advised it has delivered sales growth and sustained margin exposure throughout November and December. This comes after management navigated the business through extended periods of store closures across Australia and New Zealand from July to November.

Regardless of the rise in COVID-19 cases around the globe, all stores were open during the critical Christmas trading period.

The company has a total of 285 stores across all markets in Australia, New Zealand, and Canada.

Michael Hill anticipates the strong performance to exceed its first-half expectations, particularly against earnings before interest and tax (EBIT). Previously, the company achieved EBIT for H1 FY21 of $44.6 million.

While its second-quarter trading update will be released on 14 January, all eyes will be on its key operating metrics.

Furthermore, the company’s first half of the FY22 financial results will be delivered on 23 February 2022.

Michael Hill share price snapshot

In the past 12 months, Michael Hill shares have boasted a gain of more than 92% from continued positive investor sentiment. The company’s share price charged higher since October following a sound first-quarter trading update for FY22.

Based on today’s price, Michael Hill commands a market capitalisation of around $500 million, with roughly 388.29 million shares outstanding.

The post Michael Hill (ASX:MHJ) share price rockets 13% to a 52-week high. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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