Michael Hill International Ltd [NZX:MHJ] has seen a fall of over 2% on the New Zealand Stock Exchange as trading closed yesterday.
Michael Hill is Australasia’s leading retailer of jewellery. Originally founded in Whangarei, it is now headquartered in Brisbane. It boasts a strong presence throughout Australia, New Zealand and Canada.
Michael Hill has a market capitalisation of $232 million, and the share price is currently sitting at $0.60.
Why has the Michael Hill share price fallen?
Michael Hill’s downward slide could be the result of continuing negative fallout from their decision to exit the US market in April 2018.
In comparison to its success in Australia, New Zealand and Canada, Michael Hill’s presence in America has floundered. This has forced the company to liquidate its American assets, which sadly marks the end of a 10-year journey to gain a foothold in the USA.
This negativity has been compounded by fresh jitters today about the company as they announced the appointment of Andrea Slingsby as the new chief operating officer. This comes on the back of a new chief executive — Daniel Bracken — who only joined Michael Hill in November 2018.
Where can [NZX: MHJ] go from here?
Uncertainty about the company’s management reshuffle is impacting the overall sentiment at the moment. Investors are very much in a holding pattern; adopting a wait-and-see attitude.
However, once the overall mood stabilises, investors will realise that Michael Hill’s fundamentals are still solid. The company’s share price may reverse its negative trend in the middle- to long-term.
Editor, Money Morning New Zealand