- Michael Hill International (MHJ) is closing its Canadian stores for two weeks, due to the increasing impact of COVID-19
- The Canadian government has advised all businesses to limit operations, in a bid slow the spread of the virus
- The company is also implementing a crisis plan for its Australian and New Zealand operations
- As a result of the ongoing pandemic, the company has noted a steep decline in foot traffic at its retail stores
- Shares in Michael Hill have slumped 6.67 per cent on the ASX today, trading for 28 cents apiece
Jewellery retailer, Michael Hill International (MHJ) is closing its Canadian stores for two weeks, due to the increasing impact of COVID-19.
As a result of the closures, the company has been forced to stand down the majority of its staff during the two-week period. Once the isolation measures are lifted, the company will re-assess opening the stores, while following government guidelines.
The company is also implementing a crisis plan for its Australian and New Zealand operations, but has not announced any closures thus far.
Foot traffic in Michael Hill stores has dropped significantly in the last two weeks, as customers choose to self-isolate at home. The company stated it will provide further details on how badly this has impacted revenue in its third quarter report.
CEO of Michael Hill, Daniel Bracken, stated the company’s main focus is the safety of customers and employees. He went on to outline the company’s financial position, given the recent unpredictable environment.
“The board and management team are confident that the business will be able to continue to work constructively with all of its stakeholders to navigate the uncertainties presented by the COVID‐19 public health crisis,” Michael explained.
“Whilst there remain many uncertainties about the potential impact and duration of the crisis, we are focused on taking all necessary actions to reduce our costs and cash outflows so that they better match the very subdued consumer demand in all our markets,” he said.
Due to the ever-changing nature of the COVID-19 crisis and the extremely volatile market, the company has chosen to not release its 2020 guidance.
However, Michael Hill says it is reducing its in-house forecast and limiting all non-essential expenditures.
Shares in Michael Hill have slumped 6.67 per cent on the ASX today, trading for 28 cents apiece at 11:37 am AEDT.