0318 GMT - Michael Hill International will find it hard to offset its second-quarter decline in jewelry sales with cost cuts, Citi analyst James Wang warns. He acknowledges that the Australia-listed company has identified A$5 million in cost savings, but tells clients in a note that the scale of the sales decline makes things difficult. After what Wang says was a promising first fiscal quarter, sales across the first half fell 1% on a year earlier and missed the average analyst forecast by 4%. Michael Hill typically breaks even or makes a small loss in its fiscal second half, Wang adds. Citi has a neutral rating and A$0.57 target price on the stock, which is down 3.7% at A$0.52. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
January 23, 2025 22:19 ET (03:19 GMT)
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