The Michael Hill International Ltd (ASX: MHJ) share price is down more than 10% at the time of writing due to a disappointing trading update.

The Australian, New Zealand and Canadian jewellery retailer in the third quarter of FY19 to March 2019 total sales were down 0.8% and same store sales were down 1.5%. In the first quarter same store sales were down 11% and in the second quarter were down 2.9%, so the decline is slowing.

Michael Hill also reported that the gross profit margin for the first nine months of FY19 was 62.1%, compared to 62.7% at the same point last year.

Online sales of $12.5 million in the nine months to March 2019 were up 53% and now represents 2.9% of total sales.

During the March 2019 quarter, one store was opened and five poor-performing stores were closed – leaving 307 stores open at 31 March 2019.

Michael Hill CEO Daniel Bracken said: “The company’s performance continued to stabilise during the quarter, as refinements to the strategy improved our position from the first half, further regaining ground lost in the first quarter.”

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.