Australian jeweler Michael Hill reported a revenue increase for the full fiscal year, driven by a strong demand surge in the final two months.
For the year ending June 30, the company’s total sales rose by 3.8% to AUD 641.4 million ($424.9 million), according to a statement released last week. Sales in Australia grew by 11% to AUD 359.7 million ($238.3 million). In Canada, revenue increased by 0.3% to CAD 156 million ($113.3 million). However, in New Zealand, revenue fell by 12% to NZD 114.8 million ($68.5 million).
Despite slow trading in the early part of the year, sales picked up in May and June. During this period, Michael Hill focused on clearing out old inventory to make way for new, higher-margin products.
“The last seven weeks of the fiscal year showed positive momentum across all markets and channels,” said Michael Hill. “Group sales increased, and the core Michael Hill brand saw growth in both Australia and Canada compared to the previous period.”
The revenue figures for the year also include contributions from the Bevilles chain, which Michael Hill acquired last year. During the fiscal year, the company expanded the Bevilles network from 26 to 36 stores. Michael Hill now operates a total of 300 stores: 171 in Australia, 44 in New Zealand, and 85 in Canada.
In the second half of the year, group revenue grew by 5% year on year, reaching AUD 278.6 million ($184.6 million).
CEO Daniel Bracken acknowledged the challenges faced during the year. “While economic conditions have been tough across all markets, especially in the fine-jewelry segment, the group has outperformed the category,” Bracken said. “Although the fiscal year had its disappointments and we expect ongoing challenges, we are implementing new strategies to boost sales and productivity.”
