Michael Hill has seen an increase in group sales during the first eight weeks of the new fiscal year, thanks to the addition of the Bevilles chain and a shift to higher-priced inventory.
For July and August, the company reported a 3.2% year-on-year rise in sales. Same-store sales, which track branches open for at least a year, rose by 2.7%. Australian same-store sales increased by 5%, while Canadian stores saw a 4% boost. However, New Zealand experienced a 6% decline in same-store revenue.
Daniel Bracken, CEO of Michael Hill, commented, “The sales performance over the first eight weeks has been encouraging, with positive results in Australia and Canada, and some improvement in New Zealand, despite ongoing challenges.”
For the fiscal year ending June 30, Michael Hill’s group revenue grew by 4.2% to AUD 644.9 million (USD 437.2 million). This figure includes sales from the Bevilles chain, acquired in April 2023 for $30 million. Revenue in Australia increased by 10% for the year, while New Zealand saw a 12% drop, and sales in Canada remained unchanged.
The company has been replacing its inventory with higher-value jewelry as part of its strategy to enhance its brand. This shift resulted in a 6% increase in the average transaction value, despite a weak market.
Michael Hill acknowledged the challenging retail conditions for fine jewelry over the past 18 months, citing low consumer confidence and broader macroeconomic pressures.
Throughout the year, Michael Hill expanded its Bevilles network, opening 10 new locations, bringing the total to 36 stores.
Looking ahead, Bracken stated, “We are planning initiatives to drive sales and productivity, enhance margins, optimize inventory, and focus on operational expenditure across the group.”
