Bevilles Buoys Michael Hill Revenue in Challenging Market

Group sales at Michael Hill rose in the first eight weeks of the new fiscal year amid the addition of the Bevilles chain and the move to higher-priced inventory. 

Sales for July and August grew 3.2% year on year, while same-store sales — at branches open at least 12 months — were up 2.7%, the Australian jeweler said last week. Same-store sales in Australia climbed 5%, and those in Canada 4%. In New Zealand, same-store revenue fell 6%. 

“The first eight weeks’ sales performance has been encouraging, with positive performances from both Australia and Canada, and some improvement in New Zealand, where conditions still remain more challenging,” said Michael Hill CEO Daniel Bracken. 

Meanwhile, group revenue for the fiscal year that ended June 30 rose 4.2% to AUD 644.9 million ($437.2 million). The total included sales from the company’s chain of Bevilles stores, which it acquired in April 2023 for $30 million. Revenue in Australia grew 10% for the full year. In New Zealand, sales fell 12%, and they were flat in Canada.  

During the period, Michael Hill replaced its inventory with higher-value jewelry as part of its initiative to elevate its brand. The average transaction value grew 6% during the year. The increase came amid a weak market.  

“Following a period of record results for the group, retail conditions for the fine-jewelry sector over the last 18 months have been challenging due to low consumer confidence and broader macroeconomic pressures,” the company noted.  

Throughout the year, Michael Hill expanded its Bevilles network, opening an additional 10 locations, which brought the chain’s total to 36 stores.  

 “As we plan for the year ahead, initiatives are underway to drive sales and productivity, enhance margin, optimize inventory and prioritize operational expenditure across the group,” Bracken added.

Image: A Michael Hill store in Toronto, Canada. (Shutterstock)