Brand Strategy Boosts Michael Hill’s Revenue
Revenue at Michael Hill rose 11% year on year in the first fiscal half as customers returned to in-store shopping and the company continued its strategy to decrease discounting.
Sales came to a record AUD 363.4 million ($244 million) for the six months ending January 1, the Australian jeweler said Monday. The company also benefited from increased participation in its customer loyalty program, Brilliance by Michael Hill, with 82% of sales coming through that channel. Profit grew 1% year on year to AUD 37.6 million ($25.2 million).
“To deliver record results…is a testament to all facets of the business having aligned, demonstrating the traction of our strategic growth initiatives, and reaffirms the success of our brand elevation journey,” said Michael Hill CEO Daniel Bracken.
Online sales for the first half slipped 9% year on year, as more shoppers chose brick-and-mortar over digital. However, e-commerce revenue rose 30% over the same period two years ago and 148% compared to pre-Covid-19 levels, the retailer explained.
Revenue in Australia climbed 18% year on year to AUD 190.6 million ($128 million), while same-store sales — at branches open a year earlier — rose 9%. In New Zealand, sales increased 14% to NZD 76.3 million ($46.9 million). Same-store sales for the region were up 10%. Revenue in Canada was flat at CAD 92.1 million ($67.7 million).
“With the impacts from Covid-19 behind us, significant productivity gains on pre-pandemic trade have been delivered across an optimized store network in all markets,” Bracken added.
Image: A Michael Hill store in Queensland, Australia. (Michael Hill)