End-of-Year Recovery Boosts Michael Hill Revenue

Revenue at Australian jeweler Michael Hill grew for the full fiscal year amid a resurgence in demand in the final two months. 

Group sales increased 3.8% to AUD 641.4 million ($424.9 million) for the 12 months that ended June 30, the company said last week. Sales grew 11% to AUD 359.7 million ($238.3 million) in Australia and were up 0.3% in Canada to CAD 156 million ($113.3 million). In New Zealand, revenue slipped 12% to NZD 114.8 million ($68.5 million).  

While trading remained slow in the first part of the year, sales picked up in May and June, Michael Hill explained. During that time, the company began clearing out inventory to make room for higher-margin products. 

“The last seven weeks of the full year demonstrated positive momentum across all markets and channels, with group sales up, and the core Michael Hill brand in Australia and Canada both achieving positive sales growth compared with the prior comparable period,” the company noted.  

Full-year sales included revenue from the Bevilles chain, which Michael Hill acquired last year. During the period, the jeweler expanded the Bevilles network from 26 to 36 stores. In total, the company now operates 300 shops: 171 in Australia, 44 in New Zealand and 85 in Canada.  

In the second half, group revenue rose 5% year on year to AUD 278.6 million ($184.6 million).  

 “While challenging economic conditions have persisted across all markets throughout the year, particularly in the fine-jewelry segment, the group has continued to outperform the category,” said Michael Hill CEO Daniel Bracken. “While the fiscal year was disappointing, and trading conditions are expected to remain challenging, initiatives are underway to drive sales and productivity.” 

Image: A Michael Hill store in Brisbane, Australia. (Michael Hill)