Michael Hill Sees Strong Start to 2022

RAPAPORT… Michael Hill’s revenue rose in the third fiscal quarter amid an increase in digital sales and the reopening of its store network.

Group revenue climbed 11% to AUD 131.6 million ($97.6 million) in the three months ending March 27, the jeweler reported Tuesday. While the company faced no mandatory store lockdowns during the quarter, it did see lower foot traffic, it noted. However, digital sales for the January-to-March period jumped 31% year on year as more consumers turned to online purchasing amid the spread of the Covid-19 Omicron variant. Same-store sales — at branches open for at least a year — grew 4.8% to AUD 88.1 million ($65.3 million).

Same-store sales in Australia increased 2.2% to AUD 50.2 million ($37.2 million), while those in New Zealand rose 3.1% to NZD 20.4 million ($14.1 million). Same-store sales in Canada advanced 7% to CAD 17.3 million ($13.8 million).

“I’m delighted with our strong third-quarter results, considering the disruption from Omicron,” said Michael Hill CEO Daniel Bracken. “I’m particularly proud of this result as it marks our 11th quarter of positive same-store sales growth…demonstrating the transformation and elevation of the Michael Hill brand is continuing to resonate with both new and loyal customers.”

The company is also considering digital expansion opportunities in new territories and “pursing potential acquisitions,” Bracken added.

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