Second-Half Gains Help Michael Hill Offset Tough Year 

Australian jeweler Michael Hill reported flat annual sales for the fiscal year, as the retailer battled difficult trading conditions across its global markets. 

Group same-store sales increased 2.4% year on year for the six months that ended June 29, the company reported last week. However, performance in the first half pulled down the full-year figure to a 0.3% gain, with total sales for the year remaining flat at AUD 641.6 million ($414 million). 

The Canadian market was the standout performer, with same-store sales up 4.4% to CAD 160.3 million ($116.2 million) over the full year. In Australia, sales rose 1.2% to AUD 344.1 million ($221.9 million), while New Zealand posted a 6% decline to NZD 106.5 million ($62.7 million). 

New product initiatives, including the company’s expanded lab-grown diamonds collection, are proving popular with existing and new customers, it said.  

While remaining optimistic toward the holiday season, interim CEO Andrew Lowe acknowledged the earnings results were “disappointing.” 

 “A relentless focus on store productivity saw a second-half lift in group same-store sales…. Our Canadian segment yet again delivered record sales,” he said. “Looking forward, the business is committed to taking the positive momentum demonstrated in the second half into the all-important Christmas trading period.” 

The group implemented cost-reduction initiatives by closing 14 underperforming Michael Hill stores and converting two shops into Bevilles, ending the period with a total of 287 locations, down from 300 a year earlier. 

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