Michael Hill International Limited has released its financial results for the 52-week year ending 30 June 2024. Despite challenging retail trading conditions and macroeconomic pressures on the discretionary retail sector, particularly fine jewellery, the company has reported positive sales momentum across all markets in recent months.
Key Financial Metrics
- Group Sales: Total group sales, including those from Bevilles, increased by 3.8% year-on-year, with second-half sales up by 4.9%. The final seven weeks of FY24 saw a 6% rise in Group sales, with the Michael Hill brand in Australia and Canada showing positive growth compared to the previous year.
- Digital Growth: Digital sales returned to double-digit growth compared to the previous year, bolstered by the re-platforming of the website and the relaunch of the elevated Michael Hill brand.
- Store Portfolio Management: The company optimized its store network, expanding the Bevilles store network from 26 to 36 stores, ending the year with a total of 300 stores.
Retail Segment Performance in Australia
Segment revenue in Australia, including Bevilles, increased by 10.5% year-on-year and 12.0% in the second half of the year. There were 171 stores (including 36 Bevilles stores) operating at the end of FY24, compared to 172 in the previous year.
CEO Commentary
Daniel Bracken, Managing Director and CEO of Michael Hill International Limited, commented on the results:
“While challenging economic conditions have persisted across all markets throughout the year, particularly in the fine jewellery segment, the Group has continued to outperform the category, with a focus on retail fundamentals and execution of its clearly articulated strategies. Particularly pleasing was the consistent performance of our Canadian business throughout the year.”
Bracken acknowledged the difficult trading conditions and outlined the company’s strategic initiatives to address these challenges: “While FY24 was disappointing, and trading conditions are expected to remain challenging, initiatives are underway to drive sales and productivity, enhance margin, optimise inventory, prioritise and reduce capital expenditure to protect the balance sheet, and further embed cost-conscious discipline across the business.”
He highlighted a significant milestone for the company: “As a key milestone of the Michael Hill brand elevation journey, April saw the unveiling of our first global flagship store at Chadstone in Melbourne showcasing the new brand codes, our first brand ambassador, Miranda Kerr, and a complete re-platforming of our website. I am extremely proud of the enthusiasm, passion and dedication demonstrated by all our team involved in the meticulous and considered delivery of such a pivotal moment for the Michael Hill Brand.”
Implications for the Jewellery Industry
The results indicate a resilient performance by Michael Hill International despite broader economic challenges. The strategic initiatives and recent investments in digital growth and brand elevation are expected to strengthen the company’s market position. The positive momentum in Australia and Canada highlights potential areas for continued growth and stability within the fine jewellery sector.
