Michael Hill International has announced its financial results for the first half of FY24, revealing that its Australian operations performed strongly despite a challenging retail environment across the Group.
Australian Market Leads Growth
Sales in Australia rose by 10.2% year-on-year to AUD 202.4 million, making it the strongest-performing market for the Group. While other regions faced varying levels of difficulty, Australian consumers contributed significantly to the overall sales growth of 4.1%, which brought total Group revenue to AUD 362.8 million.
Daniel Bracken, Managing Director and CEO of Michael Hill International, acknowledged the challenging retail conditions globally but expressed optimism about the company’s position:
“Whilst the first half was definitely a challenging period for our business with sales for the core Michael Hill brand down, we are encouraged by our performance against the broader jewellery sector.”
Cost Management and Store Closures
To address higher input costs and inflationary pressures, Michael Hill implemented cost-cutting measures, including the closure of six underperforming stores, five of which were in Australia. The company also reduced senior management roles to manage operating expenses.
The Group is forecasting comparable EBIT to fall between AUD 30 million and AUD 33 million for the half.
Future Strategy
Despite market challenges, Michael Hill is focused on its multi-brand strategy, which includes expanding the Bevilles network and strengthening the Michael Hill brand. The company remains committed to navigating current economic uncertainties while positioning itself for long-term growth.
