Michael Hill recently reported that group revenue increased by 4.2 per cent to $AUD644.9 million in the past financial year. This figure was offset by a decline in profit, recording a loss of $AUD479,000.
The decline was attributed to higher labour, rent, and metals costs, with the impact of reduced consumer spending also highlighted. Bracken said the company is proactively addressing these concerns.
“While FY24 earnings were disappointing, with challenging economic conditions and inflationary pressures impacting consumers across all markets, the business continued to execute on its clearly articulated strategy, focus on retail fundamentals and drive topline sales," he said.
“Critical to the Michael Hill Group strategy was to establish a clearly defined portfolio of brands. This past year not only saw the refresh of the Michael Hill brand to support its premium market positioning, but also the expansion and integration of the newly acquired Bevilles brand at the value-end of the fine jewellery category."
Sales in Australia improved by 10.3 per cent, countering a decline in New Zealand (11.8 per cent) and modest improvement in Canada (0.6 per cent).
It wasn’t all bad news, however. Bracken indicated that the current financial year was off to a positive start.
“The first eight weeks sales performance has been encouraging, with positive performances from both Australia and Canada, and some improvement in New Zealand where conditions still remain more challenging,” he added.
“As we plan for the year ahead, initiatives are under way to drive sales and productivity, enhance margin, optimise inventory and prioritise operational expenditure across the group.”
Michael Hill recently announced it successfully appealed a judgement in the Supreme Court of New South Wales as part of a case involving a dispute with a package supplier.
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