Michael Hill reported a 1 per cent decline in revenue across the six months ending 29 December. Sales decreased in New Zealand by 7.8 per cent, reaching $NZD59.2 million.
Conversely, a modest improvement (0.6 per cent) was recorded in Australia, where sales totalled $AUD194 million. With sales increasing in Canada by 2.7 per cent, CEO Daniel Bracken said there was cause for optimisim.
“Whilst we are disappointed with our overall sales result for the half, the business was comping record prior year sales in both October and November, with eight fewer stores,” he said.
“The flat sales for the half reflected strong business performance in the first three months, offsetting the more challenging trading conditions at the beginning of the second quarter.
“The strong performance trend that we observed in the first three months of the half has re-emerged through December and January.”
Nine stores were closed during this six-month period – seven in Australia and two in Canada – while one new location was opened in New Zealand. Two new Bevilles locations were also opened in Australia, taking Michael Hill’s network to 294 stores.
“The business is clear on its strategic priorities and is increasingly well-positioned for when the economic cycle recovers,” Bracken continued.
“And pleasingly, the first few weeks of January are very encouraging with signs of strong positive sales momentum, particularly in Canada.”
Digital sales now account for 8 per cent of the jewellery chain’s total revenue.
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