A “challenging” second half has impacted full-year profits for jewellery retailer Michael Hill International.
For the year to July 2, group operating revenue increased 5.8 per cent to $629.6 million while statutory profit tax-paid profits decreased to $35.2 million and comparable EBIT fell 6.3 per cent to $58.9 million.
Online sales were “largely flat” for the year at $41.3 million with Brilliance by Michael Hill loyalty program boasting more than 2 million members.
By segment, Australia’s revenue increased 9.1 per cent to $331 million while New Zealand’s revenue grew 5.8 per cent to NZ $132.4 million (A$122.11 million). Canada’s revenue remained largely flat at CA $158.9 million (A$182.32 million)
The business opened three new stores during the year, closed five underperforming ones and completed the Bevilles acquisition.
In the first half of FY24, the company will launch its new bespoke brand TenSevenSeven which will be focussed on servicing the high-end of the market with its personalised diamond ring proposition.
Daniel Bracken, MD & CEO of Michael Hill International, said trading in the second half proved “much harder” with economic headwinds impacting consumer confidence and in turn sales.
“There is no doubt that retail conditions have continued to be very challenging in all markets, with sales growth moderating as the group cycles record first-quarter sales in the prior year.
“While inflation and rising interest rates have impacted consumer spending, I am confident that the group strategy has us well-placed to continue to take market share.”
