Michael Hill’s sales slip, Bevilles acquisition complete

(Source: MichaelHillJ/Facebook)

Jewellery retailer Michael Hill International says trading has been “challenging” as consumer sentiment has softened due to prevailing economic conditions.

For the 20 weeks to May 21, sales fell 3.5 per cent overall with the Australian business recording a double-digit decline in the first four months of the second half.

Meanwhile, significant weather events and a recent “resurgence” in security incidents and related costs impacted New Zealand sales.

The retailer has completed the Bevilles Jewellers acquisition and has taken ownership and operational control of the business.

Daniel Bracken, CEO and MD at Michael Hill, welcomed Bevilles’ team members to the business and added the acquisition “provides a platform for significant store network expansion and delivery of incremental earnings”.

He added the business’ pipeline of strategic initiatives will help underpin growth moving into the next financial year.

The group has also secured a three-year $90 million credit facility through the ANZ and HSBC banks.

The facility will aid in the national expansion of the Bevilles store network, enhance its gold recycling platform and launch its digitally-led Bespoke diamond jewellery brand.

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