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Michael Hill Sales Climb as Stores Reopen

Jul 19, 2021 7:03 AM   By Rapaport News
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Australian jeweler Michael Hill reported a rise in revenue during the fourth fiscal quarter amid the reopening of a number of its stores and a sharp increase in online sales.

Group sales soared 116% to AUD 116 million ($85.5 million) in the three months ending June 30, the company said last week. Same-store sales — at branches open more than a year — grew 7.5%.

During the period, Michael Hill had “significant” store shutdowns due to Covid-19, it said. However, more shops were open than during the same period last year, when its entire network across Australia, New Zealand and Canada closed.

Same-store sales in Australia rose 9% in the April-to-June period to AUD 33.6 million ($24.8 million). Of the 150 stores Michael Hill operates in the area, 102 were impacted by temporary shutdowns, the jeweler said. By the end of the quarter, all but 32 had reopened. Revenue in New Zealand rose 16% to NZD 15.1 million ($10.5 million). Sales in Canada fell 8% to CAD 6.4 million ($5 million), as nearly half of the jeweler’s stores closed, while the rest were impacted by government restrictions, Michael Hill noted.

Group revenue for the full fiscal year climbed 14% to AUD 552 million ($406.9 million), with the jeweler recording a 51% increase in e-commerce sales. Online revenue exceeded AUD 30 million ($22.1 million) for the first time, accounting for a record 6% of full-year sales, Michael Hill explained.

In the first few weeks of the new fiscal year, the company faced further disruption, as 46 stores in Australia had short lockdowns, while another 64 remain temporarily closed. 

“The company continues to navigate a disrupted retail environment, with significant store closures on a regular basis,” noted Michael Hill CEO Daniel Bracken. “We finished the year with a strong trading performance and a very robust balance sheet. Combined with demonstrated traction in our growth strategies, this sees the company well-positioned to continue its earnings trajectory and explore new opportunities.” 

Image: A Michael Hill store in Brisbane, Australia. (Shutterstock)
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Tags: Australia, Canada, COVID-19, Daniel Bracken, Jewelry, Michael Hill, New Zealand, Rapaport News
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