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Michael Hill Store Lockdown Leads to Sales Slip
Feb 25, 2021 6:48 AM
By Rapaport News
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RAPAPORT... Revenue at Michael Hill fell 2.9% year on year to AUD 319.9 million ($255.7 million) in the first fiscal half amid coronavirus-related closures and a drop in foot traffic.
Same-store sales — at retail locations open for at least a year — rose 6% for the six months ending December 27, reflecting the Australian jeweler’s continued focus on strategic initiatives to update its business. Net profit climbed 82% to AUD 39 million ($31.2 million), the company said Wednesday.
During the period, Michael Hill missed 3,709 store trading days due to global lockdowns, which equated to lost sales of AUD 23 million ($18.4 million), it noted. The company also closed 15 underperforming stores.
Online sales for the July-to-December period increased 102% to AUD 18.5 million ($14.8 million), representing 6% of total company revenue. Michael Hill also saw strong sales for its new branded collection.
“I’m particularly pleased with our results given the challenging environment for our business — continuous store closures throughout the half [and a] significant decline in foot traffic in all markets,” said Michael Hill CEO Daniel Bracken. “The digitization and elevation of our brand is clearly resonating with our customers, as are our key strategic initiatives.”
Same-store sales rose 11% in the first eight weeks of the second half, Bracken added.
Image: A Michael Hill store in Australia. (Michael Hill)
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Tags:
diamonds, Jewelry, Michael Hill, Rapaport News, retail
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