FY23: Michael Hill reports record year for growth despite soft second half

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By Published On: July 20, 20230 Comments

Jewellery retailer Michael Hill has reported full year growth across its markets despite a slow second half.

Michael Hill has released its FY23 results. The company is reporting group sales growth of 6 percent YoY with an anticipated FY23 Group comparable EBIT of between $56m to $59m and total group sales amounting $592.5m.

The second half of the year was slow for the company and down 0.8 percent on 2022. Full year EBIT is also set to be down on last year, with FY22 sitting at $62.9m.

Digital sales led the charge in the second half however, up 12.3 percent on 2022, but for the full year were down 1.4 percent.

“While acknowledging the challenging economic conditions faced globally, I am pleased with the delivery of full year sales growth in all three markets, against what was a record prior year. With second half sales flat to last year, I am encouraged by the brand elevation strategy continuing to deliver market share gains,” said Managing Director and CEO of Michael Hill International Limited, Daniel Bracken.

Breaking the results down to its segments, for Australia segment revenue grew by 9.1 percent on last year with 172 stores (including 26 Bevilles stores) trading at the end of the year, 30 more than last year. In New Zealand segment revenue grew by 5.8 percent on 2022 and is down 2 stores to 46, with the closures made to underperforming stores. And in Michael Hill’s most recent market Canada, segment revenue grew by 0.4 percent on LY with 86 stores trading at the end of the year, up 1 store since last year.

Michael Hill successfully completed the acquisition of Australian jewellery retailer Bevilles on June 1 this year and with the Bevilles team having successfully transitioned, the key focus is now on expanding the store network nationally.

“The smooth transition of the Bevilles business has seen team members highly energised, engaged and already leveraging from the Michael Hill Group,” said Bracken. “I am excited by the addition of Bevilles to the Michael Hill portfolio of brands, and our early insights only reinforce its complementary strategic fit, and reaffirms the opportunity to grow the Bevilles brand and take its offering nationally. Discussions are already well advanced to secure new store locations to open prior to Christmas, and for entry into a new state market in the new year.”

Other plans for the year ahead includes the next steps after successfully refinancing a banking facility with a replacement three year $90m facility planned.

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About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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