Double digit increase in sales for Michael Hill

Those figures would mark a 12 per cent increase in sales performance for the Brisbane-based jewellery retailer that is operating 280 stores across Australia, New Zealand, and Canada.

Sales in Australia for the half increased 18 per cent to $190.6 million while in New Zealand sales lifted 13.8 per cent to $76.3 million. Sales were neutral in Canada, improving by 0.5 per cent to $92.2 million.

Michael Hill CEO Daniel Bracken said pent up demand and a pleasing holiday period helped drive the results.

“I’m particularly proud of these results, given we were comparing to a record second quarter last year, where we benefited from pent-up demand and strong economic conditions,” Bracken told The Australian. 

“This year, while the first quarter results were cycling store closures, the delivery of 4 per cent growth in the second quarter was outstanding, underpinned by yet another strong Christmas execution. Pleasingly, first half sales were up 12 per cent on last year, and for a more meaningful reflection of fiscal 2023 performance, up 14 per cent on two years ago.”

Digital sales declined by 9 per cent; however, remained significantly higher (30 per cent) higher than in the first half of 2021.

Bracken recently revealed that the retailer’s average transaction value in the past two years has risen 15 per cent and that Michael Hill’s loyalty program now has 800,000 members, quadrupling during the pandemic.

“While record sales were a highlight, equally pleasing was our ability to maintain elevated margins despite significant input cost pressures and increased promotional activity in the market,” Bracken said.

Michael Hill’s earnings are expected to be between $52-55 million after reporting $51.6 million in the first half of 2022.

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