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Michael Hill Reports 4% Growth in H1 Revenue, Reaching $362.7 Million

Michael Hill International, a prominent jewelry retailer with operations in Australia, New Zealand, and Canada, has disclosed a 4% increase in group revenue to $362.7 million for the first half of the fiscal year ending December 31, 2023. This upturn was notably influenced by the acquisition of the Bevilles brand. However, sales for the core Michael Hill brand, while showing improvement during the half, remained negative in comparison to the record-breaking performance of the previous fiscal year’s first half.

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The company achieved comparable earnings before interest and tax (EBIT) of $31.3 million, aligning with earlier forecasts. Nonetheless, gross margins experienced pressure at 61.5%, attributed to elevated input costs for gold and diamonds, alongside intensified promotional endeavors aimed at addressing heightened competition within the retail sector.

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Inventory levels surged to $219.8 million, primarily due to the Bevilles acquisition, while closing net debt amounted to $11.6 million. An interim dividend of AU1.75 cents per share was declared.

Daniel Bracken, Managing Director & CEO of Michael Hill, remarked, “The first half posed challenges for the discretionary retail sector, yet we find encouragement in our performance relative to market data within our category.”

In Australia, H1 retail segment revenue surged by 10.2% to $202.3 million, propelled by the launch of four new Bevilles stores and the closure of five Michael Hill stores. The total store count reached 171 by the end of the reporting period, inclusive of 30 Bevilles outlets.

Conversely, revenue from New Zealand declined by 10.3% to NZ$65.4 million, while revenue from Canada saw a modest increase of 0.5% to CA$88.6 million.

Bracken further stated, “Despite challenging economic conditions and the retail environment, we are buoyed by our consistent performance in Canada and early signs of progress in Australia in the second half.”

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