Michael Hill expects higher sales in Australia, Canada

Jeweller Michael Hill anticipates higher group sales in the last fiscal year on the back of better results in Australia and Canada.

The company forecasts total sales to have grown 3.8 per cent to $641.4 million as its Australian segment sales rose 10.5 per cent to $359.7 million and Canadian segment sales increased 0.3 per cent to C$156.0 million in the year ended June 30.

New Zealand segment sales, however, declined 11.8 per cent to NZ$114.8 million.

The company noted that the past seven weeks showed positive momentum across all markets and channels, with group sales climbing 6 per cent.

Gross margin is estimated at 60.5 per cent while comparable earnings before interest and taxes (EBIT) is expected to range between $14 million and $16 million.

Michael Hill ended the year with 171 stores including 36 Bevilles stores in Australia, 44 stores in New Zealand, and 85 stores in Canada.

“As a key milestone of the Michael Hill brand elevation journey, April saw the unveiling of our first global flagship store at Chadstone in Melbourne showcasing the new brand codes, our first brand ambassador, Miranda Kerr, and a complete re-platforming of our website,” said Daniel Bracken, MD and CEO at Michael Hill International.

“While FY24 was disappointing, and trading conditions are expected to remain challenging, initiatives are underway to drive sales and productivity, enhance margin, optimise inventory, prioritise and reduce capital expenditure to protect the balance sheet, and further embed cost-conscious discipline across the business.”

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