Michael Hill International has released its financial results for the first half of FY24, with the Canadian market showing modest growth despite challenging conditions for the jewellery retailer globally.
Canadian Market Performance
Sales in Canada increased by 0.6% year-on-year to CAD 88.3 million. While growth was minimal, the region maintained stability compared to other markets, such as New Zealand, which faced significant declines.
Group-wide, total sales rose by 4.1% year-on-year to CAD 330.5 million, driven by strong performance in Australia. Digital sales accounted for 8% of total revenue during the period.
Daniel Bracken, Managing Director and CEO of Michael Hill International, said:
“Whilst the first half was definitely a challenging period for our business with sales for the core Michael Hill brand down, we are encouraged by our performance against the broader jewellery sector.”
Operational Adjustments
Michael Hill closed six underperforming stores in the first half, including one in Canada and five in Australia. The company also streamlined its operations by reducing senior management roles to mitigate rising input costs and inflationary pressures.
Group EBIT is expected to range between CAD 27.5 million and CAD 30.2 million for the period.
Outlook for Canada
Michael Hill continues to pursue its multi-brand strategy, which includes enhancing the Michael Hill brand and growing the Bevilles network in other markets. The Group remains focused on navigating current challenges and preparing for long-term growth opportunities.