Over the past financial year, Michael Hill has increased its profit from $7.9 million to $10 million, driven by a 1.9 per cent increase in total sales, reaching $655.7 million.
Jewellery sales increased in Canada by 7 per cent, accompanied by a rise in Australia (4.8 per cent) and New Zealand (3.6 per cent). CEO Jonathan Waecker said much of the success was driven by a ‘simplification’ of the business.
"Michael Hill was founded on the simple idea that everyone deserves to wear quality jewellery and feel special wearing it, and this year we returned to that focus,” he explained.
“We're listening more closely to our customers and our teams; we've simplified the business, and we've doubled down on quality jewellery made to be worn and given with confidence.
“As a result, sales are up across every market, profitability has improved sharply, Bevilles gained traction with a clear inflection between the halves, and we've restored the dividend. The turnaround is taking hold, there's still plenty more for us to do, and I'm incredibly proud of what our teams have delivered through a year of significant change."
Interestingly, online sales increased by 10 per cent on a year-on-year comparison and now make up more than 8 per cent of the company’s total revenue. The report described e-commerce as ‘by far the largest store’ in the network.
The jewellery retailer currently operates 281 stores across three markets – 157 in Australia, 81 in Canada, and 43 in New Zealand. Over the past year, the company closed eight stores – four in Australia, and two each in Canada and New Zealand.
• Michael Hill has also confirmed that Rob Fyfe will retire as chair of the company’s board. Fyfe has served on the board for 13 years and spent five as chair.
Board member Claudia Batten will become chair when Fyfe retires in November.
“I have every confidence that Claudia and Jonathan will form an outstanding chair and CEO partnership to lead Michael Hill through its next chapter,” Fyfe said.
Following the passing of key figures in the company, including CEO Daniel Bracken and founder Sir Michael Hill, Fyfe remained on the board as chair to oversee the appointment of new leadership.
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