Palloys
advertisement
Palloys
advertisement
Palloys
advertisement
Goto your account
Search Stories by: 
and/or
 

News













The impact of the COVID-19 pandemic has been felt at Michael Hill International, with profits declining more than 80 per cent for FY19-20.
The impact of the COVID-19 pandemic has been felt at Michael Hill International, with profits declining more than 80 per cent for FY19-20.

Michael Hill announces $3.1 million profit for the year, launches new digital-only jewellery brand

Michael Hill International has released its financial results for FY19-20, recording a modest profit of $3.1 million – a decline of 81 per cent, largely attributed to the COVID-19 pandemic.

Revenue was $492.1 million, compared with $569.5 million in FY18-19, while same-store sales increased 2.7 per cent, largely driven by New Zealand and Canada.

Daniel Bracken
Daniel Bracken
"“The re-opening of our store network saw pleasing sales recovery despite lower foot traffic, and a return to strong margin performance against [the] prior year"
Daniel Bracken, Michael Hill International

Daniel Bracken, CEO Michael Hill International, described it as “a year of two halves”, noting that sales had steadily improved until the widespread lockdowns beginning in March 2020.

Michael Hill stores across Australia, New Zealand, and Canada were temporarily closed for between five and 13 weeks; 17 were permanently closed over the course of the financial year, with one new opening. Michael Hill International operated 290 stores as at 30 June 2020.

“While the COVID-19 closures had a severe impact on headline sales and profit, I was particularly proud of the determination, resilience, and agility of our team across the business through the shutdown and temporary closure periods,” Bracken said.

“The re-opening of our store network saw pleasing sales recovery despite lower foot traffic, and a return to strong margin performance against [the] prior year. This reflected the importance of the strategic progress we have made over the last 12 months and the dedication of our team members and loyal customers,” he added.

Notably, e-commerce increased by 54.7 per cent to a record $24.7 million, compared with $16 million in FY18-19. Digital sales now represent 5 per cent of total sales, an increase from 2.8 per cent in the previous financial year.

Branded collections also performed well, representing 37.5 per cent of sales – an increase from 32.5 per cent in the previous year.

Notably, Michael Hill has since launched Medley Jewellery, a separate brand only available online from its own website, and focused on young female self-purchasers.

Vanessa Brennan, chief brand and strategy officer Medley Jewellery, said, “There was an opportunity in the market among a growing customer audience who have a strong desire for stylish, quality and versatile jewellery. They want affordable and on-trend pieces that can be worn across a number of occasions.”

Medley Jewellery currently has five collections – Alpha Female, The Foundations, Zodiac Hack, Pearls That Pop and Etched Memories – crafted in silver, plated 18-carat gold, plated rose gold, and solid 10-carat gold and priced from $50–$300.

 

More reading:
2020 State of the Industry Report: In-depth analysis of Australia's jewellery chain stores over a decade
Michael Hill reopens 125 stores; closes some permanently
Michael Hill International reports strong half-yearly results
 











Coeur de Lion
advertisement





Read current issue

login to my account
Username: Password:
Ania Haie
advertisement
Duraflex Group Australia
advertisement
Pink Kimberley Australia
advertisement
© 2020 Befindan Media