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Jewellery company Michael Hill International has recorded improvements in same-store sales across its network in Australia, Canada, and New Zealand, as well as online.
Jewellery company Michael Hill International has recorded improvements in same-store sales across its network in Australia, Canada, and New Zealand, as well as online.

Michael Hill reports strong results amid COVID-19 pandemic

In its latest quarterly trading update, Michael Hill International (MHI) has recorded improvements to same-store sales and e-commerce in the first quarter of FY20-21, despite rationalising its store network from 301 to 289.

Australia was the jewellery company’s best-performing market, with same-store sales increasing 12.5 per cent compared with the same period in 2019 despite the temporary closure of 28 Melbourne stores due to the Victorian lockdown.

Daniel Bracken
Daniel Bracken
"I am particularly pleased with our first quarter results... Although experiencing double-digit foot traffic decline at a store level, we achieved a significant lift in same-store sales"
Daniel Bracken, Michael Hill

It is also MHI’s largest market, with 154 of its stores – approximately 53 per cent of the total network – located there.

Canada and New Zealand also recorded strong results, with same-store sales increasing 5.9 per cent and 4.7 per cent respectively. Temporary store closures also impacted the New Zealand results, with 16 Auckland stores impacted by a three-week COVID-19 lockdown.

Revenue for the quarter totalled $119.3 million, a modest drop of 3.6 per cent when compared with 2019. Australia recorded the largest fall in total sales, of 5 per cent – versus an increase of 5.7 per cent in Canada.

MHI’s e-commerce sales continued their upward trend, increasing by 129 per cent when compared with the same period in 2019; in April, the company noted online sales had increased 49.1 per cent.

Notably, the Brilliance loyalty program has increased its membership by more than 80 per cent since 30 June 2020 to 260,000 members.

Daniel Bracken, CEO MHI, said, “I am particularly pleased with our first quarter results from both a sales and margin perspective. Although experiencing double-digit foot traffic decline at a store level, we achieved a significant lift in same-store sales, largely attributable to a number of key initiatives delivering material improvements in conversion and average transaction value."

He added, "Undoubtedly, the business has been and will continue to be impacted by the COVID-19 pandemic, with uncontrollable impacts on our store network, as seen in Melbourne and Auckland... To navigate the impacts of the pandemic, the company has put in place a number of measures – strong health and safety protocols, accelerating virtual selling and try-ons and rolling out multiple digital initiatives.”

He added that the company was “well-positioned” for Christmas trade due to a “healthy balance sheet” as well as a strong product offering, stable supply chain, and new marketing campaign.
 

Michael Hill international Share Price 2020

The positive results from the first quarter of FY20-21 have buoyed MHI's share price.

More reading:
Michael Hill announces $3.1 million profit for the year; launches new digital-only jewellery brand
Michael Hill reopens 125 stores, closes some permanently
Michael Hill executives to take pay cut, repayments to employees on hold
 











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