Rapaport News




Advanced search
Latest Articles
Rough Markets
Polished Markets

Michael Hill’s Revenue Falls in First Half

Discounting policy contributed to 2.7% decline.
Feb 27, 2019 8:15 AM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share

 Michael Hill’s sales fell 2.7% in the first half of its fiscal year due to the lingering impact of a discounting policy that it has been working to abolish, the company said.

Group revenue dropped to AUD 315.4 million ($226 million), the jeweler reported Wednesday. During the first four months of the period ending December 31, the jeweler suffered from a marketing strategy featuring heavy discounting, which it believed lowered the value of its brand among consumers. Same-store sales — those at branches open for at least a year — slid 6% during the six months.

However, sales improved in the last two months of 2018 as it adjusted its strategy, with group sales increasing 2.9% for that period, while same-store sales grew 1.1%. 

“[The] move away from discounting…had a significant impact on revenue,” the company said. “A refined approach to event and promotional campaigns in November and December saw a turnaround in performance.”

Group profit more than doubled to AUD 19.5 million ($14 million) in the first fiscal half, versus AUD 8.7 million ($6.2 million) a year before. In 2017, the company paid one-time charges related to its store closures in the US.

Same-store sales in Australia, the jeweler’s largest market, fell 5% to AUD 175.5 million ($125.8 million). Profit for the region dropped 6% to AUD 110.5 million ($79.2 million).

Sales in New Zealand slipped 6% to NZD 65.8 million ($45.2 million), with profit sliding 4.1% to NZD 41.2 million ($28.4 million). Revenue for shops in Canada rose 0.9% to CAD 74.4 million ($56.6 million). Profit for the region went up 0.3% to CAD 46 million ($35 million).

The group opened six new stores during the period, and closed three, bringing the total number to 311 on December 31.

Image: A Michael Hill store in Australia. (JHVEPhoto/Shutterstock)
Tags: Australian jeweler, Canada, Emma & Roe, Michael Hill, New Zealand, Rapaport News
Similar Articles
Pandora Minnie charm 140Pandora Flags Concerns as More Stores Shut
Jan 12, 2021
Pandora has warned it is uncertain how the escalation in Covid-19 cases...
New Book Reports Favorable Forecast for Luxury
Chow Tai Fook Sales Rise as China Recovers
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First

Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
twitter twitter
About Rapaport
Advertise with us