Michael Hill International says it’s had “another record result” in the first half of its 2023 financial year, with its New Zealand segment seeing a nearly 14% jump in revenue.
The jewellery retailer said it now expected earnings before interest and taxes in the 2023 half-year to be between $52 million and $55m, which was up from $51.6m in the first half of 2022.
NZ revenue jumped 13.8%, Australia grew by 18%, and Canada edged up by just 0.5%.
Chief executive Daniel Bracken said he was “particularly proud” of the results, and first-half sales of $363m were a record – up $30m on the company’s previous best half in 2020.
The business had also been competing against a “record second quarter last year” where Michael Hill benefited from pent-up demand and strong economic conditions.
“This year, while the first-quarter results were cycling store closures, the delivery of 4% growth in the second quarter was outstanding, underpinned by yet another strong Christmas execution,” Bracken said.
Group sales were up 11.7% on the previous half-year and up an even higher 14.5% from 2021 – despite Michael Hill now operating with seven fewer stores.
Three new stores opened – two in Australia and one in Canada – and one underperforming Australian store closed during the half. The group now has 282 stores across Australia, NZ and Canada.
“While record sales were a highlight, equally pleasing was our ability to maintain elevated margins despite significant input cost pressures and increased promotional activity in the market,” Bracken said.
He added that, considering its Canada segment had a “record” first-half last year, this year’s result had represented a 26% growth.
Shares in Michael Hill International had fallen 1.6% to $1.21 by mid-morning trading.
