New Zealand-born jeweller Michael Hill has reported a group-wide sales slip of one per cent in the first half of FY25, driven by a 7.8 per cent fall in its New Zealand market on a same store sales basis.
New Zealand sales fell by NZ$5 million to NZ$59.2 million, with total sales at NZ$60.5 million.
The sales fall across the ditch was offset by positive growth in Michael Hill’s core Australian market and its growing market in Canada.
On a same-store basis, sales in Australia were up 0.6 per cent for the first half, to $194 million, while its Canada market lifted by 2.7 per cent to C$89.7 million.
Total group sales for Michael Hill hit $359.1 million.
As well as the Michael Hill brand, the group also manages low-price jeweller Bevilles, boutique brand Medley and its high-end luxury brand TenSevenSeven.
“Whilst we are disappointed with our overall sales result for the half, the business was comping record prior year sales in both October and November, with eight fewer stores,” Michael Hill CEO and managing director Daniel Bracken said.
“The flat sales for the half reflected strong business performance in the first three months, offsetting the more challenging trading conditions at the beginning of the second quarter. The strong performance trend that we observed in the first three months of the half has re-emerged through December and January.”
Alongside the sales slip, Michael Hill’s gross margin is projected to land somewhere between 61 per cent and 61.5 per cent, which is up slightly on FY24 and near par with the first half of FY24 which was then 61.5 per cent.
Michael Hill is pointing to the successful launch of its new ‘Pendant Bar’ range and its ‘Lab.’ offering for the resilience of total gross margin, offsetting “persistent higher input costs and more aggressive retail trading conditions.”
The group’s digital sales has also grown, now representing 8 per cent of total group sales for the half.
“As always, I’m very proud of our team for their retail execution, determination and resilience during an incredibly tough trading environment,” Bracken said. “The business is clear on its strategic priorities and is increasingly well-positioned for when the economic cycle recovers. And pleasingly, the first few weeks of January are very encouraging with signs of strong positive sales momentum, particularly in Canada.”
Over the half, nine Michael Hill stores were permanently closed - seven in Australia and two in Canada - with one in New Zealand being opened, taking the network to 256.
Two new Bevilles stores were opened in Australia, taking that brand’s store network to 38.
The group network was 294 stores at the end of the half across all markets, down by six compared to FY24 end.