Michael Hill Closes Stores Despite Increased Sales
January 23, 24
(IDEX Online) - Australian jeweler Michael Hill has closed six under-performing stores and axed some senior positions amid "challenging" retail conditions.
Sales actually rose by 4.1 per cent during the half year ending 31 December 2023, to US$239m (AUS$362.8m), across the 302 outlets in Australia, New Zealand and Canada.
Australia and New Zealand saw retail revenue rise by just over 10 per cent. Stores in Canada were up by 0.6 per cent.
After three years of record results the company said it had been battling difficult trading conditions, with "inflated input costs and aggressive competitor behaviour".
It said margins were under pressure because of higher input costs for gold and diamonds and were expected to be 61 per cent to 62 per cent in the current half year.
Daniel Bracken, managing director and CEO of Michael Hill International Limited, said: "Whilst the first half was definitely a challenging period for our business with sales for the core Michael Hill brand down, we are encouraged by our performance against the broader jewellery sector."