CEO Daniel Bracken has credited improved marketing and strong holiday-period sales for Michael Hill International’s record-breaking first-half revenue.
Michael Hill achieved revenue of $AU383.4 million for the period ending 1 January, an $AU30 million increase from the 2020 financial year, despite presently operating 22 fewer stores.
“To deliver record results across sales, gross profit, and comparable EBIT for the first half is a testament to all facets of the business having aligned to produce these results, demonstrating the traction of our strategic initiatives and reaffirms the success of our brand elevation journey,” Bracken said.
“With the impacts from COVID behind us, significant productivity gains on pre-pandemic trade have been delivered across an optimised store network in all markets.”
In Australia retail revenue increased by 18 per cent to $AU190.6 million on a year-by-year comparison with the opening of three stores and the closure of one leaving Michael Hill with 282 in total.
Revenue in New Zealand increased by 13.8 per cent to hit $NZ76.3 million ($AU69.7 million).
Bracken added: “I’m particularly pleased elevated gross margins have been sustained, supported by the further evolution of our loyalty program, reimagined digital experience, enhanced product offering, and yet another beautifully executed Christmas campaign that truly resonated with our customers.”
Brilliance by Michael Hill, the company’s loyalty program, now has more than 1.7 million members and accounts for 82 per cent of sales.
Digital sales declined by 9 per cent compared with the previous year; however, they remain significantly higher than pre-pandemic levels.
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