Michael Hill faced a challenging first fiscal half, as weaker performance in the New Zealand market overshadowed holiday gains in Australia and Canada.
For the six months ending December 29, revenue slipped 1% year over year to AUD 359.1 million ($226.7 million), the Australian jewelry retailer announced last week. While Canada saw record growth of 2.4% to CAD 90.4 million ($63 million) and Australia’s sales rose 1.3% to AUD 204.9 million ($129.4 million), New Zealand struggled with a sharp 7% decline, falling to NZD 60.5 million ($34.5 million).
Michael Hill noted that while the first three months of the fiscal year showed strong sales, the beginning of the second quarter was marked by difficult trading conditions. However, sales rebounded in December and into January.
To mitigate financial challenges, the company closed a net eight underperforming stores in Australia and Canada, aiming to streamline operations and reduce costs.
“While we are disappointed with our overall sales results, it’s important to recognize that we were comparing against record prior-year sales in October and November, and we operated with eight fewer stores,” said Michael Hill CEO Daniel Bracken. “Despite the setbacks, our strong performance in the early months helped offset the tougher trading environment we faced later in the quarter.”
As the jewelry market fluctuates, can Michael Hill adapt to shifting consumer trends and regain its growth momentum?