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Michael Hill returns to 3-year high

Michael Hill International soared to a near three year high on Friday after the global jewellery retailer posted its trading update for the year ended 27 June 2021, which was underpinned by continued strong performance.

The group saw continued growth in quarterly and yearly sales – for the quarter, same-store sales were up 7.5% against the prior year, and up 116.3% on an all store sales basis. Same-store sales for the year were up 8.6% against the prior year, and up 10.0% against FY19. Despite 10,447 lost store trading days, all store sales were up 13.5% for the year, with Australia and New Zealand also exceeding FY19 all store sales for the year, even with significant store closures.

Strong margins were also maintained as strategic initiatives were further embedded, helping contribute to significant expected EBOT growth, which the company anticipates full to be in line with or above analysts expectations. The result was also boosted by record digital sales which were up 51.1%. For the first time, digital sales exceeded $30m, representing a record 6.2% of full-year sales (FY20: 5.0%).

The company’s loyalty program, Brilliance by Michael Hill, was also up significantly with program membership now exceeding 750,000, up from approximately 200,000 in 2020.

Due to the strong business performance and disciplined inventory management, coupled with a focus on costs management, the company also maintained balance sheet strength, ending the year with a net cash position of ~$70m.

Following the opening of one new store and the permanent closure of four under-performing stores the group now has a network total of 285 stores across all markets.

Commenting on the result, Michael Hill International Limited, CEO and Managing Director Daniel Bracken said: “This performance provides further evidence that our strategic transformation agenda is on track and delivering. We’ve seen record digital sales, our loyalty program going from strength to strength, further deployment of omnichannel initiatives, and continued evolution of our product offering, go-to-market campaigns and retail fundamentals.”

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