How Michael Hill reported record Christmas sales despite COVID-19 closures

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How Michael Hill reported record Christmas sales despite COVID-19 closures

 How Michael Hill reported record Christmas sales despite COVID-19 closures
Image source: William Potter,Shutterstock

Highlights

  • Michael Hill announced record sales during the Christmas season despite the company facing challenges due to COVID-19-induced store closures.
  • The jewellery retailer also said that the group’s all stores sales were up 9.8% in the second quarter of FY2022 to AU$217.5 million.
  • The company reported a surge of 5.2% in same store sales in Australia during the quarter.

Jewellery company Michael Hill International Ltd (ASX:MHJ) on Friday announced record sales during the Christmas season despite the company facing challenges due to COVID-19-induced store closures. The retailer said that robust sales were reported in all the markets and channels.

In its latest trading update, Michael Hill said that the group’s all stores sales were up 9.8% in the second quarter of FY2022 to AU$217.5 million. Record sales were registered despite the company losing 2,381 store trading days during the period under review. Same store sales were up 9.6% on the previous year to AU$204.2 million.

The company reported a surge of 5.2% in same store sales in Australia during the quarter. The all-stores sales were up 2.2%. It happened despite 38 New South Wales (NSW), 29 Victorian and four ACT stores being temporarily closed between two and five weeks.

The same store sales were up 13.4% and all store sales were up 2.4% for New Zealand. Similarly, the same store sales were up 11.2% and all store sales were up 28.1% for Canada.

What did Michael Hill’s management say?

Commenting on the result, the managing director and CEO of Michael Hill International Limited, Daniel Bracken, said that the record results were possible due to successful planning and execution by the team.

“This strong performance now marks our 10th quarter of positive same store sales growth since FY19Q3 and further demonstrates the success of the continued transformation of the Michael Hill brand,” Bracken added.

“This result also demonstrates our strategic initiatives are driving both sales and margin growth, which will be further enhanced by our capital management strategy,” he noted.

Meanwhile, the company expects first half FY22 group comparable earnings before interest and taxes of AU$49 million to AU$53 million, up from AU$44.6 million in the corresponding period of last year.

Michael Hill’s share price

The stock has given a negative year-to-date (YTD) return of nearly 3%. In the past year, the stock rose by over 110%. In the last five years, the stock gave a return of over 4%.

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