Michael Hill International (NZX:MHJ) announces record digital first sales

Highlights

  • Michael Hill announces results for FY21, reports strong digital-first sales
  • Store closures across geographies due to lockdown reported
  • Strategy for growth and expansion in place backed by a strong team.

Michael Hill International (NZX:MHJ), the wholesale jewellery manufacturer as well as a retailer, is known for its products across New Zealand, Australia, the US, and Canada. In the recently declared FY21 results by the Company, the digital first sales were recorded up by 53%, whereas the revenue earned was NZ$556.5 million, which is 13.1% higher than pcp.

Image Source: © 2021 Kalkine Media

 The gross profit recorded was NZ$348.9 million, which was 17% higher than pcp. The NPAT was witnessed NZ$45.3 million, which was 1382% higher than pcp. Net cash recorded in the duration was NZ$72.4 million.

Pandemic-related hindrances

There’s no denying the fact that most businesses have flourished online after the pandemic’s onset when non-essentials were not allowed to open up in retails settings. Online stores across the world have witnessed more demand and traffic in the past year.

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Operational Performance

In terms of operational performance in the duration, there was a 42.1% rise in the total sales of the brand as compared to pcp. There were a lot of temporary store closures witnessed across different geographies due to COVID-19-related restrictions. Daniel Bracken, the CEO of the Company, is of the view that he is proud of the results achieved by the Company, which are an outcome of resilience and hard work of the team.

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It was further added that the Company has shown positive growth in eight consecutive quarters, shedding light on the good work that is being put into it. Navigating through different challenges due to the pandemic, with more than half of the Canada-based stores closed for several months, as well as other sporadic closures across different other geographies. Despite the year has been a challenging one in every aspect, the Company held its ground and continued to transform with the help of new technology and strategy.

Image source: © 2021 Kalkine Media New Zealand Ltd

Image Description: COVID related effects

With digital sales having increased drastically in the duration, it now accounts for about 6.3% of the total sales of the Company.

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One of the main priorities of the Company is to keep evolving, whilst creating unique products that represent the brand name correctly.

Bottom Line

Moving towards a new form of digitally inclined business, the Company has weathered many storms and emerged victorious in pandemic times.

On 3 September 2021, the Company traded at NZ$0.870, up by 1.16% at the time of writing.

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