Shutdowns Send Michael Hill's Profit Sliding

By Rapaport News / August 19, 2020 / www.diamonds.net / Article Link

RAPAPORT... Michael Hill's earnings slumped 81% in the last fiscal year amid the temporary closure of most of its 290 stores in the second half.The Australia-based jeweler reported profit of AUD 3.1 million ($2.3 million) for the fiscal year ending June 30, as stores remained closed for a period of five to 13 weeks to stem the spread of the coronavirus. Group revenue fell 14% to AUD 492.1 million ($357.3 million)."The Covid-19 closures had a severe impact on headline sales and profit," Michael Hill CEO Daniel Bracken said Wednesday. Same-store sales - at branches open more than one year - rose 2.7% to AUD 469.3 million ($340.7 million). This partly came from a strong jump in digital sales, which increased 55% to AUD 24.7 million ($17.9 million) as shoppers moved to online purchasing while stores were shut. Michael Hill also saw positive results from the new retail model it implemented in the beginning of the year, in which it moved away from a discounting strategy.The company plans to build on its digital success through the launch of an online-only brand called Medley."This offers us a real opportunity to expand into the high-margin demi-fine category, attracting a new customer demographic," Bracken noted.Image: A Michael Hill store in Australia. (Michael Hill)

Recent News

Gold stocks weaker but outperform slump in other sectors

October 13, 2025 / www.canadianminingreport.com

West Africa-focussed Robex and PDI to merge

October 13, 2025 / www.canadianminingreport.com

Gold stocks outperform equity market gains

October 06, 2025 / www.canadianminingreport.com

Most major producers rise but TSXV gold mixed

October 06, 2025 / www.canadianminingreport.com

Platinum, palladium, copper gain on green China, supply constraints

September 29, 2025 / www.canadianminingreport.com
See all >
Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok