Michael Hill International has reported its financial results for the first half of FY24, highlighting a decline in sales in the New Zealand market. The jewellery retailer cited local economic pressures, adverse weather events, and increased criminal activity as key factors contributing to the performance downturn.
New Zealand Market Performance
Sales in New Zealand dropped by 10.3% year-on-year to NZD 65.4 million in the first half, making it the weakest-performing market in the Group. Several factors weighed heavily on operations, including significant flooding in early 2023, a recession, and a surge in “ram raid” burglaries that resulted in financial losses and the need for additional security measures.
Daniel Bracken, Managing Director and CEO of Michael Hill International, said:
“Whilst the first half was definitely a challenging period for our business with sales for the core Michael Hill brand down, we are encouraged by our performance against the broader jewellery sector.”
Group-Wide Adjustments and Outlook
Group sales increased by 4.1% year-on-year, reaching NZD 397.6 million. However, pressure from higher input costs, inflation, and rising promotional activity impacted earnings before interest and tax (EBIT), which is expected to range between NZD 32.9 million and NZD 36.1 million.
The company responded by closing six underperforming stores—five in Australia and one in Canada—and reducing senior management roles to control costs.
Michael Hill continues to pursue its multi-brand strategy, focusing on expanding the Bevilles network and enhancing the Michael Hill brand across markets.
