Michael Hill Revenue Flat in Challenging Market

Australia-based jewelry retailer Michael Hill International says revenue for FY 2025 – the year to 29 June 2025 – was broadly flat compared with the previous year, down 0.2 per cent to AUD 643.7m (USD 431.3m).

Trading conditions remained challenging, it said, with the addition of volatile gold and diamond prices and US tariffs.

However group sales for the first seven weeks of FY 2026 were up 3.0 per cent year-on-year, and same store sales were up 3.2 per cent.

The company has 287 stores (down from 300 last year) in Australia, New Zealand and Canada, including low-price retailer Bevilles, Medley, and its new luxury business TenSevenSeven.

“Global economic uncertainty and challenging retail trading conditions persisted across all markets, with full year sales, gross margin and earnings broadly in line with prior year,” the company said in its Full Year Results, published yesterday (25 August).

Michael Hill chair Rob Fyfe paid tribute to CEO Daniel Bracken, aged 57, who died suddenly in February, and to founder Sir Michael Hill who died of cancer, aged 86, in July.

Source: DCLA

Michael Hill closes six stores, axes senior managers amid tough retail environment

Well-known jewellery chain Michael Hill has revealed it closed six stores in the past six months and scrapped senior management roles due to tough retail conditions.

In a trading update released by the stock market listed company, it described the six months to December 31, 2023 as a “challenging period for the business” as its profitability took a hit and is estimated to be down 45 to 39 per cent on the same period of 2022.

Of the six “underperforming” stores it closed, one was in regional WA, one in Queensland, one in Victoria, two in NSW and one in Canada.

In the statement, the company blamed economic conditions for “impacting consumer sentiment”, adding that its profit margin was affected by the inflated cost of gold and diamonds, and “aggressive competitor behaviour”, which led to a decision to “reduce operating costs, including the exit of a number of senior management roles”.

It did not reveal how many staff or which roles were affected.

Michael Hill also owns the more affordable Bevilles chain.

The company achieved sales of $362.8 million during the six months to December 31, 2023, which was up 4.1 per cent on the same period of 2022.

But it revealed its gross profit for the period was expected to be between $30-33 million, which represents a fall of 45 to 39 per cent from the gross profit of $54.5 million it posted in the second half of 2022.

Earlier in 2023 the company bought the more affordable Bevilles jewellery chain, and it opened four new Bevilles stores in Australia during the past six months.

Michael Hill CEO and managing director Daniel Bracken said profit margins were hit in the second half of 2023. Picture: Richard Walker.

Source: news.com.au

Michael Hill Plans to Expand Bevilles Throughout Australia

Michael Hill expects to open new Bevilles stores across Australia following its acquisition of the jeweler, with some locations to launch before the holidays.

“I am excited by the addition of Bevilles to the Michael Hill portfolio of brands, and our early insights only reinforce its complementary strategic fit and reaffirms the opportunity to grow the Bevilles brand and take its offering nationally,” Michael Hill CEO Daniel Bracken said last week. “Discussions are already well advanced to secure new store locations to open prior to Christmas and for entry into a new state market in the new year.”

The Australia-based retailer bought the 26-branch Bevilles in April for AUD 45.1 million ($30 million). It plans to take the jewelry chain international, with the hopes of achieving 80 shops across Australia, New Zealand and Canada by 2028.

Group revenue increased 6% to AUD 628.1 million ($423.7 million) for the full fiscal year that ended July 2. Sales in Australia grew 9% to AUD 331 million ($222.9 million) and were up 6% in New Zealand to NZD 132.4 million ($82 million). In Canada, revenue rose 0.4% to CAD 158.1 million ($119.7 million).

Michael Hill currently operates 172 stores in Australia, including Bevilles; 46 in New Zealand; and 86 in Canada.

Source: DCLA

Michael Hill to Close Stores in Canada

Michael Hill will temporarily close all its Canadian stores amid the coronavirus pandemic, while locations in Australia and New Zealand currently remain open.

The jeweler’s Canadian stores are set to shut for a two-week period, but the company will reevaluate and may lift or extend the shutdown as necessary based on the health situation, it said last week. During the closure, most of the jeweler’s workforce will either be given leave without pay, or may take unused vacation time.

Additionally, the company will not provide revenue guidance for the fiscal year ending June 30, as it has not fully assessed the impact of the virus on its sales.

“In the last two weeks there has been a significant drop off in foot traffic in each of our trading markets and we are seeing a corresponding impact on sales,” the jeweler said. “The company will provide further details when they are available as part of our regular [third-quarter] trading update in early April. [We] have not provided guidance on earnings for the current financial year, and are not in a position to [give] a reliable forecast.”

Any existing analyst forecasts are also not reliable, as they were prepared without taking into account the current trading environment, Michael Hill observed.

The retailer plans to reduce any non-essential spending during this time, and will implement a hiring and travel freeze, it said. It is also speaking with its landlords about temporary rent relief during the shutdowns.

“During these challenging times, the health and safety of our people and customers are foremost in our minds,” said Michael Hill CEO Daniel Bracken. “The board and management team are confident that the business will be able to continue to work constructively with all of its stakeholders to navigate the uncertainties presented by the COVID-19 public-health crisis. We are focused on taking all necessary actions to reduce our costs and cash outflows so that they better match the very subdued demand in all our markets.”

Source: DCLA

Michael Hill to Close Stores in Canada

Michael Hill will temporarily close all its Canadian stores amid the coronavirus pandemic, while locations in Australia and New Zealand currently remain open.

The jeweler’s Canadian stores are set to shut for a two-week period, but the company will reevaluate and may lift or extend the shutdown as necessary based on the health situation, it said last week. During the closure, most of the jeweler’s workforce will either be given leave without pay, or may take unused vacation time.

Additionally, the company will not provide revenue guidance for the fiscal year ending June 30, as it has not fully assessed the impact of the virus on its sales.

“In the last two weeks there has been a significant drop off in foot traffic in each of our trading markets and we are seeing a corresponding impact on sales,” the jeweler said. “The company will provide further details when they are available as part of our regular [third-quarter] trading update in early April. [We] have not provided guidance on earnings for the current financial year, and are not in a position to [give] a reliable forecast.”

Any existing analyst forecasts are also not reliable, as they were prepared without taking into account the current trading environment, Michael Hill observed.

The retailer plans to reduce any non-essential spending during this time, and will implement a hiring and travel freeze, it said. It is also speaking with its landlords about temporary rent relief during the shutdowns.

“During these challenging times, the health and safety of our people and customers are foremost in our minds,” said Michael Hill CEO Daniel Bracken. “The board and management team are confident that the business will be able to continue to work constructively with all of its stakeholders to navigate the uncertainties presented by the COVID-19 public-health crisis. We are focused on taking all necessary actions to reduce our costs and cash outflows so that they better match the very subdued demand in all our markets.”

Source: DCLA