Michael Hill performance glitters

]

Listed jeweller chain Michael Hill International has delivered its eighth consecutive quarter of sales growth.

Same store and online sales for the year ended June 27 were up 8.6 per cent on last year and 10 per cent on 2019. Digital sales were up 51.1 per cent and for the first time exceeded $30 million, making up 6.2 per cent of all sales.

Managing director Daniel Bracken​ credits this growth to the company’s “strategic transformation agenda”.

“We’ve seen record digital sales, our loyalty programme going from strength to strength, further deployment of omni-channel initiatives, and continued evolution of our product offering, go-to-market campaigns and retail fundamentals,” Bracken said.

READ MORE:

SIMON O’CONNOR/STUFF Maryanne Wells has a jewellery brand called All Things Bright and Beautiful.

“We finished the year with a strong trading performance and a very robust balance sheet. Combined with demonstrated traction in our growth strategies, this sees the company well-positioned to continue its earning trajectory and explore new opportunities,” he said.

Despite losing 10,447 store trading days due to Covid-19 lock-downs, all store sales were up 13.5 per cent for the year.

Michael Hill had a year-end net cash position of $70m.

Over the year it closed four under-performing shops and opened one new one. It has 285 stores throughout New Zealand, Australia and Canada.

For the June quarter New Zealand online and shop sales were up 15.7 per cent and in Australia up 8.7 per cent. But Canada sales were down 7.6 per cent. For most of the quarter 40 Canadian stores were temporarily closed.

Dusty Hill: ZZ Top bassist dies aged 72

]

“We, along with legions of ZZ Top fans around the world, will miss your steadfast presence, your good nature, and enduring commitment to providing that monumental bottom to the ‘Top’,” the statement from Gibbons and Beard said.

Here’s why the Michael Hill (ASX:MHJ) share price is soaring 7%

]

The jewellery retailer reported increased sales over the fourth quarter of FY21, despite facing numerous lockdowns

The Michael Hill International Ltd (ASX: MHJ) share price is gaining today after the company released a trading update for the fourth quarter of the 2021 financial year.

Right now, shares in Michael Hill are going for 87 cents apiece – 6.75% higher than their previous closing price.

Within its update, the jewellery retailer reported strong same-store sales growth and record digital sales.

Let’s take a closer look at the news driving the Michael Hill share price higher.

The Michael Hill share price is soaring on the back of news its same-store sales were up over the quarter just been, despite many of its doors being temporarily closed due to lockdowns.

Over the quarter, Michael Hill’s same-store sales were 7.5% higher than the previous comparable period, bringing in $54.6 million.

The jewellery retailer’s full financial year same-store sales now total $474 million – 8.5% higher than in the previous financial year.

Additionally, its all-store sales were up 116.3% over the quarter, and 13.5% higher than the previous financial year’s.

Michael Hill also reported record online sales over the financial year just been. Its online store processed more than $30 million worth of sales over the 12 months ended 30 June 2021.

That’s particularly fortunate as 102 of Michael Hill’s 150 Australian stores faced temporary closures due to COVID-19 lockdowns over the fourth quarter. In total, the company lost 559 trading days.

Its Canadian stores had a harder time yet. Of the 86 Michael Hill stores in Canada, 40 were closed for most of the fourth quarter and the rest faced restrictions. Michael Hill lost 3,323 trading days in the country.

Michael Hill also reported it maintained its strong margin over the quarter just been, and its earnings before interest and tax (EBIT) is in line with or above analysts’ expectations.

The company expects to end the year with a cash position of around $70 million.

Michael Hill’s CEO and managing director Daniel Bracken said:

(Michael Hill has reported) sales growth in all markets, increased margins, and an outstanding performance from our bricks and mortar stores delivering almost 20% same-store sales growth for the quarter. Setting aside the global store network closure in 2020, Michael Hill has now delivered eight consecutive quarters of positive comp sales growth, together with sustained margin expansion.

This performance provides further evidence that our strategic transformation agenda is on track and delivering.

Michael Hill share price snapshot

Including today’s gains, the Michael Hill share price has increased by 25% year to date. It has also gained 165% since this time last year.

The company has a market capitalisation of around $316 million, with approximately 387 million shares outstanding.