Michael Hill International CEO Daniel Bracken has outlined a cause for optimism following slow sales over the past six months.
Michael Hill recently reported a minor decline in revenue across the first half of the financial year, spurred by sales struggles in New Zealand.
Conversely, sales improved in the Australian and Canadian markets, and Bracken said that despite the adverse economy, the chain was well-positioned for the future.
“The business is clear on its strategic priorities and targeted cost-out initiatives and will be well positioned for when the economic cycle recovers,” Bracken said.
“And pleasingly, the first seven weeks of the second half are very encouraging with signs of strong positive sales momentum, particularly in Canada.”
Digital sales now account for 8 per cent of the company’s total revenue. With sales reportedly improving by 1.7 per cent over the past seven months, Bracken said the chain was achieving comparable results with fewer stores.
“Our gross margin is improving, underpinned by product and brand initiatives, despite the headwinds of elevated gold prices, Bracken continued.
“Furthermore, the business is committed to delivering cost reductions through the second half.”
Across these six months, Michael Hill’s global network dropped from 300 stores to 294.
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Credit: jewellermagazine.com
