Australia-based retailer, Michael Hill, has announced impressive financial results for the fiscal year 2023, marked by robust performance in the initial six months and a significant contribution from the recently acquired Bevilles chain.
In the 12-month period concluding on July 2, the company’s revenue experienced a notable surge of 6%, reaching AUD 629.6 million ($407.2 million). While the net profit showed a 25% decline, settling at AUD 35.2 million ($22.8 million), it still retained its position as the second-highest in the firm’s history, as reported by the jewelry retailer last week.
Despite the digital sales remaining relatively constant at AUD 41.3 million ($26.7 million), in comparison to the preceding year’s AUD 41.9 million ($27.1 million), the acquisition of Bevilles in April for $30 million contributed to the overall revenue for four weeks.
This remarkable increase in sales can be attributed to a robust performance during the first half of the fiscal year; however, the latter half was met with more challenging conditions.
Michael Hill CEO, Daniel Bracken, commented on the situation, stating, “The second half of the year posed greater difficulties, as economic headwinds adversely affected consumer confidence and subsequently, sales. Despite the pressures stemming from elevated input costs in both diamond and gold pricing, our profit margins remained resilient.
