In This Article:
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Revenue: $360 million, down 0.7% and flat on a constant-currency basis.
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Comparable EBIT: $24.1 million for the half year ended December 29, 2024.
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Gross Margin: Broadly in line with FY24 H1; Australia at 60.5%, Canada at 60.8%, New Zealand at 58.9%.
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Digital Sales: $30.3 million, representing 8.4% of Group revenue.
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Net Debt: $9.8 million at the end of the half.
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Store Network: 294 stores at the end of the half, with 256 Michael Hill stores and 38 Bevilles stores.
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Australia Revenue: Increased by 1.2% to $205 million; same-store sales up 0.6%.
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Canada Revenue: Increased by 2.4% to CAD91 million; same-store sales up 2.7%.
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New Zealand Revenue: Decreased by 7.4% to NZD61 million; same-store sales down 7.8%.
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Inventory Reduction: Reduced by $6.6 million to $213 million.
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Cost Reduction Program: $5 million initiated in January 2025.
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Interim Dividend: No interim dividend declared for FY25 H1.
Release Date: February 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Canada delivered another record sales performance, indicating strong market presence and growth.
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Introduction of high-margin gifting products and increased transaction volumes during the key Christmas period.
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Strong digital sales growth, with digital sales reaching $30.3 million, representing 8.4% of Group revenue.
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Successful brand and product initiatives, including the opening of a second global flagship store in Melbourne.
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The launch of the Michael Hill Pendant Bar concept and the introduction of certified sustainable lab diamonds.
Negative Points
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Overall decline in earnings with comparable EBIT of $24.1 million due to aggressive retail competition and higher operating costs.
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Revenue decreased by 0.7% to $360 million, reflecting challenging trading conditions.
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New Zealand segment faced a 7.4% decrease in revenue, highlighting ongoing economic challenges.
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No interim dividend declared for FY25 H1 due to compressed earnings.
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Seven stores were permanently closed, indicating a reduction in physical retail presence.
Q & A Highlights
Q: Can you comment on the recent improvement in sales and how confident you are that sales across the Group will remain positive through the second half? A: Andrew Lowe, CFO: We saw a sales recovery starting in December, which has continued into January and February. Factors like the recent interest rate cuts in Australia and New Zealand are contributing to this positive trend. However, the uncertainty remains about the speed and extent of recovery, so we must continue trading cautiously.