Michael Hill's transformation strategy is continuing to deliver positive results for the business, it has revealed in a trading update.
For Q4 2021, the jeweller reports that same store sales were up 7.5% against prior year, and up 116.3% on an all store sales basis.
For the year, Michael Hill reports that same store sales were up 8.6% against prior year, and up 10.0% against FY19, while all store sales were up 13.5% for the year.
Michael Hill CEO Daniel Bracken said that despite losing 10,447 trading days due to lockdowns around the world, the business was still able to achieve strong results.
"I’m very pleased with our Q4 results – 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," he said.
Key digital markers, including digital sales and loyalty signups, were also strong for Michael Hill in the period.
Full year digital sales were up 51.1% and for the first time, exceeded $30 million, representing a record 6.2% of full year sales.
Meanwhile, the loyalty program Brilliance now boasts over 750,000 members, compared to 200,000 in FY20.
"This performance provides further evidence that our strategic transformation agenda is on track and delivering," Bracken said.
"We’ve seen record digital sales, our loyalty program 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," he said.
During the period, Michael Hill closed four under-performing stores, while one new store was opened.
This action saw the retailer close the period with 285 stores across all markets at year end.
Michael Hill also closed the period with a year end net cash position of $70 million, thanks to its focus on inventory management and a hyper-focus on costs.
Throughout the period, Michael Hill was also contending with frequent store closures and lockdowns, the disruption of which Bracken said was handled well by the business.
"The company continues to navigate a disrupted retail environment, with significant store closures on a regular basis.
"I’m particularly proud that we have taken a strong and proactive position in supporting our team members during these
very challenging times.
"The connections with our teams, customers and suppliers continue to be at the forefront of our minds.
"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 earnings trajectory and explore new opportunities," he finished.