Michael Hill has delivered record revenue of $383.4 million for the half year ended January 1, 2023.
The result represents a $30 million increase on the previous best first half in FY20, with 22 fewer stores.
The retailer reported a 6% growth in comparable earnings before interest and tax (EBIT) of $54.5m for the half year, citing strong sales growth and elevated margin.
While digital sales results for the half declined by 9% on last year, they were up 30% on FY21H1 and up 148% on FY20H1 (pre-COVID).
Michael Hill CEO said the overall revenue result was based on strong performances from Australia and New Zealand.
“To deliver record results across sales, gross profit and comparable EBIT for the first half, is a testament to all facets of the business having aligned to produce these results, demonstrating the traction of our strategic growth initiatives and reaffirms the success of our brand elevation journey.
“With the impacts from Covid behind us, significant productivity gains on pre-pandemic trade have been delivered across an optimised store network in all markets. I’m particularly pleased elevated gross margins have been sustained, supported by the further evolution of our loyalty program, reimagined digital experience, enhanced product offering and yet another beautifully executed Christmas campaign that truly resonated with our customers.”
In Australia, retail segment revenue increased by 18.0% to $190.6 million for the half with elevated gross margin at 64.4%.
During the half, two new stores opened, and one under-performing store closed, resulting in 148 stores at the end of the half..