Jewellery retail chain owners Michael Hill Limited today announced their full year results for the financial year, reporting an after tax profit of $34.449 million, up more than $11 million since the corresponding period last year.
Operating revenue was up 10.3 per cent at $489.330 million, while total EBITA were up 28.4 per cent at $45.638 million.
The group reported net operating cash flows of $43.319 million, a dramatic increase from $12.872 million the previous year.
A continued focus on the diamond bridal business and expansion of its “Michael Hill Bead Charm Collection” were attributed as key contributors to the strong growth.
Michael Hill Limited CEO Mike Parsell said that diamond jewellery was one market that had escaped the impact of a spending shift toward online retailing.
“Particularly with diamond rings, jewellery is a very emotional purchase. There's also lots of varying qualities of diamonds and stones and when you buy online you can't get a sense of that, so I think that's helped us avoid losing customers to the internet like we've seen with books and clothing.”
Despite challenges faced due to catastrophe events, New Zealand retail segment revenue increased by 6.2 per cent, with an operating surplus of $18.577 million.
“The lifts we've had in New Zealand have been really pleasing...its a result of concentrating very much on the core basics of our business over the last twelve months,” Parsell said.