Michael Hill is expecting earnings before interest and taxes to be between $56 million and $59 million for the 2023 financial year, with softer sales momentum in the second half.
The jewellery retailer reported group sales were up 6% on the previous year, while second half sales dipped 0.8%. While digital sales also declined 1.4% on the previous year, second half online sales were up 12.3% on FY22.
Michael Hill completed its acquisition of jewellery retailer Bevilles in June 2023, taking the group store count to 304 locations. Australian group retail segment revenue grew by 9.1% during FY23, while New Zealand recorded 5.8% growth and Canada clocked an 0.4% rise.
Michael Hill CEO Daniel Bracken said a number of initiatives are underway to drive growth in the new financial year.
"While acknowledging the challenging economic conditions faced globally, I am pleased with the delivery of full year sales growth in all three markets against what was a record prior year," he said.
"With second half sales flat to last year, I am encouraged by the brand elevation strategy continuing to deliver market share gains.
"The smooth transition of the Bevilles business has seen team members highly energised, engaged and already leveraging from the Michael Hill Group.
"I am excited by the addition of Bevilles to the Michael Hill portfolio of brands, and our early insights only reinforce its complementary strategic fit and reaffirms the opportunity to grow the Bevilles brand and take its offering nationally.
"Discussions are already well advanced to secure new store locations to open prior to Christmas, and for entry into a new state market in the new year."