Overview of Michael Hill's FY24H1 financial results

Michael Hill International Limited (ASX/NZX: MHJ) has reported its financial results for the half year ended 31 December 2023. The company's comparable earnings before interest and tax (EBIT) stood at $31.3m, in line with previous guidance, while the group revenue increased by 4% on a 26-week basis to $362.7m. Additionally, the first seven weeks of FY24H2 saw a 9.5% sales growth compared to the prior year, with the Michael Hill Australia retail business driving the improvement.

Executive commentary on FY24H1 performance and strategic focus

Managing Director & CEO Daniel Bracken acknowledged the challenging retail conditions in the first half of FY24, which impacted the company's margin due to higher input costs and increased promotional activity. Despite these challenges, Bracken emphasized the company's commitment to its multi-brand group strategy, focusing on elevating the Michael Hill brand and expanding the Bevilles network to continue taking market share. He also highlighted the positive performance against market data within their category, indicating that the business remains resilient despite the tough conditions.

Summary of FY24H1 performance and future outlook

The first half of FY24 presented challenges for Michael Hill, with tough retail trading conditions impacting the company's performance. Despite this, the company reported a 4% increase in revenue and a 9.5% sales growth in the first seven weeks of FY24H2. Looking ahead, Michael Hill remains committed to its multi-brand group strategy, with a strong emphasis on sales and margin growth. The company's strategic focus includes repositioning the Michael Hill brand, establishing a portfolio of brands, and refining its product and brand proposition. With a clear outlook for network expansion and productivity, the company aims to leverage its group capabilities to drive productivity across all brands and capitalize on growth opportunities.