Overview of Michael Hill International Limited's FY24H1 performance

Michael Hill International Limited (ASX: $MHJ) has released its CEO and CFO FY24H1 Update, outlining a challenging period for the business despite achieving record performance in FY23. The company reported a 4% increase in group revenue, including Bevilles, but faced margin pressure due to input costs and market conditions. Digital sales showed growth, and the company made progress on its Group Multi-brand Strategy by embedding the recently acquired Bevilles and launching new stores. The interim dividend of AU1.75 cents per share falls within the dividend policy range, and inventory was well managed.

Executive commentary on FY24H1 performance and strategy

The FY24H1 performance presented challenges for us, despite the record performance in FY23. We faced margin pressure due to input costs and market conditions, impacting our gross profit and comparable EBIT. However, we made solid progress on our Group Multi-brand Strategy, successfully embedding Bevilles and launching new stores. The current trading update for the first seven weeks of FY24H2 shows a 9.5% increase in Group sales, with the Australian segment driving the improvement. Our emphasis on growth is evident through our strategic focus on establishing a portfolio of brands, product and brand proposition, and network expansion and productivity.

Summary of FY24H1 performance and future outlook

Michael Hill International Limited reported a challenging FY24H1 performance, with margin pressure impacting gross profit and comparable EBIT despite a 4% increase in group revenue. The company's emphasis on growth is reflected in its progress on the Group Multi-brand Strategy, including the successful integration of Bevilles and the launch of new stores. The current trading update for FY24H2 shows promising improvement, particularly in the Australian segment. Looking ahead, the company aims to reposition the Michael Hill brand, establish a portfolio of brands, and focus on network expansion and productivity to drive revenue and profits. Additionally, the company remains committed to its sustainability targets for 2030 through the Michael Hill Foundation's initiatives for empowering women and nature restoration.