Michael Hill has delivered positive same store sales across all regions over the Christmas quarter, despite seeing a shift in consumer behaviour due to the success of Black Friday.
The jewelry retailer said it saw a meaningful lift in sales during November due to the consumer excitement surrounding Black Friday, but that this led into a softer first half to December.
New Zealand saw same store sales grow 5 per cent to $42.8 million, and all store sales up 5.4 per cent. According to the brand, New Zealand remains its most productive market.
However, Australian operations saw same store sales grow 1.6 per cent to AU$103.5 million over the quarter, while all store sales fell 0.9 per cent due to a reduced store portfolio – having closed 8 stores since the same period in 2019.
“As we anticipated, the Christmas trading pattern changed significantly this year, with a pull forward of sales into November,” Michael Hill chief executive Daniel Bracken said.
“The Australian retail environment was particularly difficult given prevailing low consumer confidence, the competitive environment in our industry segment, together with foreign exchange and gold price headwinds.”
The business’ e-commerce offer saw significant growth during the second quarter, up 47.1 per cent on the same period last year, representing 3.3 per cent of total sales for the quarter and contributing to the 44.3 per cent online growth over the first half.