374722.pdf (nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com)
Michael Hill International Limited (ASX/NZX: MHJ) is pleased to provide its trading update for the year ended 26 June2022.
KEY POINTS
• Continued positive quarterly sales growth – For the quarter, all store sales were up 17.0% and same store sales were up 2.1% against prior year.• Strong full year sales – For the year, all store sales were up 7.3% (with lost store trading days of ~10,000 in both FY21 and FY22) and same store sales were up 8.0%, against prior year.
• Sustained margin expansion – For the year, margin improvement has continued with a lift of between 150 to 350bps in all markets and channels against FY21. • Strong EBIT growth – The Company anticipates a FY22 Group comparable EBIT of between $60m to $63m(FY21: $56.6m).
• Record digital sales – Omni-channel initiatives continue to deliver strong growth, resulting in another record year,with sales exceeding $40m, an increase of 23% on prior year. Digital sales now represent 7.1% of total sales(FY21: 6.3%).
• Brilliance by Michael Hill – The loyalty program, a key enabler for growth, now exceeds 1.4 million members.
• Strong balance sheet – Disciplined working capital management maintained throughout the year with no adverse supply chain impacts on stock levels, and a healthy net cash position at year end of ~$95m (FY21: $72.4m).
• Store portfolio management – Three under-performing stores permanently closed in Australia during the quarter,with a network total of 280 stores across all markets at the end of the year (FY21: 285).