MHJ - Michael Hill International.

**Muse** · 19-01-2024, 10:43 AM

Originally Posted by winner69

Wonder if we will ever see what brevilles says are.

Oz sales up $19m ….when they acquired Breville they mention something like $50m annual sales

Would have to assume Michael Hill sales down ib Oz as well as NZ

Not sure - in FY23 it was tucked into the Australian segment results within the notes to the financials - but as it was only owned for 4 weeks of FY23 not surprising. Proper disclosure would see it broken out as its own segment in FY24 and onwards but that could be asking too much.

Bevilles is/was a $65m turnover / $8m EBITDA per annum business.

Core MHJ stores in australia shrunk by 5 during the 26 week period to 31 dec 23.

**Rawz** · 19-01-2024, 10:57 AM

They did say at the time of the acquisition that some new Breville stores were to replace existing MHJ stores.
In todays update they didn't mention if this occurred with the new openings/closing mix. Wonder if this is the case.

Total store count should gradually increase over the next few years one would expect

**percy** · 22-01-2024, 08:51 AM

https://sendy.tarawera.co.nz/l/J6oLV...hJqlx4PtPwk2RQ

**winner69** · 22-01-2024, 09:02 AM

Originally Posted by percy

https://sendy.tarawera.co.nz/l/J6oLV...hJqlx4PtPwk2RQ

Pretty dire headline says it all

Michael Hill Jewellers closes stores, sacks staff as profit nosedives

Hard to see them making much profit FY24 …….maybe npat $15m to $20m …..say eps of 5-6 cents

Maybe a cyclical stock but if it is the company always seems a way to disappoint

**LaserEyeKiwi** · 22-01-2024, 09:10 AM

Originally Posted by winner69

Pretty dire headline says it all

Michael Hill Jewellers closes stores, sacks staff as profit nosedives

Hard to see them making much profit FY24 …….maybe npat $15m to $20m …..say eps of 5-6 cents

Maybe a cyclical stock but if it is the company always seems a way to disappoint

$15-20m NPAT - are you talking for the H1 or FY??

**winner69** · 22-01-2024, 09:23 AM

Originally Posted by LaserEyeKiwi

$15-20m NPAT - are you talking for the H1 or FY??

Full year …just my quick sums

May about $20m is better guess

Last 12 months Comparable EBIT about $36m …..can’t see things getting better through to June

**Goob** · 22-01-2024, 10:25 AM

I'm just very skeptical of the Breville's acquisition.

4 new Beville's stores in Australia in the six months, up from 26. So 15% store count growth in a single half. In the same period 5 under-performing Michael Hill stores were closed in Australia. A detailed breakdown of this store mix would be very interesting to see as, at a glance, it does seem like cannibalisation.

Seems management intend to follow through on the plan to 3-4x the Beville's store count by FY28 (80-100), in a macro environment where LFL AU store sales are probably run-rating at negative mid to high single digit %s (and likely getting worse?). Let's not forget Beville's is no crown jewel and had its own troubles 10 years ago (went into administration after a change to the store footprint strategy https://www.jewellermagazine.com/Art...since-collapse).

For me, at least a positive in that update was slight growth in Canada.