MHJ - Michael Hill International.

[winner69]

Golden boy Rob Fyfe joined Board in 2014 ….some 10 years ago

MHJ revenues back then about $500m ….now about $680m … up about 35% in 10 years not too bad eh

NPAT back then was $25m … since then from 2015 NPAT has been 28m, 21m, 34m, 5m, 17m, 3m, 49m, 52m, 38m and this year maybe 10m at best . Somewhat ironic boom years were pandemic years 2021 and 2022

Otherwise you’d have to say that during the time that Rob has had a say in things profit trends have been nothing tonwrite home about ….or haven’t gone to what the hype over the years has suggested

Maybe Rob wasn’t the golden boy after all …. the Halo Effect is an interesting study

[Goob]

They need an economics lesson; always seem to bet on a quick flip in the economy towards recovery. Recessions don't last for one quarter... Done it again in this release.

Update:
"Positive sales momentum had been expected through the second half in line with anticipated improvements in consumer
sentiment and economic conditions. Unfortunately this has not materialised."

Outlook:
“There is no doubt that consumer discretionary spend, and the fine jewellery category in particular, remain under pressure
due to macroeconomic forces. Higher interest rates are leading to a sustained and prolonged decline in consumer spending.
Looking forward, as interest rates moderate, we anticipate sales and margin recovery.”

[Goob]

The AFR article 9 days ago was perhaps another warning sign:
"Michael Hill’s luxury play"

https://www.afr.com/work-and-careers...0240503-p5fosf

[Gerald]

The AFR article 9 days ago was perhaps another warning sign:
"Michael Hill’s luxury play"

https://www.afr.com/work-and-careers...0240503-p5fosf

“We are absolutely undervalued, the business is strong, while we’re in a challenging environment, the category is under a lot more pressure than we are."

Might be going to get a whole lot more undervalued.

[winner69]

The AFR article 9 days ago was perhaps another warning sign:
"Michael Hill’s luxury play"

https://www.afr.com/work-and-careers...0240503-p5fosf

That’s a very good article

Be interesting to monitor progress along this journey and look back at this in a few yesrs time.

Withholding due respect to Bracken I remain unconvinced that this will work out

[winner69]

“We are absolutely undervalued, the business is strong, while we’re in a challenging environment, the category is under a lot more pressure than we are."

Might be going to get a whole lot more undervalued.

Another quote ..from Michael

“A business normally has about 30, 40 years and then it’s finished. If you look through history at a lot of the names when I grew up, the department stores, they’ve all gone, finished. In any business, unless it’s a major brand, [this change] is probably the only way that it can last forever, so that’s the way to go.”

Big gamble ….wonder how big this market gap is …the space between the super rich and the not so rich

[Sideshow Bob]

https://www.nzx.com/announcements/431292

Michael Hill International Limited (ASX/NZX: MHJ) provides a trading update for the 45-week period ended 12 May 2024.

Positive sales momentum had been expected through the second half in line with anticipated improvements in consumersentiment and economic conditions. Unfortunately this has not materialised, with second half sales performance broadly inline with the first half, and margin still under pressure.

• Group Sales – For the first 45-weeks of FY24, Group sales (including Bevilles) were up 4.7% on LY, and the sales for thecore Michael Hill brand were still negative to LY.FY24H1to Wk26FY24YTDto Wk45Revenue for retail operations % Var to LY % Var to LYSegment figures in local currencyAustralia segment AUD 10.2% 12.3%New Zealand segment NZD -10.3% -11.1%Canada segment CAD 0.5% -0.4%Total sales AUD 4.0% 4.7%

• Australia – The segment shows positive sales for both H1 and YTD, however this growth is driven by the inclusion of theBevilles brand in FY24 only. Sales performance in the core Michael Hill brand has improved marginally compared to thefirst half, but remains negative to last year. The Bevilles brand has also not met sales expectations and has been furtherimpacted by the relocation announcement and systems integration process.

• New Zealand – The segment remains our most challenged with deeper macroeconomic pressures significantly impactingconsumer behaviour and discretionary spend. The continued negative sales results are also driven by a decline inconsumer credit approval rates across the country and an increase in serious retail crime events impacting a number ofour stores.• Canada – This continues to be our best performing segment, broadly flat on a record prior year.

• Gross margin – In line with the first half, gross margin remains suppressed due to sustained higher input costs and recordgold pricing. All markets continue to experience aggressive promotionally led retail trading conditions, which is alsocontributing to margin pressure

.• Earnings impact – Given the compressed sales and continued gross margin decline, previously reported first half earningshave been eroded by an EBIT loss of ~$10m for FY24Q3.As the business navigates the prolonged impact of cost-of-living pressures on consumer sentiment, management areactivating initiatives to stimulate sales and restore margin. There is also a heightened focus on managing operational costsand capital expenditure. Actions have been taken to reduce costs across the business including inventory, corporateoverheads, underperforming stores and further optimisation of store rostering.

Commenting on the result, Managing Director and CEO of Michael Hill International Limited, Daniel Bracken said:“There is no doubt that consumer discretionary spend, and the fine jewellery category in particular, remain under pressuredue to macroeconomic forces. Higher interest rates are leading to a sustained and prolonged decline in consumer spending.Looking forward, as interest rates moderate, we anticipate sales and margin recovery.”

[Waltzing]

MHJ ballroom silver cuff links still going well after 20 years... purchased in Auckland.

All depends then on the product and design team of the day... well.

"Big gamble ….wonder how big this market gap is …the space between the super rich and the not so rich"

probably bigger than one images as the trickle down does not go far...

Super rich always getting richer on expansion of money supply..

Just this is a contraction period... This will test there accounting department and the design and sales team.

Daniel must be getting a lesson in the basic of a recession and he bought some up above 66..

But remember the FED said temporary inflation.....

whose going to report a loss in retail next....

SHAREGUY has made some comments over on th other channel regarding Auckland economy.

[LaserEyeKiwi]

Oof - NZ/Aus High price discretionary item retail market being absolutely destroyed by those high mortgage rates now that essentially everyone has now had their mortgages roll over to 7%+ rates.

[Toddy]

Oof - NZ/Aus High price discretionary item retail market being absolutely destroyed by those high mortgage rates now that essentially everyone has now had their mortgages roll over to 7%+ rates.

Excellent news then. That's the entire point of higher interest rates.