Michael Hill International (MHJ) Q4 2024 TU earnings summary

Executive summary

• FY24 saw challenging retail conditions, especially in fine jewellery, but recent weeks showed positive sales momentum across all markets and channels.

• Group sales for the year, including Bevilles, rose 3.8% year-over-year, with H2 sales up 4.9% and the last seven weeks up 6%.

• EBIT is expected between $14m and $16m, in line with analyst expectations.

• Digital sales returned to double-digit growth, supported by a website re-platform and brand relaunch.

Financial highlights

• Group sales reached AUD 641.4m, up 3.8% from AUD 617.8m in FY23.

• Gross margin settled at approximately 60.5% for the year.

• FY24 year-end net debt position was around $40m.

Outlook and guidance

• Trading conditions are expected to remain challenging, but initiatives are underway to drive sales, enhance margin, and reduce capital expenditure.

• Focus remains on inventory optimisation and embedding cost discipline.