Michael Hill (ASX:MHJ) posts “significant” earnings growth for 1H FY22

Michael Hill (ASX:MHJ) delivered record Christmas results despite the company dealing with store closures due to the rapid spread of Covid-19.

The jewellery retailer reported that all store sales were up 9.8 per cent in the second quarter of this financial year despite 2,381 lost store trading days lost. Same store sales were up 9.6 per cent compared to prior year.

Across the regions, Canada contributed the most adding 28.1 per cent to all store sales, followed by New Zealand and Australia, up 2.4 and 2.2 per cent respectively.

Disciplined inventory management, robust cost controls and strong sales led to a healthy cash position at the end of the quarter, as the company continues to review capital management strategies and explore new growth opportunities.

“From the highly engaging and emotive marketing campaign, to the deployment of new digital initiatives, excellence in supply chain and inventory management and our Christmas recruitment strategy, all came together to deliver Michael Hill’s best Q2 in the company’s history,” said chief executive officer Daniel Bracken.

Shares in Michael Hill (ASX:MHJ) are trading flat at $1.43.

Image from: https://www.michaelhill.com.au/collections