A group of four alleged thieves wielding weapons targeted a Michael Hill Jeweller store in Dress Smart Onehunga this afternoon.
Michael Hill International’s performance has declined for 2023, following a tough year of retail pressures and crime for its New Zealand arm.
The jewellery group reported a 4.2% increase in revenue, up to A$644 million in the year to June 30, thanks to continued performance in Australia and Canada, andthe acquisition of Bevilles.
But the group posted a net loss after tax of A$479,000 for FY23, down a significant 101.4% on the from A$35.2m profit a year before.
The business also reported an earnings before interest, taxes, depreciation, and amortisation (Ebitda) of A$82.2m for FY23, down 29.4% from A$116.6m the year prior.
Michael Hill pointed to low consumer confidence, broader macroeconomic positions and higher input costs for diamond and gold as key challenges across the year.
The NZ arm of Michael Hill has reported an 11.8% decline in revenue for FY23 to $114.8m, down from $132m in 2023.
Crime played a factor in the New Zealand market, with the company saying investment in security measures across the year had a $5m direct impact on earnings.
It also forced the closure of two of its retail locations within the year.
Daniel Bracken, chief executive of Michael Hill, said it was a challenging year for the business.
Michael Hill managing director and chief executive officer Daniel Bracken said it was a challenging year for the business, but he was proud of how the team came together.
“While FY24 earnings were disappointing, with challenging economic conditions and inflationary pressures impacting consumers across all markets, the business continued to execute on its clearly articulated strategy, focus on retail fundamentals, and drive top-line sales.”
The business’ Australian arm reported the strongest performance, with its retail segment revenue increasing 10.3% to A$359.1m, up from A$331m the year prior.
The Canadian arm reported a marginal decline in its segmented revenue, down from CA$158.9m to CA$157m for the financial year.
Michael Hill had a brand refresh across its digital platforms this year, including a new logo and colour palette. It also made changes to in-store visual merchandising and packaging.
The company’s flagship “store of the future” was also launched in Chadstone, Australia, exemplifying the premium store design and experience of the refreshed retail proposition.
Model Miranda Kerr also joined the business as its first global brand ambassador.
The Michael Hill group is continuing its efforts to expand its brand portfolio. Its recent acquisition of Bevilles, which caters to the value-end segment of the jewelry market, increased its number of retail stores from 26 to 36 within the reported period.
The business has been hit especially hard with retail crime in recent years, with ram raids prevalent at several stores across the country.
Bracken said “security and safeguarding measures remain integral” for the chain.
“We have continued to review our security measures to ensure we are doing everything we can to protect our team and customers.”
With “continued offending in New Zealand”, the company rolled out new security measures, including smash-proof glass, extra fog cannons, alarm screamers, and personal alarms for staff.
DNA spray technology was also being used to protect staff and customers.
Bracken said it was “incredibly disturbing” to see the robberies continue and they would prioritise the installation of assault glass across all stores.
The group, wearing masks and clad “head to toe” in black, stormed the Michael Hill Jeweller at Westgate’s NorthWest Shopping Centre on April 28, using hammers to smash glass cabinets before making off with the loot.
Waitematā West area investigations manager Detective Senior Sergeant Megan Goldie at the time said the group was armed with hammers, an axe, and a machete and smashed their way into several glass display cabinets at the store.
