Michael Hill International (ASX:MHJ) announces full year results

Michael Hill International (ASX:MHJ) announced financial results for the full-year ended 29 August 2022.

Group operating revenue increased by 7.0% to $595.2m (FY21: $556.5m), with ~10,000 lost store trading days in each of FY22 and FY21.

Comparable earning before interest and tax (EBIT) increased by 11.1% to $62.9m (FY21: $56.6m).

Statutory net profit after tax increased by 13.9% to $46.7m (FY21: $41.0m).

Group gross margin increased by 200 bps to 64.7% (FY21: 62.7%), underpinned by our strategic initiatives.

Healthy inventory levels to support elevated sales at $181.5m (FY21: $171.2m).

Balance sheet benefited from strong operating cashflows and sale of the Canadian credit book, resulting in a closing cash position of $95.8m (FY21: $72.4m).

Final dividend of AU4.0 cents per share declared, delivering total dividends for the year of AU7.5 cents per share.

Board announces launch of an on-market share buy-back of up to 5% of the Company's issued capital.

Group same store sales were up 8.0% for the year, with Canada +11.3%, New Zealand +8.9% and Australia +4.2%.

Digital sales increased by 23% to a record $42m, representing 7.1% of total sales, up from 6.3% last year.

New pure play brand Medley delivered over $1m in sales for its first full year trade.

Loyalty strategy continues to deliver with 76% of sales from members.

Extensive H1 temporary store closures in NSW, VIC and Auckland, culminated in 10,020 lost trading days for the year (FY21: 10,447).

One new store opened and six under-performing stores were closed during the year, giving a network total of 280 stores at year end (FY21: 285).

In the first eight weeks of FY23, the Company has delivered strong early performance, with Group all store sales up 13.4% against period in FY21.

Following the announcement the company?s share price rose 0.448%.