Michael Hill to get new look amid profit slide

Jeweller Michael Hill is set to get a brand refresh and open new flagship stores as part of plans to reposition itself and turnaround declining sales.

From April, Michael Hill will ditch its signature purple in favour of green and gold branding as the brand founded by Sir Michael Hill in 1979 moves to reposition itself at the higher end of the fine jewellery market.

The refresh and moves to introduce a new high value product offering has been 18 months in the making and would be followed by the opening of a flagship store, featuring private selling spaces, in Melbourne in May, which Michael Hill says will debut the brand’s first “store of the future”.

The international retailer with over 300 stores throughout New Zealand, Australia and Canada said the brand refresh would deliver an “elevated aesthetic across the brand assets, colour palette and logos”, with the new modern look set to be gradually rolled out across it digital platforms, new stores and packaging.

The new modern branding with a green and gold accents colour palette reflected the company’s New Zealand heritage and colours of the local landscape, Daniel Bracken told Stuff.

New Zealand would get its first new look Michael Hill flagship store in 2025, Bracken said. The company reported a profit after tax of A$15.4 million (NZ$16.4m) down nearly 60% on a year ago. Sales were up 4% to A$362.7m. Margins had been under pressure due to the higher cost of gold and diamonds and advertising..

The company, which owns Michael Hill and Bevilles, and new ultra luxury brand TenSevenSeven and online youth brand Medley, said retail conditions for the fine jewellery sector were challenging throughout 2023 and that had continued into the second half of the financial year, particularly in the New Zealand.

Australian sales were up 10.2% to A$202.4m in the six months, while New Zealand sales were down 10.3% to A$60.6m, compared to A$72.9m a year earlier.

However, Bracken said he believed the tide was turning for improved sales in 2025 financial year.

New Zealand was its hardest hit market, and the only market that continued to talk about further rate increases, that was no doubt impacting retail spending, said Bracken.

He said Michael Hill had spent nearly to A$4m in added security measures for its New Zealand stores in the half year period in response a rise in theft and smash and grabs in recent years. That was in addition to the A$5m spent last year, which had also dented earnings, said Bracken.

Second quarter sales were up 9.5% on prior year, with the Australian business driving the overall improvement.

“While the economic conditions and retail environment remain challenging in all markets, we are encouraged by our ongoing performance in Canada as a lead indicator, and early green shoots in Australia in the second half,” said Bracken.

Michael Hill planned to open 70 more Bevilles stores in Australia over the next three years.