Michael Hill cuts dividend after slump in profit
Make us a preferred source
Make us a preferred source on Google
The news: Jewellery chain Michael Hill International has cut its dividend after reporting a slump in half-year profit amid difficult trading conditions.
The numbers: Net profit for the six months to 31 December 2023 was down 59% to $15.39 million, with revenue down 0.2% to $362.7 million.
The company will pay an interim dividend of 1.75 cents a share, down from 4 cents a year ago.
The context: The jewellery retailer attributed its subdued results to difficult trading conditions and weak consumer sentiment. The company had last month flagged lower earnings and margin pressure during the first half.
On Monday, it also provided a trading update for the second half. For the first seven weeks of the second half, group sales (including its recently acquired retail brand Bevilles) are up 9.5% from a year ago, with the Australia retail business driving the improvement in performance.
The source: ASX announcement
