Highlights

  • Michael Hill reported 3.0% revenue growth during H1 FY26.
  • Comparable EBIT increased 28.6% while statutory profit rose 32.0%.
  • Same-store sales improved across Australia, Canada and New Zealand.
  • The company continues simplifying its brand portfolio and targeting improved operating margins.

Michael Hill International Limited (ASX:MHJ) remained in focus after its shares traded higher on 23 July 2026. While no confirmed company announcement was released on the day, investor attention has recently centred on the jewellery retailer's improved first-half FY26 financial performance and ongoing business transformation strategy.

The company continues simplifying its operations while focusing on store productivity, digital growth and long-term margin improvement across Australia, New Zealand and Canada.

First-Half Earnings Improved

For the six months ended 31 December 2025, Michael Hill reported revenue of approximately A$371.0 million, representing 3.0% growth from the prior corresponding period.

Comparable EBIT increased 28.6% to approximately A$31.0 million, while statutory net profit after tax rose 32.0% to approximately A$22.3 million.

The company also maintained a gross margin of approximately 61.2%, despite ongoing cost pressures within the retail environment.

Inventory declined to approximately A$201.9 million, while the business ended the period with a net cash position of around A$20.7 million.

Sales Growth Recorded Across Key Markets

Michael Hill reported same-store sales growth of 3.8% in local currency during H1 FY26.

Canada delivered the strongest regional performance, while Australia also recorded growth and New Zealand returned to positive comparable sales.

Digital sales continued expanding faster than total group sales, supported by online initiatives and click-and-collect services.

The company also opened a new Auckland distribution centre to improve inventory management and fulfilment capabilities.

Business Simplification Continues

At its 2026 Investor Day, Michael Hill outlined plans to simplify its Australian retail portfolio.

The company intends to reduce its Australian brand portfolio from five brands to two, while continuing the integration and repositioning of the Bevilles business acquired in 2023.

Management also outlined initiatives aimed at improving store productivity, customer engagement, gross margins and operating efficiency, alongside a longer-term objective of achieving a 10% EBIT margin.

No interim dividend was declared for H1 FY26, with the company prioritising balance sheet strength before considering future shareholder distributions.

Transformation Strategy Remains Underway

Michael Hill continues progressing its operational reset while focusing on profitable growth across its three operating markets.

Future updates are expected to provide further information on sales performance, margin improvement, brand simplification and capital management.

Although the company's shares traded higher on 23 July 2026, no verified evidence directly linked the intraday share-price movement to a specific corporate announcement.

What Investors May Watch

Investors may monitor same-store sales trends, progress on brand simplification, operating margins, digital sales growth, dividend decisions and future financial updates.

Risks

Michael Hill remains exposed to consumer spending patterns, jewellery demand, precious metal prices, foreign exchange movements, retail competition and broader economic conditions.