Highlights

  • Michael Hill International’s Group comparable EBIT for FY26 H1 is expected between AUD 27 million and AUD 30 million, representing a 12–24% increase compared with the prior half.
  • Group sales rose 3.1% to AUD 370.3 million, with Canada, Australia, and New Zealand all contributing to same-store sales growth.
  • Inventory levels were reduced to AUD 203 million, while the Group returned to a positive net cash position of AUD 20 million at the half-year.

Michael Hill International Limited (ASX:MHJ) has released its FY26 half-year trading update for the 26-week period ended 28 December 2025, reporting improved financial metrics across key markets. Shares rose to AUD 0.42 during the trading session on 27 January 2026, following the release of preliminary and unaudited results.

In one year, MHJ’s share price has dropped by around 24%.

EBIT and Sales Show Year-on-Year Growth

The company reported Group comparable EBIT in the range of AUD 27 million to AUD 30 million, marking an increase of 12–24% compared with the same period last year (FY25H1: AUD 24.1 million). Group sales for the half reached AUD 370.3 million, up 3.1% on FY25H1 (AUD 359.1 million). On a same-store basis, Canada achieved record sales growth of 6.1%, Australia rose 4.8%, and New Zealand reversed prior declines, posting 1.8% growth.

Margins Maintained Despite Higher Input Costs

Group gross margin is expected to remain broadly flat at 61.3%, despite elevated costs for gold, silver, and other metals. The company attributed the margin stability to a combination of improved product mix and targeted promotional activity, which helped offset rising input prices.

Inventory Reduction and Strong Cash Position

Inventory levels decreased to approximately AUD 203 million, down AUD 11 million from the prior half, as part of ongoing working capital efficiency initiatives. The company also refinanced its existing debt facility with ANZ and introduced a new lender, CBA. The half-year concluded with a positive net cash position of AUD 20 million, compared with AUD 10 million net debt in FY25H1.

Store Portfolio and Operational Updates

The half-year saw the opening of three Michael Hill flagship stores in Rundle Mall (Adelaide), Bondi Junction (Sydney), and Yorkdale (Toronto), incorporating new brand design and modernised customer experiences. Three stores were closed (one in Australia, two in New Zealand) and one new Australian store opened, bringing the total network to 248 stores (Australia: 123, New Zealand: 43, Canada: 82). The Bevilles (AU) network remained at 37 stores, with a total group network of 285 stores at half-year-end.

Outlook and Investor Engagement

The company announced an Investor Day scheduled for 14 April 2026 at its global headquarters in Cannon Hill, Queensland.

The management stated that the trading update demonstrates improved performance through operational focus, disciplined inventory management, and profitable sales growth across all markets.