Key Highlights

  • Group same store sales rose 6.6% on the prior year in constant currency over the first 16 weeks of FY27.
  • Measured in Australian dollars, group same store sales were up 2.3%.
  • Canada led the segments at +11.3% in local currency, ahead of New Zealand at +7.1% and Australia at +4.0%.
  • Gross margin held in line with the prior year, supported by disciplined pricing and retail execution.

Michael Hill International Limited (ASX:MHJ) has told investors that group same store sales were up 6.6% on the prior year on a constant currency basis across the first 16 weeks of the 2027 financial year. The update was incorporated into the company's Annual General Meeting presentation on 22 October 2026.

Measured in Australian dollars, the same period showed an increase of 2.3%. The company described the result as driven by performance across all segments, and the figures are unaudited. The first measurement point in the update is week 8 of the financial year and the second is week 16, so the later reading includes the earlier eight weeks.

Segment Sales Progress Between Week 8 and Week 16

Each of the three trading segments reported growth in local currency, and each improved between the week 8 and week 16 measurement points. Canada posted the largest gain, with same store sales rising from 9.8% at week 8 to 11.3% at week 16. Australia moved from 1.7% to 4.0%, while New Zealand advanced from 3.3% to 7.1%.

In percentage-point terms, Canada's growth rate widened by 1.5 points over the eight weeks between the two readings, Australia's by 2.3 points and New Zealand's by 3.8 points. Australia recorded the lowest local currency growth at both dates, although its week 16 figure was more than double the week 8 result. New Zealand's week 16 figure was also more than double its week 8 result, while Canada's rose by about 15% in relative terms.

Same store sales are defined by the company as sales through store and online channels on a comparable trading day basis. The group figure is quoted two ways, with 6.6% on a constant currency basis and 2.3% in Australian dollars, while the segment figures in the table are stated in each segment's local currency: Canadian dollars, Australian dollars and New Zealand dollars.

Margin and Product Ranges

The update also covers profitability at the gross margin level. Gross margin is holding in line with the prior year, according to the company, which pointed to disciplined pricing and retail execution along with refreshed go-to-market campaigns. The update did not give a margin percentage, so the comparison is described only as level with last year.

In the update, Michael Hill also referred to new colour, bridal and tennis bracelet ranges. Each has been supported by new go-to-market campaigns and in-store events, which the company said are bringing in new customers and bringing back existing ones. Management expects continued profitable growth through the year, a statement the company made without quantifying a profit figure or a margin level. The refreshed campaigns and in-store events are therefore the main product-side initiatives cited alongside the sales results.

Chief Executive Commentary and Footprint

Chief Executive Officer Jonathan Waecker said the company was encouraged by the momentum building across the group. He said the product offer has improved, the go-to-market campaigns are resonating, teams are energised, and the business is executing with greater consistency. He described Christmas as the most important trading period and said that, despite an uncertain economic environment, the company is optimistic about the opportunity. His stated focus is to execute the plan well and deliver a fantastic Christmas for customers.

The company's description of itself adds some background. Michael Hill was founded by Sir Michael Hill in 1979, when he opened his first jewellery store in Whangarei, New Zealand. The group now operates 279 stores across Australia, New Zealand and Canada, with its global headquarters, including wholesale and manufacturing divisions, in Brisbane. It is listed on both the ASX and the NZX under the code MHJ.

Summing Up the Trading Update

Across the first 16 weeks of FY27, Michael Hill reported same store sales growth of 6.6% in constant currency and 2.3% in Australian dollars, with all three segments ahead of the prior year. Canada recorded +11.3%, New Zealand +7.1% and Australia +4.0% in local currency, each higher than at week 8. Gross margin was reported as level with the previous year, and management expects continued profitable growth through the year across its 279 stores. The chief executive pointed to Christmas as the most important trading period still ahead, and the company's headquarters in Brisbane house its wholesale and manufacturing divisions alongside group functions.