Michael Hill International Limited

Overview

The Michael Hill story began in 1979 when Sir Michael and his wife Christine opened their first store in the New Zealand town of Whangarei, some 160 kilometres north of Auckland. Since then, the company growth has been guided by a unique retail jewellery formula. Through dramatically different store designs, a product range devoted exclusively to jewellery and development of high impact advertising, Michael Hill Jewellers rose to national prominence. In 1987 Michael Hill International was listed on the New Zealand Stock Exchange, the same year the Group expanded into Australia.

In 2002, Michael Hill expanded into North America, opening its first stores in Vancouver, Canada. The Canadian presence now includes stores in British Columbia, Alberta, Manitoba, Saskatchewan and Ontario.

Exclusive jewellery collections available at Michael Hill stores include Michael Hill Designer Bridal, Infinitas, Everlight and Spirits Bay.

Performance

The following information was extracted from Michael Hill International Limited's full year results, released 31 August 2026.

FY26 RESULTS MICHAEL HILL TURNAROUND DELIVERS RECORD REVENUE, EBIT1 UP 57%, DIVIDEND RESTORED

Michael Hill International Limited (ASX/NZX: MHJ) today reported its results for the financial year ended 28 June 2026, delivering strong same store sales growth across all segments, a 57% increase in comparable EBIT, and the restoration of dividends.

RELEASE HIGHLIGHTS

• Group revenue reached a record $655.7m2 (FY25: $643.7m), up 1.9% on prior year, and up 4.1% on a constant currency basis.

• Same store sales3 (SSS) growth of 3.0% on prior year, and 5.2% on a constant currency basis with the first half momentum continuing through the second half:

o Canada delivered another record performance, with SSS up 7.0% on prior year.

o Australia delivered a strong performance, with SSS up 4.8% on prior year.

o New Zealand delivered a marked acceleration from Q2, with SSS up 3.6% on prior year.

• Online sales grew to 8.7% of total sales.

• Gross margin4 held flat at 60.5%, demonstrating the Group's ability to offset elevated precious metal costs while consumers continue to navigate cost-of-living pressures.

• Cost of Doing Business5 (CODB) as a percentage of revenue is down 70 bps to 57.1% (FY25: 57.8%).

• Comparable EBIT1 of $24.0m (FY25: $15.3m), up 57% on prior year.

• Statutory Net Profit After Tax (NPAT) of $10.0m (FY25: $2.1m), up 376% on prior year.

• Group inventory levels reduced by $9.4m to $189.7m, a reduction of 4.7% on prior year.

• Group net debt position of $5.5m (FY25: $41.9m), a $36.3m improvement on prior year.

• Final dividend declared of 2.0cps (FY25: nil).

FY26 – GROUP BUSINESS & FINANCIAL PERFORMANCE

FY26 marked the beginning of a significant strategic and operational turnaround for the Michael Hill Group. Under new leadership, the Group has undertaken a strategic simplification of the business, sharpening its focus on its two core brands, Michael Hill and Bevilles. Building on this simplification, the Group has strengthened retail operating discipline and decision-making, refined its go-to-market strategies and strengthened its focus on customer outcomes. Together, these initiatives have generated meaningful momentum across the business and underpinned the improved performance delivered in FY26.

The Group delivered a materially stronger operating performance in FY26, with comparable earnings before interest and tax (EBIT) increasing 57% to $24.0m (FY25: $15.3m) against a challenging macroeconomic environment. The result reflected stronger sales, resilient gross margins despite elevated gold input costs, and disciplined management of operating expenses in an inflationary environment. These factors combined to improve operating leverage, increase cash generation and strengthen returns.