Michael Hill International (MHJ) investor relations material

Executive summary

• Profitable growth achieved in H1 FY26, with comparable EBIT up 28.6% to $31.0m, driven by revenue growth, improved execution, and stable gross margins across all markets.

• All three markets—Canada, Australia, and New Zealand—contributed positively, with Canada reaching record sales and SSS growth of 6.1%, Australia SSS up 4.8%, and New Zealand SSS up 1.8%.

• Operational focus included simplifying processes, customer-centric strategies, disciplined promotional activity, and product innovation, including new collections and enhanced in-store experiences.

• Opened and refurbished flagship stores in Australia and Canada, and transitioned to a new distribution centre in New Zealand, enhancing customer engagement and supply chain efficiency.

• No interim dividend declared; Board intends to resume dividends at full year results, subject to trading conditions.

Financial highlights

• Group revenue increased 3.0% year-over-year to $371m, with same store sales up 3.8%.

• Gross margin held at 61.2%, with higher input costs offset by promotional activity and improved product mix.

• Net cash position improved to $20.7m from net debt of $9.8m, aided by working capital initiatives and supplier term renegotiations.

• Inventory reduced by $11.3m to $201.9m, reflecting tighter discipline.

• Net profit after tax attributable to members was $22.26m, up 32.0% year-over-year.

Outlook and guidance

• Early second half trading shows continued momentum: total group sales up 4.5%, same store sales up 6.0% in the first eight weeks.

• Australian SSS up 6.5%, Canadian SSS up 13.0%, and New Zealand SSS up 7.1% in early FY26H2.

• Board intends to reinstate dividends at full-year results, subject to trading conditions.

• Investor Day scheduled for April 2026 to provide further strategic updates.