Michael Hill International (MHJ) H1 2025 earnings summary

Executive summary

• Macroeconomic pressures impacted consumer sentiment, especially in New Zealand, while Australia and Canada delivered growth and record performance despite store closures.

• Digital sales rose to AUD 30.3 million, 8.4% of group revenue, supported by omnichannel initiatives and new product launches.

• Brand refreshes, flagship store openings, and new product concepts like the Pendant Bar and lab-grown diamonds drove engagement and margin recovery.

• Statutory net profit after tax increased to $16.9m from $15.4m in the prior year period.

• No interim dividend was declared for the period.

Financial highlights

• Group revenue was AUD 360 million, down 0.7% year-over-year and flat on a constant currency basis.

• Comparable EBIT was AUD 24.1 million, reflecting higher costs and aggressive retail competition.

• Gross margin improved to 61.3%, supported by higher margin gifting products and brand initiatives.

• Digital sales accounted for 8.4% of group revenue, reaching AUD 30.3 million.

• Operating cash flow was $57.7m, up from $22.0m year-over-year.

Outlook and guidance

• For the first seven weeks of FY25H2, group same store sales up 3.2% year-over-year; Australia up 3.8%, Canada up 6.7%, New Zealand down 1.9%.

• Strategic focus remains on margin recovery, cost discipline, brand repositioning, and a review of the New Zealand segment.

• Cost reduction initiatives of ~$5m are being implemented in the second half.