Michael Hill International (MHJ) H1 2025 earnings summary

Executive summary

• Group revenue for FY25H1 was $360.2m, down 0.7% year-over-year and flat on a constant currency basis, with Australia and Canada segments growing and New Zealand facing challenges.

• Comparable EBIT was $24.1m, at the upper end of guidance but down from $31.3m in FY24H1, impacted by higher costs and aggressive retail competition.

• Statutory net profit after tax rose to $16.9m from $15.4m year-over-year.

• Digital sales grew to $30.3m, representing 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.

Financial highlights

• Group revenue was $360.2m, down 0.7% year-over-year and flat on a constant currency basis.

• Gross margin improved to 61.3% (up from 60.6% year-over-year), supported by higher margin gifting products and brand initiatives.

• Comparable EBIT was $24.1m; reported EBIT rose to $32.4m due to one-off items.

• Digital sales reached $30.3m, 8.4% of group revenue.

• Inventory reduced by $6.6m to $213.2m; net debt at period end was $9.8m.

Outlook and guidance

• For the first seven weeks of FY25H2, group sales were up 1.7% and 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, sustainable growth, and a review of the New Zealand segment.

• Cost reduction initiatives of ~$5m are being implemented in H2.