Michael Hill International (MHJ) Q1 2025 TU earnings summary

Executive summary

• Group sales increased 4.3% year-over-year for the first 14 weeks of FY25, with same store sales up 4.0%, led by strong results in Australia and Canada.

• Gross margin recovery achieved through product and brand initiatives, showing improvement since FY24H2.

• Store network enhancements included four stores with new brand design and two new Bevilles conversions, expanding the Bevilles network to 38 stores.

• Management is optimistic for the upcoming Christmas trading period, supported by new product launches and marketing campaigns.

Financial highlights

• Australia segment sales rose 6.5% (all stores) and 6.3% (same stores) in local currency compared to last year.

• Canada segment sales increased 5.7% (all stores) and 4.7% (same stores) in local currency year-over-year.

• New Zealand segment sales declined 4.8% (all stores) and 4.2% (same stores) in local currency year-over-year.

• Group sales in AUD up 4.3% (all stores) and 4.0% (same stores) compared to the same period last year.

Outlook and guidance

• Management expresses confidence heading into the Christmas period, citing positive sales momentum and new product concepts.

• New marketing campaign and product launches expected to support continued growth.