Michael Hill International (MHJ) Q2 2025 TU earnings summary

Executive summary

• Group sales for FY25H1 were $359.1m, down 1% year-over-year and flat on a constant currency basis.

• Comparable EBIT is expected between $22.5m and $24m, down from $31.3m in FY24H1.

• Challenging macroeconomic conditions, especially in New Zealand, impacted discretionary retail trading.

• Canada achieved record same store sales growth (+2.7%), Australia saw modest growth (+0.6%), while New Zealand declined (-7.8%).

Financial highlights

• Group gross margin expected at 61% to 61.5% for the half, up from 59.5% in FY24H2, showing margin recovery.

• Digital sales grew, representing 8% of total Group sales.

• Inventory levels well-managed, down ~$5m year-over-year to ~$215m.

• Net debt at ~$10m, slightly below last year’s $12m.

Outlook and guidance

• Management identified ~$5m in cost reductions for the second half, aligning resources to strategic priorities.

• Early January trading shows strong positive sales momentum, especially in Canada.