New Zealand-born jewellery group Michael Hill International has reduced its total store count from 297 in the first 16 weeks of FY25 to 284 in the first 16 weeks of FY26.
This comes after Country Road, General Pants and Kathmandu have also reported a reduced store network over the last year, with some citing higher costs of leasing for the reductions.
At the end of FY25, Michael Hill's store count was 287, indicating three closures in early FY26. Michael Hill's total store count in FY24 was at 300. These numbers include Michael Hill's Bevilles stores.
Despite the 4.4 per cent reduction in store numbers, total group sales for Michael Hill International – which also includes Medley and TenSevenSeven – fell 1.3 per cent in the same 16 week period compared to the same time last year.
Alongside the slip in sales, Michael Hill pointed out that its group gross margin has recovered by 100 basis points in the same time frame, with group same store sales flat on prior year.
Australian same store sales lifted just 0.7 per cent, with Canada up 4.1 per cent. New Zealand is more subdued, with same store sales down 6.2 per cent.
After sharing the news during its AGM, Group CEO Jonathan Waecker said the group remains focused on inventory management, capital and operational cost control, along with optimisation of store rostering.
“As we prepare for the all-important Christmas Trading period, we are encouraged by a year on year 100 basis point uplift in group gross margin in the first 16 weeks,” Waecker said. “Additionally, our Canada segment – our second largest market – continues to deliver record-breaking sales performance, reinforcing its role as a key growth engine.
“Our focus remains firmly on delivering innovation, customer experience, and retail execution across our markets.”
Initiatives set by the brand over the next few months include introducing new collection, such as Vermeil, Lume LAB, and an Earring Bar. It will also developed its Pendant Bar Collection further, alongside improved in-store experience.
They also plan to expand its gifting offer with Christmas gift sets designed to meet diverse gifting needs.
Alongside this, Waecker confirmed that its peak trading period will also be buoyed by a revised store footprint. This includes the recent opening of a refurbished flagship in Rundle Mall in Adelaide, as well as a new store opening Bondi, Sydney later this month, and another refurbished store in Yorkdale, Canada.
“These initiatives position us strongly for the festive season, reinforcing our commitment to product leadership, customer experience, and market growth,” Waecker said.
The early FY26 results for the Michael Hill group follow a challenging FY25. Earlier in his address, Waecker said that the last financial year saw global economic uncertainty and challenging retail trading conditions persisting across all its markets, with New Zealand particularly challenging.
“However, pleasingly our two largest segments still delivered growth, with Canada delivering another record sales performance,” Waecker said. “The second half saw an improvement in same store sales across all segments, with FY25 H2 Group same store sales up 2.4 per cent. In addition, the business saw productivity lift with sales per hour increasing by 5 per cent for the year, as the business maintained its focus on wage control.
“Our omni-channel offering continues to be a key strategic focus for the group, with further maturity across ship from store, click & collect, and virtual selling, which saw digital sales grow 6 per cent, to over $50 million, for the first time.”
For FY25, Michael Hill reported a total revenue of NZ$644 million, broadly flat on the prior year.
Waecker reported a few headwinds in FY25, including aggressive promotional trading conditions and record high gold prices, which he noted were largely offset by the introduction and mix of higher margin product.
“Accordingly, gross margin of 60.5 per cent was broadly flat to last year,” Waecker said.
“Inflationary cost pressures continued to impact operating expenses across the business, particularly store labour and occupancy costs. During the second half, management took decisive action to reduce operating costs, discretionary spend, corporate roles and overheads, which enabled full year earnings to close broadly flat to the prior year.
“Even with gold reaching record highs throughout the year, continued active management of inventory, including the introduction of new product offerings, saw year-end inventory holdings close at 199 million dollars.
“Year-end net debt closed broadly in line with prior year at 42 million dollars.”