Retail group Michael Hill is expecting a strong double-digit uplift in its earnings before interest and tax, off the back of modest sales across its three core markets – Australia, New Zealand and Canada.
In its preliminary FY26 trading update this morning, the company reported a total group sales lift of 2 per cent, hitting $654.7 million. This includes both Michael Hill and Bevilles.
All three markets saw sales growth, with Canada in the lead at 7.3 per cent. Australia – the group’s largest market – was up 2.4 per cent, and New Zealand grew 3.1 per cent.
Same-store sales growth was also recorded across Australia, Canada and New Zealand – up 4.8 per cent, 7 per cent and 3.6 per cent respectively.
For Australia in particular, the group shared that this was a strong performance for the full year.
The sales uplift helped drive a group-wide comparable EBIT lift of between 44 per cent and 57 per cent, set to hit within the range of $22 million and $24 million. Michael Hill also cited strong margins and disciplined cost management for the uplift, despite the inflationary environment.
“I’m pleased with our FY26 performance, as it was particularly encouraging to see same-store sales growth across all markets, significantly accelerating in Canada and New Zealand in the second half,” Michael Hill Group CEO Jonathan Waecker said.
“Our profitable growth reflected the passion of our team members and the exceptional way they served our customers throughout the year.”
During the year, eight stores across the group portfolio were closed, including four in Australia, and two each in Canada and New Zealand. Two new stores were opened in Australia and Canada, bringing the total network to 281 – a net dip of 6 stores.