New Zealand-born jewellery group Michael Hill has reported a bump up in sales and earnings in the first half of FY26, with margins held steady at 61.3 per cent amid surging material costs.
The group – which also manages Medley, Bevilles and its high-end brand TenSevenSeven – is expecting a double-digit lift in its comparable earnings before interest and tax (EBIT), projected to hit between $27 million and $30 million.
Michael Hill has also reported a 3.1 per cent lift in total group sales to $370.3 million. All three of the group’s key markets, being Australia, New Zealand and Canada, lifted sales over the first half.
On a same store sales basis, each in local currency, Canada continued its record growth with sales up 6.1 per cent. Australia sales grew by 4.8 per cent and New Zealand has reported its first comp sales lift since FY23.
Michael Hill group CEO Jonathan Waecker, who has held the role since August 2025, told investors that a sharper focus on execution and the early impact of actions taken to stabilise the business, helped deliver the improved financials in the first half of FY26.
“During the critical Christmas trading period, a strong focus on driving customer demand, combined with more disciplined product planning, store operations, and targeted promotional activity, delivered profitable net sales growth while maintaining margin,” Waecker said.
“This translated into a meaningful uplift in EBIT year on year, alongside disciplined working capital management, including a significant reduction in inventory, resulting in the group returning to a positive net cash position at the half.
As previously reported, Michael Hill refinanced its existing debt facility on improved margins for an additional two years, with its long-term banking partner, ANZ and introduced a new lender, CBA. The group’s net cash at the end of the first half was around $20 million, up by around $30 million last year.
“Just as importantly, these results reflect how our teams have embraced change and executed with greater focus and pace,” Waecker continued. “Across the business, our people have shown real agility, leaning into new ways of working, challenging legacy processes, and lifting the quality of execution in everything we do.”
By the end of the half, Michael Hill finished the year with a total of 285 stores, which includes both Bevilles and its namesake brand. This included a refurbishment of two flagship stores in Adelaide and Yorkdale, Toronto, and a new flagship at Bondi Westfield. Within the period, three stores were closed, with the Bevilles network remaining at 37.
Regarding the steady gross margin, Michael Hill reported record-high gold, silver and other metal input costs, being offset by an improved overall product mix and focused promotional activity.
The business is planning to host an Investor Day on April 14 at its global HQ in Cannon Hill, Queensland.