Jewellery retailer Michael Hill’s bottom-line performance improved in the first half of FY26, with a 32 per cent lift in its net profit after tax (NPAT) to $22.3 million.
This comes off the back of a 3 per cent lift in total sales across the group – which also includes low-price retailer Bevilles, its niche brand Medley and luxury subsidiary TenSevenSeven – with total sales hitting $371 million.
Across each market, Australian retail sales – including Bevilles – rose 2.1 per cent to AU$209 million, with same-store sales up 4.8 per cent.
The group’s Canadian retail segment revenue increased by 6.2 per cent to CA$96.3 million for the half, and up by 6.1 per cent on a same-store basis.
Meanwhile, New Zealand retail sales lifted 2.4 per cent to NZ$62 million and reversed previous declines in same-store sales, now up 1.8 per cent in the first half of FY26.
The Michael Hill group ended the first half with 9 fewer stores compared to the same period in FY25, now at 285. 160 of these are in Australia, including 37 Bevilles stores, 82 in Canada and 43 in New Zealand.
Comparable earnings also grew across the group, lifting 28 per cent to $31 million. Despite the rise, the group’s gross margin slipped by 10 basis points to 61.2 per cent, primarily driven by its New Zealand market and offset by rises in Canada and Australia.
Michael Hill added the slight slip in group gross margin was also due to increases in gold, silver, and other metal input costs, but offset by enhanced overall product mix and focused promotional activity.
The group has also reversed its net cash position from a negative $9.8 million at the end of the first half of FY25 to $20.7 million in the first half of FY26.
Group CEO Jonathan Waecker, who took the lead role in August 2025, said his focus since joining the business was talking with staff and customers across the network.
“The feedback was consistent: that when we simplify how we operate, stay close to the customer and focus on retail fundamentals, performance improves,” Waecker said. “Over the half, we acted on that by tightening our product focus, improving our go-to-market, clarifying expectations in stores, and improving how we communicate across our teams.
“Momentum built through the Christmas trading period, and we saw that come through in stronger sales and improved comparable EBIT.”
The sales drive continued in the early second half, with group same-store sales up 6 per cent, driven by a 13 per cent lift in Canada, a 6.5 per cent lift in Australia and a 7.1 per cent rise in New Zealand – each in local currency.
“While we remain mindful of current economic conditions, the first half demonstrates that consistent execution of retail fundamentals is translating into improved performance for the group,” Waecker said.
“At our Investor Day in April we will provide clarity on how the business will build on its current trading momentum anddeliver sustainable, profitable growth over time.”