MHJ - Michael Hill International

[Waltzing]

Yes but if your the out to lunch PARTNER in an Auckland Accounting firm ... you need a nice looking timer keeper... and a nice looking secretary..

[Gerald]

Interesting odd little correlation. Maybe struggling retailers cutting back on advertising will lead to tough times for NZM.

[Basil]

Ever wondered about the effects on staff of all these burglaries?  It's tough...really tough and very sad.
https://www.nzherald.co.nz/northern-advocate/news/two-worlds-collide-at-emotional-sentencing-of-whangarei-michael-hill-jeweller-robbery/7ZDS77XHHFGVFN5ZYGIVBTB6WI/

[KW]

It is with great sadness that Michael Hill International Limited (MHJ) announces the unexpected passing overnight of its Chief Executive Officer and Managing Director, Daniel Bracken as a result of an adverse reaction to medical treatment for an underlying medical condition.

[LaserEyeKiwi]

ANZ October card spending report has Jewelry spending up 12% year on year.

[Jay]

"The Beast" is for sale, thought it seems it was the Hill's and not the company that owned it

[lorraina]

Steady.?
Michael Hill International Limited (ASX/NZX: MHJ) today provides a trading update for the 26-week period ended 28
December 2025, based on preliminary and unaudited numbers.
• Comparable EBIT – FY26H1 Group comparable EBIT is anticipated to be in the range of $27m to $30m, up +12% to
+24% on LY (FY25H1: $24.1m).
• Group sales – For the half, Group sales were $370.3m (FY25H1: $359.1m) delivering growth of +3.1% on LY, and on
a same store basis of +3.8%. On a same store sales basis (in local currency), Canada achieved another record sales
performance with +6.1% growth, Australia delivered a strong sales performance up +4.8%, and New Zealand
reversed previous same store sales declines, growing by +1.8%.
• Gross margin – For the half, group gross margin is expected to be broadly flat to LY (FY25H1 61.3%), as record-high
gold, silver, and other metal input costs were offset by enhanced overall product mix and focused promotional
activity.
• Inventory levels – Group inventory levels are expected to be ~$11m lower than LY at ~$203m (FY25H1: $214m), as
part of a deliberate plan to improve working capital efficiency.
• Capital Management – As previously announced, the business successfully 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 half finished with a positive net cash position of ~$20m, an improvement of ~$30m on LY (closing net debt
FY25H1: $10m).
• Store portfolio management – The half saw the successful opening of three MH flagship stores, Rundle Mall,
Adelaide (refurbishment), Bondi Junction, Sydney (new store) and Yorkdale, Toronto (refurbishment), with all stores
incorporating our new brand design and a modernised in-store customer experience. For Michael Hill, three stores
were closed (AU: 1, NZ: 2) and one new AU store was opened, taking the network to 248 (AU: 123, NZ: 43, CA: 82).
For the half, the Bevilles (AU) store network remained at 37. The Group network was 285 stores at the end of the
half across all markets (FY25H2: 287, FY25H1: 294).
• Investor Day – The business will host an Investor Day on Tuesday 14th April 2026 at its Global Head Office in Cannon
Hill, QLD. More details will be released closer to the date.
Commenting on the result, CEO of Michael Hill International Limited, Jonathan Waecker said:
"Under new leadership, the Group delivered profitable quarter-on-quarter growth, driven by significant performance
improvements in the final 10 weeks of the half, resulting in a materially improved trading trajectory relative to the early
FY26 trading update presented at the October AGM.
"A sharper focus on execution, and the early impact of actions taken to stabilise and strengthen the business, delivered
a markedly improved performance through the half. 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. 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.
"Just as importantly, these results reflect how our teams have embraced change and executed with greater focus and
pace. 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. Stronger leadership alignment, improved operational
discipline, and a highly engaged team give us confidence in our continued focus on delivering profitable sales growth
and building momentum across all markets.
"I look forward to providing further details on our first half performance at our investor briefing on 2 March 2026."

[LaserEyeKiwi]

Nice work by the new CEO

[Cod]

Inventory at $203 mil market cap $142 mil -- seems a bit odd.

[winner (n)]

Inventory at $203 mil market cap $142 mil -- seems a bit odd.

Just highlights how CHEAP MHJ is

[Waltzing]

new CEO is from where? the warehouse? is that a good thing? other than that it could be s quick trade again a bit like SKC... since the only decent stock on the NZX is TRA...

Memory chips have now doubled in cost... IE there are trades out there . just not on the NZX... German defense stocks...

[LaserEyeKiwi]

(Note: these results are in $AUD)

FY26H1 RESULTS

SALES AND PROFIT GROWTH ACROSS ALL SEGMENTS

27 February 2026

Michael Hill International Limited (ASX/NZX: MHJ) today announced its financial results for the half year ended 28 December 2025.

Release Highlights:

• Comparable EBIT1 of $31.0m, up +28.6% on prior year.
• Group sales of $371.0m, up +3.0% on prior year.
• Same store sales (SSS) growth of +3.8% on prior year.

- Canada achieved another record sales performance with SSS growth of +6.1% on prior year.
- Australia delivered a strong sales performance with SSS growth of +4.8% on prior year.
- New Zealand reversed previous SSS declines, growing by +1.8% on prior year.

• Gross margin broadly flat at 61.2%, as increases in gold, silver, and other metal input costs were offset by enhanced overall product mix and focused promotional activity.
• Group inventory levels reduced by $11.3m to $201.9m, a reduction of -5.3% on prior year.
• Group net cash position of $20.7m at the half, a $30.5m improvement on the ($9.8m) net debt position at the prior year.
• The Board has decided that no interim dividend will be declared for the half year, however the Board intends to return to dividends at the full year results, subject to current trading conditions continuing and in line with the Company's dividend policy.

• For the first eight weeks of FY26H2, Group SSS were up 6.0% on prior year, with growth across all markets, in local currency with:

- Australian segment +6.5%
- Canadian segment +13.0%, and
- New Zealand segment +7.1%.

• Investor Day to be held at Michael Hill's Global Head Office in Cannon Hill, Qld on Tuesday 14 April 2026.

1772313073765.webp

Commenting on the Company's half year results, CEO Jonathan Waecker, said:

"Since joining the business in August, I have spent most of my time in stores and with our teams and customers. The feedback was consistent, that when we simplify how we operate, stay close to the customer and focus on retail fundamentals, performance improves.

"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. This consistent customer-centric focus has also delivered organic growth across the network, resulting in a broader customer base choosing Michael Hill.

Pleasingly, positive sales performance has continued into the first eight weeks of the second half, with group same store sales up 6%."Most importantly, this result reflects the work of our teams. Their willingness to adapt, execute consistently and build on what is working gives me the confidence that we are strengthening the business and creating a more sustainable platform for growth."

FY26H1 – Group Business Performance

The Group delivered a materially stronger operating performance in FY26H1, with comparable earnings before interest and tax increasing 28.6% to $31.0m for the half year ended 28 December 2025. The uplift was primarily driven by higher sales volumes, which generated an additional $6.3m in gross profit. This outcome reflects renewed go-to-market initiatives with product and pricing playing a key role to partially offset continued pressure from elevated input costs - particularly gold. Importantly, disciplined cost management ensured operating expenses were controlled in an inflationary environment, enhancing operating leverage and contributing to the improvement in earnings.

For the half, the Group delivered revenue of $371.0m, up 3.0%, supported by solid performances in Australia and Canada and a return to positive sales growth in New Zealand. Group same store sales increased by +3.8% in local currency, reflecting excellence in execution of product, brand and promotional initiatives.

Gross margin remained broadly in line with the prior year at 61.2%, as record high gold and silver input costs were effectively offset by enhanced product mix and disciplined pricing execution.

During FY26H1, our product initiatives played a meaningful role in supporting trading performance. The introduction of new collections including Vermeil, Lume LAB and the Earring Bar - aimed to drive customer interest and maintain brand freshness, while the continued broadening of our Pendant Bar range further enhanced the instore experience, supporting customer engagement. At the same time, our focus on showcasing exceptional quality at attainable price points strengthened our overall value proposition. Complementing these initiatives, the expansion of our curated Christmas gift sets ensured we met diverse customer needs during peak gifting periods, supporting momentum across our major markets throughout the half.

A number of working capital initiatives have been undertaken during the half including successful negotiation of new supplier terms with a key partner and a focus on improving stock efficiency leading to a reduction in inventory holdings by $11.3m to $201.9m.

During the half, the business advanced its customer experience agenda through the establishment of a new Auckland Distribution Centre, which began operating in early FY26. This investment improves fulfilment speed and accuracy, reduces time to customer, and strengthens service levels across channels.

The half saw the successful opening of three MH flagship stores, Rundle Mall, Adelaide (refurbishment), Bondi Junction, Sydney (new store) and Yorkdale, Toronto (refurbishment), with all stores incorporating our new brand design and a modernised in-store customer experience. During the half, the store network reduced by a net total of two stores, taking the network to 285 across all markets (FY25H2: 287). During the calendar year 2025, the store network reduced by a net total of nine stores (FY25H1: 294).

Retail Segment Performance

Australia (including Bevilles)

Retail segment revenue increased by 2.1% to AU$209.1m for the half, and increased by 4.8% on a same store basis, underpinned by positive growth in the Michael Hill brand.

Gross margin for the half increased by 20 bps to 60.7%.

During the half, the Australian network opened one and closed one MH store, resulting in 160 stores, including 37 Bevilles stores.

Canada

Retail segment revenue increased by 6.2% to CA$96.3m for the half, and increased by 6.1% on a same store basis.

This strong outcome reflects the continued execution of the Canadian team, delivering another record performance and demonstrating the business's ability to consistently gain market share in a competitive environment.

Gross margin for the half increased by 70 bps to 61.5%.

During the half, there was no change to the Canadian network, remaining at 82 stores.

New Zealand

Retail segment revenue increased by 2.4% to NZ$62.0m for the half, and increased by 1.8% on a same store sales basis. This result demonstrates improving momentum in New Zealand, driven by focused go-to-market initiatives and disciplined retail execution, alongside a gradually strengthening economy.

Gross margin for the half decreased by 60 bps to 58.3%.

During the half, two stores were closed, resulting in 43 stores.

Capital Management

During the half, the business successfully 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. In addition, the business remained committed to a reduced capital expenditure profile across both technology and stores, reducing the inventory profile across the business and implementing working capital efficiencies, and finished the half with a positive net cash position of $20.7m, an improvement of $30.5m on prior year (closing net debt FY25H1: $9.8m).

The Board has decided that no interim dividend will be declared for the half year.

Chair of Michael Hill International Limited, Rob Fyfe said:

"Restoring a consistent and sustainable dividend to shareholders remains a priority for the Board. Reflecting the continued improvement in the Group's balance sheet and trading performance, the Board intends to return to dividends at the full year results, subject to current trading conditions continuing and in line with the Company's dividend policy."

Investor Day

With the commencement of our new CEO, Jonathan Waecker, the business is taking the opportunity to revisit and reset the Group's strategy, which will be introduced to the market during our Investor Day to be held at its Global Head Office in Cannon Hill, Qld on Tuesday 14 April 2026.

FY26H2 Trading Update

For the first eight weeks of FY26H2, Group sales were up 4.5%, and Group same store sales were up 6.0% on prior year.

For same store sales (in local currency):

• Australian segment up 6.5%,
• Canadian segment up 13.0% and
• New Zealand segment up 7.1%.

CEO of Michael Hill International Limited, Jonathan Waecker said:

"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. "At our Investor Day in April we will provide clarity on how the business will build on its current trading momentum and deliver sustainable, profitable growth over time."

Analyst and investor call

An investor briefing on the results is scheduled for 7:30am (AEST) on Monday 2 March 2026.

Please note that the webcast page will not be available until 6:30am (AEST) and it is advised that you join at least 5 minutes before the meeting commences. Participants are encouraged to register online in advance. Once registered you will be able to download a calendar invite link.

The webcast link for the briefing call on Monday 2 March 2026:

https://meetings.lumiconnect.com/300-712-451-544

[LaserEyeKiwi]

Earnings call is live:

https://meetings.300.lumiconnect.com/r/participant/live-meeting/300712451544

[Waltzing]

Is this young warehouse boy been brought in by Rob to clean house and get the shop Back on Track...

if so like the new CFO at Sky City..

These being seen at turn arounds and the stars of the show putting them on there CV's...

Watch out for Canada economy suffering a bit going forward... could be a slow recovery for both due to OCR's being having to go up and growth or rebounds slowing down..

[LaserEyeKiwi]

Is this young warehouse boy been brought in by Rob to clean house and get the shop Back on Track...

if so like the new CFO at Sky City..

These being seen at turn arounds and the stars of the show putting them on there CV's...

Watch out for Canada economy suffering a bit going forward... could be a slow recovery for both due to OCR's being having to go up and growth or rebounds slowing down..

mentioned in earnings call in relation to growth opportunities:

NZ has approx 1 store per 100,000 people
AUS has approx 1 store per 200,000 people
Canada has approx 1 store per 500,000 people