Michael Hill International has reported its half-year result, with growth across its three regions.
Jewellery retailer Michael Hill International has reported strong sales growth across Canada, Australia and New Zealand in its first-half result for 2026, as the company’s new chief executive prepares to share his plans in an upcoming investor day.
The retailer has recently undergone a period of transition, following the death of its founder Sir Michael Hill and former chief executive Daniel Bracken in 2025.
Now under the leadership of chief executive Jonathan Waecker, the business has returned to growth across the board.
In the six months ended December 28, 2025, Michael Hill International reported group revenue of $371 million, up 3% from $360.2m in the prior corresponding period.
Gross margin for the group was relatively flat, dropping 10 basis points to 61.2% over the half, with record high gold and silver input costs “effectively offset” by enhanced product mix, according to the group.
Earnings before interest and tax (ebit), increased 28.6% from $24.1m to $31m over the half.
The group said the uplift was primarily driven by higher sales volumes, which generated an additional $6.3m in gross profit.
Overall, the group reported a statutory net profit for the half of $22.2m, up 32% compared to $16.9m previously.
Waecker said that since joining the business in August, he has spent most of his time in stores with the group’s 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,” 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 group’s New Zealand segment has continued to return to growth, with revenue increasing 2.4% to $62m for the half, and increasing 1.8% on a same-store sales basis.
Gross margin for the half did decrease meaningfully to achieve this however, falling 60 basis points to 58.3%.
Two stores were also closed, taking store count in New Zealand to 43.
The group said the result demonstrated improving momentum in New Zealand, driven by focused go-to-market initiatives alongside a gradually strengthening economy.
Canada continues to be the group’s fastest growth opportunity, with segment revenue lifting 6.2% to C$96.3m for the half, increasing 6.1% on a same-store basis.
Unlike New Zealand, gross margin increased in the market, lifting 70 basis points to 61.5% as the region delivered another record performance.
No stores were closed during the period, keeping Canada’s store count at 82.
Australia is still the largest region for the group, with the segment reporting A$209.1m for the half, up by 2.1% and up 4.8% on a same-store basis.
Gross margin also grew in the region, lifting 20 basis points to 60.7%, with the region adding one store over the half to take its store count to 160, including 37 Bevilles stores.
The group 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, Commonwealth Bank of Australia.
Several working capital efficiencies were progressed during the half, including the negotiation of new supplier terms with a key partner, as well as the establishment of a new Auckland distribution centre, which began operating early in the financial year.
The business also reduced its inventory across the half, finishing with a positive net cash position of $20.7m, an improvement of $30.5m on the prior year.
Michael Hill International chairman Rob Fyfe said restoring a consistent and sustainable dividend to shareholders was a priority for the board, although an interim dividend was not declared.
“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,” Fyfe said.
For the first eight weeks of the second half, Michael Hill’s group sales were up 4.5%, with group same-store sales up 6% on the prior year.
Same-store sales in local currencies were positive for each of the group’s segments, with Australia up 6.5%, Canada up 13% and New Zealand up 7.1%.
Waecker said the first half demonstrated consistent execution of retail fundamentals, and was translating into improved performance for the group.
Now six months into the position, Waecker is also taking the opportunity to revisit and reset the group’s strategy.
He will host an Investor Day at its global head office in Queensland, Australia, in April to lay out his plan to build on current momentum.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.