What's ahead for Michael Hill after deaths of CEO and founder?

Saturday, 9 August 2025

The deaths of Michael Hill CEO Daniel Bracken and namesake company founder Sir Michael Hill are not expected to impact the international jewellery business in the short term.

Hill, who had been leading the company in a creative capacity and for many years sat on the board, died last month at the age of 86 following cancer treatment.

He was described by Prime Minister Christopher Luxon as inspirational, having started the business at age 41. “Sir Michael Hill’s aspiration, grit, and determination to succeed not only built a globally recognised brand, but also inspired generations of Kiwi entrepreneurs to dream big.”

Bracken, who had an extensive retail background, joined Michael Hill as chief executive in 2018 and has been credited for turning around the company’s fortunes and diversifying its portfolio. He died unexpectedly in February after a reaction to medical treatment for an undisclosed medical condition, aged 57.

Jeremy Hutton, equities analyst at Milford Asset Management, said two leaders of the same company dying within a short span of time was no doubt a “tough situation” and he felt for the company.

A Michael Hill spokesperson described recent months as “a very sad time”.

The Michael Hill board has begun a global search for a permanent chief executive. Former chief financial and supply chain officer Andrew Lowe was appointed in the interim, a week after Bracken’s death.

Daniel Bracken had an extensive retail background and was appointed chief executive and managing director of Michael Hill in 2018. He is remembered as a “visionary leader” and beloved father of five.

Michael Hill was contacted for comment, but said it was too soon to respond to The Post’s questions about the recruitment process.

The international jewellery business that operates across New Zealand, Australia and Canada is set to post its financial results for the year ending June 29 later this month, on August 22.

The result is expected to be flat, with earnings before interest and tax in the range between $14 million and $16m - in line with its annual financial results last year.

In a sales update for the first half of the year, the company said its New Zealand sales were down 5% on the same time a year earlier, with trading conditions better in Australia and Canada.

Hutton said the New Zealand retail market remained tough for companies across a wide range of industries, and he expected Michael Hill’s financials to follow the same trend as other large retail companies.

Rob Fyfe describes Sir Michael Hill as a force of nature — a quirky, passionate visionary who inspired thousands to aim higher, live boldly, and back themselves.

“What we’ll see is indicative of where everything is at in New Zealand retail land. People were expecting a bit more recovery with interest rates coming down but that hasn’t filtered through yet. The job market is still very weak. We need more rate cuts and more job security in order to see big [sales] rebounds in big retail names”.

More spending and therefore any improvement in retail company earnings were expected to begin towards the end of the year, he said.

Michael Hill’s share price has performed well over the medium term, but the last 12 months have been tough for the discretionary goods business.

Its share price was down 20% over the past year, and down 27% so far in 2025.

Hutton said he believed that reflected disappointment that sales performance recovery had not come as soon as expected.

Devon Funds retail analyst Greg Smith said Michael Hill’s preliminary financial figures released last week were “relatively resilient” despite challenging conditions.

“They talked about it being disappointing, but we're in a very tough environment.

Michael Hill has been rolling out a new modern look to its stores over the past year.

“It’s been a tough environment in New Zealand, getting tougher in Australia and Canada has been a bit of a bright spot [for them],” Smith said.

Sales were flat for the full year, but up 2.4% for the second half, which was encouraging, he said.

Michael Hill had been dealing with record gold prices, and was having to discount like most retailers to make sales, he said.

“All things considered, you could say it's going to be quite a resilient result.”

Smith said he anticipated the next few months would continue to be challenging as the company also navigated changes to its executive team.

“It’s very sad that the founder and the CEO passed on in a relative short succession. But the company will now need to rebuild and move on from that. Michael Hill leaves behind a great legacy. It’s still a great brand, and will likely continue to be so.

“They'll certainly be going through a bit of a rebuilding phase in terms of management. But the numbers themselves actually tell a relatively resilient story, and it has been tough in New Zealand for some time.”

Smith said there was a broader hope that this earning season would be the bottom for corporate earnings. “The next six months or so, things might be a bit brighter in New Zealand, with [more expected] rate cuts.”