Michael Hill increases first-half profit 32%, sales up 3%
Monday, 2 March 2026
Michael Hill International increased it profitability and sales in its first six months of the current financial year.
The jeweller, with stores across New Zealand, Australia and Canada, saw its sales revenue increase 3% to $370 million and its after-tax profit increase 32% to $22.2 million in the first half of FY26 to December 29.
Sales in Canada boosted the company’s earnings, a record, up more than 6% in the period. Meanwhile sales in Australia increased 4.8% and sales locally increased 1.8%.
Read more:
Despite increasing its sales and profit, the board said it had decided not to declare a dividend in the period, and would instead return to dividends at its full year result.
The company said given the recent appointment of new chief executive CEO Jonathan Waecker, it was taking the opportunity to revisit and reset the group’s strategy, which would be revealed to the market during the company’s investor day on April 14.
Waecker said Michael Hill delivered a “materially stronger operating performance” in the period.
This was attributed to higher sales volumes, which generated an additional $6.3m in gross profit, and was the result of “renewed go-to-market initiatives with product” and pricing to partially offset continued pressure from elevated input costs in precious metals, 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,” the company said in a trading update.
A number of working capital initiatives were undertaken in the six months, including new supplier terms with a key partner and the company focused on improving stock efficiency, leading to a reduction in inventory holdings by $11.3m to $201.9m, it said.
On the outlook for Michael Hill, Waecker said the company remained “mindful of current economic conditions”, but the first half result “demonstrated that consistent execution of retail fundamentals” was 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.”
Michael Hill chair 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.”