Highlights

  • Michael Hill shares rose 2.86% to NZD 0.54 on 2 March 2026 following the release of FY26H1 results.
  • Group revenue for the half year ended 28 December 2025 (FY26H1) increased 3.0% to AUD 371.0m.
  • Comparable EBIT for FY26H1 climbed 28.6% to AUD 31.0m.
  • Group same store sales for FY26H1 grew 3.8% year-on-year.
  • Net cash position improved to AUD 20.7m in FY26H1 from a net debt position of AUD (9.8m) in FY25H1.

Michael Hill International Ltd (NZX:MHJ) shares moved 2.86% higher to NZD 0.54 during the afternoon session on 2 March 2026, after the company reported its financial results for the half year ended 28 December 2025 (FY26H1).

The stock remains up approximately 31.71% over the past six months and 10.20% over the past year. Today’s price momentum follows the release of improved first-half earnings, positive same store sales growth across all markets and a strengthened balance sheet position.

Earnings Expansion Supported by Sales Momentum

For FY26H1, Group revenue rose 3.0% year-on-year to AUD 371.0m, supported by favourable performances in Australia and Canada and a return to positive growth in New Zealand. Group same store sales increased 3.8% in FY26H1 compared to FY25H1, reflecting execution of product, brand and promotional initiatives.

Comparable EBIT for FY26H1 increased 28.6% to AUD 31.0m. The uplift was primarily driven by higher sales volumes, generating an additional AUD 6.3m in gross profit, alongside disciplined cost management in an inflationary environment, which enhanced operating leverage.

Statutory NPAT for FY26H1 rose 32.0% to AUD 22.3m, compared to AUD 16.9m in FY25H1.

Gross margin for FY26H1 remained broadly stable at 61.2%, compared to 61.3% in FY25H1, as elevated gold, silver and other metal input costs were offset by improved product mix and focused pricing execution.

Inventory Reduction and Balance Sheet Improvement

Group inventory reduced by 5.3% in FY26H1 to AUD 201.9m, down AUD 11.3m from FY25H1, reflecting working capital initiatives and improved stock efficiency.

The balance sheet strengthened materially, with the Group reporting a net cash position of AUD 20.7m at the end of FY26H1. This represents a AUD 30.5m improvement compared to the net debt position of AUD (9.8m) in FY25H1.

During the half, the company refinanced its debt facility on improved margins for an additional two years with ANZ and introduced CBA as a new lender. No interim dividend was declared for FY26H1, although the Board indicated its intention to return to dividends at the full-year results, subject to trading conditions.

Retail Segment Performance Across Markets

Australia (including Bevilles)
Revenue for FY26H1 increased 2.1% to AUD 209.1m, while same store sales rose 4.8% compared to FY25H1. Gross margin improved by 20 basis points to 60.7% in FY26H1. The store network remained stable at 160 stores, including 37 Bevilles locations.

Canada
Revenue for FY26H1 grew 6.2% to CAD 96.3m, with same store sales increasing 6.1% year-on-year. Gross margin expanded by 70 basis points to 61.5%. The Canadian network remained at 82 stores.

New Zealand
Revenue for FY26H1 rose 2.4% to NZD 62.0m, while same store sales increased 1.8%, reversing prior declines. Gross margin declined by 60 basis points to 58.3%. The network closed two stores during the half, ending with 43 stores.

Across the Group, the total store network stood at 285 stores at the end of FY26H1, compared to 294 stores in FY25H1, a net reduction of nine stores year-on-year.

Early Second-Half Trading Update

For the first eight weeks of FY26H2, Group sales increased 4.5% compared to the prior year, while same store sales were up 6.0%. In local currency terms, same store sales grew 6.5% in Australia, 13.0% in Canada and 7.1% in New Zealand.

Management noted that consistent execution of retail fundamentals contributed to improved trading momentum, with growth across all markets continuing into the second half.

Investor Takeaway

Michael Hill’s FY26H1 results reflect revenue growth of 3.0%, comparable EBIT expansion of 28.6%, improved profitability and a strengthened net cash position. The combination of sales growth across all markets, inventory reduction, operating discipline and continued positive same store sales in early FY26H2 appears to be underpinning today’s share price advance.

Frequently Asked Questions (FAQs)

  1. Why did Michael Hill shares rise on 2 March 2026?

Michael Hill (NZX:MHJ) shares gained 2.86% to NZD 0.54 after the company reported FY26H1 results showing revenue growth of 3.0%, comparable EBIT growth of 28.6% and a strengthened net cash position.

  1. How did Michael Hill perform in FY26H1 compared to FY25H1?

For the half year ended 28 December 2025 (FY26H1), revenue increased 3.0% to AUD 371.0m, comparable EBIT rose 28.6% to AUD 31.0m and NPAT grew 32.0% to AUD 22.3m compared to FY25H1.

  1. Did Michael Hill declare an interim dividend for FY26H1?

No interim dividend was declared for FY26H1. The Board intends to return to dividends at the full-year results, subject to trading conditions.