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Highlights

  • MHJ’s gross margin rose to 61.3% in H1 FY25, supported by product and brand initiatives.
  • In the first seven weeks of H2FY25, group sales jumped 1.7% YoY.
  • Michael Hill is progressing with the third phase of its multi-brand strategy.

Michael Hill International Limited (NZX:MHJ) is a retail jeweller headquartered in Brisbane, Australia. The company operates a network of stores across Australia, New Zealand, and Canada and focuses on both in-store and online retail. It is dual listed on the ASX and NZX.

Financial Performance

In the first half of financial year 2025 (H1FY25), the group revenue dropped by 0.7% YoY from AUD 362.7 million to AUD 360.2 million. The gross margin increased to 61.3% compared to 60.6% in H1FY24 which was supported by product and brand initiatives. This includes a shift towards higher margin gifting products during the Christmas period.

During the reported period, EBIT decreased to AUD 24.1 million (FY24H1: AUD 31.3 million). Meanwhile, statutory net profit after tax increased to AUD 16.9 million from AUD 15.4 million, while no interim dividend was declared.

In the first seven weeks of H2FY25, group sales jumped 1.7% YoY and same store sales increased by 3.2% YoY.

Company Outlook

Michael Hill has entered the third phase of its multi-brand strategy, focusing on clearly positioning each brand to target distinct customer segments and price points, with tailored strategic priorities.

Over the next 12 months, the group aims to prioritise margin recovery and lay the groundwork for long-term growth. The key initiatives include fully embedding the repositioned Michael Hill brand across all markets, conducting an internal strategic review of the New Zealand business to enhance performance, and strengthening the retail execution, brand identity, and awareness of the Bevilles brand in preparation for its planned expansion.

Stock Information

The stock of MHJ has witnessed a fall of ~30.15% in the last six months and declined by around 20% in the past year. The stock has a 52-week low and 52-week high of NZD 0.4200 and NZD 0.6900, respectively and is currently trading above the average of the 52-week high-low. As of 20 May 2025, the stock’s closing price is NZD 0.4500.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 20 May 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.