Michael Hill International has reported full-year sales in line with the prior year for the 52 weeks to 29 June 2025, with improved second-half trading helping offset a weaker first half. The update follows the passing of company founder Sir Michael Hill on 29 July, aged 86.
Sales Performance Across Markets
Group sales for the year totalled AUD 641.6 million, with comparable sales increasing 0.3% year on year. Same-store sales rose 2.4% in the second half, supported by growth in all regions during that period.
For the full year, Canada was the best-performing market, achieving record sales of CAD 160.3 million, up 4.4% on a same-store basis. Australia saw a 1.2% lift to AUD 344.1 million, while New Zealand sales fell 6% to NZD 106.5 million. The company linked part of the second-half improvement to the introduction of new product lines, including additions to its LAB. lab-grown diamond range and the Pendant Bar collection.
Earnings and Margins
Preliminary, unaudited figures indicate group comparable EBIT will be between AUD 14 million and AUD 16 million, compared with AUD 15.9 million in FY24. Gross margin is expected to be approximately 60.5%, in line with last year’s 60.6%, despite competitive promotional activity and high gold prices. The company said margin stability was supported by a greater proportion of sales from higher-margin product categories.
Inventory closed the year at around AUD 199 million, compared with AUD 196 million in FY24. Net debt rose to approximately AUD 42 million, from AUD 39 million the previous year.
Store Network Changes
During the year, Michael Hill closed 14 underperforming stores, 10 in Australia and four in Canada, and converted two Australian locations to its Bevilles brand. Two new Michael Hill stores were opened, one in Canada and one in New Zealand. At year-end, the company operated 250 Michael Hill stores across Australia (123), Canada (82) and New Zealand (45). The Bevilles network stood at 37 stores following the conversions and one closure, bringing the group total to 287 stores, down from 300 the previous year.
Leadership Comment
Interim CEO Andrew Lowe said: “Despite retail trading conditions remaining challenging in all markets, the business has delivered full year earnings and gross margin broadly in line with prior year. A relentless focus on store productivity saw a second-half lift in Group same store sales of 2.4 percent. Our Canadian segment yet again delivered record sales, which is a credit to the resilience of the business and our team.”
“A relentless focus on store productivity saw a second-half lift in group same-store sales…. Our Canadian segment yet again delivered record sales,” he said. “Looking forward, the business is committed to taking the positive momentum demonstrated in the second half into the all-important Christmas trading period.”
“While delivery of flat year-on-year earnings is disappointing, I am very proud of our retail and support centre teams for their unwavering commitment, agility and perseverance, in circumstances where, together, we navigated significant and unexpected disruptions,” he added.
“New product initiatives, including our Pendant Bar range and expanded LAB collections are resonating with both existing and new customers.”
Industry Context
Michael Hill’s flat annual sales and steady margins, despite pressure from gold prices and promotional discounting, reflect the operational stability achievable for jewellery retailers operating across multiple markets. Its focus on lab-grown diamonds and other higher-margin lines aligns with a broader industry trend toward category diversification as consumer preferences evolve. The adjustment of its store network is consistent with a wider sector approach of prioritising profitability over store count.
