Full Year 2025 Michael Hill International Ltd Earnings Call Transcript
Key Points
- Canada delivered another record sales performance, showcasing resilience and strong market presence.
- Group same store sales increased by 2.4% for FY25, indicating positive sales momentum.
- Digital sales grew by 6% to over $50 million, highlighting the success of the omni-channel strategy.
- The opening of a second global flagship store in Melbourne and refurbishment of the Queenstown store reflect a strong focus on brand elevation.
- Introduction of certified sustainable lab diamonds and the Pendant Bar concept targets high-growth categories and customer engagement.
- Global economic uncertainty and challenging retail conditions persisted, particularly impacting New Zealand.
- Inflationary cost pressures affected operating expenses, especially store labor and occupancy costs.
- No final dividend declared for FY25 due to compressed earnings and a focus on prudent investment.
- The Bevel's brand faced challenging retail conditions, leading to a non-cash impairment of $7.4 million.
- High number of store closures, including 14 loss-making stores, reflects ongoing challenges in optimizing the store network.
Good morning and thank you for joining Michael Hill International's FY25 full year results update.
I'm Andrew Lo, interim CEO and Chief Financial and supply chain officer. Rob Fyfe, our chair, is here with me today and will be available to answer questions at the end of the presentation.
Today I'll be taking you through a review of our FY25 results, a current trading update, and providing you with further insights on our current core priorities before ending with a Q&A session.
FY25 saw global economic uncertainty and challenging retail trading conditions persist across all markets, with conditions in New Zealand remaining particularly challenging.
However, pleasingly, our two larger segments still delivered growth, with Canada delivering another record sales performance.
The second half saw an improvement in same store sales across all segments, with FY 25, 2, group same store sales up 2.4%. In addition, the business saw productivity
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