Half Year 2026 Michael Hill International Ltd Earnings Call Transcript
Key Points
- Michael Hill International Ltd (ASX:MHJ) reported a 28.6% increase in comparable EBIT to $31 million, driven by revenue growth and improved operating leverage.
- Canada delivered a record performance with same-store sales growth of 6.1%, showcasing strong market execution.
- The company successfully opened three flagship stores in key locations, enhancing brand presence and customer experience.
- The new New Zealand distribution center improved operational efficiency, with 70% of customer orders now shipping on the same day.
- The company ended the half with a positive net cash position of $20.7 million, an improvement of $30.5 million from the previous year.
- The Board decided not to declare an interim dividend for the half year, although it aims to restore dividends at the full year results.
- Gross margin remained flat at 61.2%, with higher input costs, particularly gold and silver, posing challenges.
- The New Zealand market experienced a gross margin decline of 60 basis points due to the introduction of lower-priced products.
- The company faced a net reduction of two stores in the half and nine for the full calendar year.
- Bevilles store rollout was paused, reflecting softer trading and raising questions about future growth targets.
Thank you for joining us today for Michael Hill International Limited's FY26 half year results webcast. My name is Jonathan Waecker, and it's a pleasure to be speaking with you today as Chief Executive Officer. Today's webcast marks my first half year results presentation since joining the business six months ago in August of 2025. Joining me today is our Chief Financial Officer, Elodie Guillaumond, who commenced with the group in February.
While Elodie is early in her time with the business, she has already spent a significant amount of time with our teams, our operations and our financials, and we're very pleased to have her with us today. I'll begin with a review of the group's performance for the first half. I'll then hand over to Elodie, who will take you through the financial and segment results in more detail. I'll return after that to provide a current trading update, outline our upcoming Investor Day, and then we'll open the line for Q&A.
The first half of FY26 was a strong half for the group with
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