Michael Hill International (MHJ) H2 2026 earnings summary

Executive summary

• Record group revenue of AUD 655.7 million, up 1.9% year-over-year and 4.1% in constant currency, driven by a successful turnaround strategy, leadership reset, and strong execution across all markets.

• Comparable EBIT rose 57% to AUD 24 million, with statutory NPAT up 376% to AUD 10 million, reflecting improved profitability and operational turnaround.

• Dividend restored with a final payout of AUD 0.02 per share, reflecting confidence in the turnaround and balance sheet strength.

• Strategic simplification focused on core brands, reducing the portfolio from five to two, and included non-cash write-offs from closure of Medley and TenSevenSeven.

• Bevilles returned to growth in the second half, with digital sales and loyalty engagement increasing.

Financial highlights

• Group revenue reached AUD 655.7 million, up 4.1% in constant currency and 1.9% in AUD; same-store sales up 5.2% in constant currency.

• Gross margin held steady at 60.5%; gross profit increased 1.9% to AUD 397 million.

• Comparable EBIT rose 57% to AUD 24 million; statutory net profit after tax was AUD 10 million, up 376% year-over-year.

• Net debt reduced to AUD 5.5 million, down AUD 36.3 million from prior year.

• Final dividend of AUD 0.02 per share declared, compared to nil in prior year.

Outlook and guidance

• Management expects continued profitable growth in FY27, with early trading showing group same-store sales up 4.4% in constant currency and strengthening gross margins.

• Targeting EBIT margin of at least 10% in the medium term (3–5 years).

• FY27 capital expenditure and SaaS costs projected to rise to approximately AUD 25 million, focused on store refreshes and AI-enabled inventory planning.

• Management expects gross margin to remain flat or slightly up, with cost of doing business flat or nominally lower.