MHJ FY26 Half-Year Results Investor Webcast
Michael Hill International, the ASX-listed jewellery retailer, is set to release its FY26 half-year results amid signs of operational turnaround after a period of stagnation.
Key takeaways
- •Following a January trading update showing 3.1% sales growth to A$370.3 million and expected EBIT up 12-24% to A$27-30 million, the March 2 investor webcast will provide detailed confirmation and forward guidance on whether the Christmas trading rebound can sustain momentum.
- •The company has swung to a A$20 million net cash position from A$10 million net debt a year earlier, driven by inventory cuts and refinancing, reducing financial pressure in a high-interest environment.
- •Under new leadership, performance improved markedly in the final 10 weeks of the half across Australia, Canada, and New Zealand, reversing prior declines but leaving questions on long-term consumer spending resilience amid economic headwinds.
Jeweller's Recovery Test
Michael Hill International Limited (ASX: MHJ) operates around 285 stores selling premium jewellery in Australia, New Zealand, and Canada. The business has faced challenges in recent years from subdued consumer demand, particularly in discretionary categories like jewellery, compounded by rising input costs from record-high gold and silver prices.
A preliminary trading update released in late January 2026 revealed early signs of stabilisation. Group sales rose 3.1% to A$370.3 million for the 26 weeks to December 28, 2025, with same-store sales up 3.8%. Comparable EBIT is guided in the range of A$27 million to A$30 million, a 12-24% increase from A$24.1 million in the prior corresponding period. Canada led with 6.1% same-store growth, Australia posted 4.8%, and New Zealand returned to 1.8% growth after previous contractions.
The results reflect actions under new CEO Jonathan Waecker, including tighter execution, disciplined promotions, and inventory reduction to around A$203 million from A$214 million a year earlier. Debt refinancing with ANZ and CBA supported a shift to a positive net cash position of approximately A$20 million, a A$30 million swing that eases balance-sheet strain.
The formal half-year results, due February 27, 2026, followed by the March 2 webcast, arrive at a pivotal moment. Jewellery retail remains sensitive to economic conditions: high metal costs squeezed margins (though held broadly flat through mix improvements), while consumer caution in non-essential spending persists. The strong Christmas finish suggests marketing and operational tweaks gained traction, but sustaining this across a full year will test whether cost-of-living pressures or any slowdown in key markets erode gains.
Non-obvious tensions include the trade-off between promotional activity to drive volume and preserving brand premium positioning, alongside the risk that inventory discipline curbs flexibility if demand accelerates unexpectedly. Gold price volatility adds another layer, as hedging or passthrough decisions directly affect profitability.
Sources
- https://investor.michaelhill.com/static-files/dfbee865-7a98-473e-9f0b-8e0dfb811d67
- https://kalkine.com.au/news/general-news/michael-hill-asxmhj-shares-leap-as-fy26-h1-results-signal-rebound-across-key-markets
- https://www.fool.com.au/2026/01/27/jewellers-shares-shine-on-strong-first-half-sales
- https://en.wikipedia.org/wiki/Michael_Hill_Jeweller
- https://investor.michaelhill.com/