Michael Hill Reports Flat FY25 Revenue; Australia and Canada Show Growth

FY25 Financial Performance in a Tough Retail Climate

Michael Hill International Limited’s FY25 results reveal a company navigating a complex retail environment marked by global economic uncertainty and shifting consumer preferences. The group’s overall revenue of $644 million and comparable EBIT of $15.3 million were largely unchanged from the previous year, reflecting resilience amid persistent headwinds.

Despite gold prices hitting record highs, the company maintained tight inventory control, closing the year with $199 million in stock, slightly above FY24 levels. Net debt remained stable at $42 million, underscoring disciplined financial management. However, the board elected not to declare a final dividend, signaling a cautious stance on capital returns.

Segment Performance, Growth and Challenges

The Australian and Canadian segments were bright spots, each delivering revenue growth despite a reduced store footprint in Australia. Australia’s revenue rose to $364 million even with 11 fewer stores, while Canada achieved a record performance with $162 million in revenue. Both markets benefited from strong digital engagement and omni-channel sales strategies.

Conversely, New Zealand continued to face challenging retail conditions and economic uncertainty, with revenue declining 5% to $109 million. The company has initiated an internal strategic review aimed at reversing this trend, reflecting the importance of the New Zealand market to the group’s overall health.

Strategic Initiatives and Brand Repositioning

Michael Hill made significant strides in FY25 to reposition its brand and enhance customer experience. Notably, the opening of a second global flagship store on Bourke Street in Australia and the refurbishment of the Queenstown store in New Zealand introduced a refreshed brand identity. The launch of the Pendant Bar concept, focusing on customizable and ready-to-wear gifting, represents an innovative approach to product offerings.

The company also elevated its sustainable “LAB.” diamond range, aligning with growing consumer demand for ethical products. The establishment of a New Zealand Distribution Centre is expected to improve supply chain efficiency and support future growth initiatives.

Early FY26 Trading and Outlook

Initial trading in FY26 shows a modest 3.2% increase in same-store sales across the group, driven by gains in Australia (+3.4%) and Canada (+6.8%), while New Zealand sales declined by 3.2%. Total sales for the first seven weeks rose 3.0%, suggesting some momentum heading into the new fiscal year.

Core priorities remain focused on embedding the Michael Hill brand repositioning, improving New Zealand’s performance through strategic review, and reinforcing the fundamentals of the Bevilles brand. The company’s ability to execute on these priorities will be critical to sustaining growth and navigating ongoing market challenges.