Michael Hill finds momentum across all three markets before Christmas

Canada leads Michael Hill’s first 16 weeks

Michael Hill International Limited (ASX/NZX:MHJ) has opened FY27 with a broad-based sales lift, reporting group same-store sales growth of 6.6% on a constant-currency basis for the first 16 weeks. On an Australian-dollar basis, growth was 2.3%, highlighting the effect of currency movements on the reported result.

Canada was the clear standout, with same-store sales up 11.3% in local currency. New Zealand followed with growth of 7.1%, while Australia delivered a 4.0% increase. The figures include store and online sales and are measured against comparable trading days, but remain unaudited.

Product launches support a stable gross margin

The sales update comes after Michael Hill reported a stronger FY26, including record revenue and a sharp rise in comparable EBIT, as outlined in the record FY26 financial results. The early FY27 figures suggest the retailer has carried that momentum into the new financial year, although the announcement does not provide earnings, cash flow or balance-sheet data.

Gross margin is holding in line with the prior year, which the company attributed to disciplined pricing, retail execution and refreshed go-to-market campaigns. New colour, bridal and tennis bracelet ranges, supported by in-store events, are being used to attract new customers and encourage existing customers to return.

Christmas trading is the next earnings test

Chief executive Jonathan Waecker said the group was “encouraged by the momentum building across the Group” and described Christmas as its most important trading period. He said Michael Hill remained optimistic about the opportunity despite an uncertain economic environment, while management expects continued profitable growth through the year.

That outlook is positive but still forward-looking. The key question is whether the sales gains can be maintained through the seasonal peak without putting pressure on margin. The next financial results will need to show how this early revenue momentum translated into profit and cash generation.