FY24H1 Trading Update

This announceme nt is aut horised for release by t he Board.
ENDS
ASX AND NZX ANNOUNCEMENT

FY24 H1 Trading Update
19 January 2024
Michael Hill International Limited (ASX/NZX: MHJ) provides a trading update fo r th e 26-week period ended 31 December
2023.
Following three years of record results at Michael Hill, retail conditions fo r th e fine jewellery sector h a ve b een challenging
throughout 2023. Th e macroeconomic environment impacting consumer sentiment resul ted in difficult trading conditions,
while both inflated input costs and aggressive competitor behaviour also placed margin under significant pressure.
• Comparable EBIT – FY24H1 G ro up comparable EBIT is anticipated to be in the range of between $30m to $33m.
• Group sales – For the half, Group sales (including Bevilles) were up 4.1% on LY, and while the sales trend fo r th e co re
Michael Hill brand improved through the half, sales were still negative to the record first half of FY 23.
• Margin under pressure – Du e to higher input costs fo r gol d and diamonds, and more aggressive retail trading conditions,
margins were down and are exp ected to be in the range of 61% to 62% for the half.
• Digital g rowth – Digital sales have continued to return to growth and represented 8% of total Group sales for the half.
• Inventory levels – Group inventory levels remain well-managed and are in line with management’s expectations.
• Store portfolio management – For Bevilles, four new AU stores opened taking the network to 30. For Michael Hill, six
under-performing stores were permanently closed (AU: 5, CA:1) taking the network to 272 (AU: 141, NZ: 46, CA:85). Th e
total Group n etwo rk was 302 stores at the end of the half across all markets (FY23: 304).

Commenting on the result, Managing Director and CEO of Michael Hill International Limited, Daniel Bracken said:
“Whilst the first half was definitely a challenging period for our business with sales for the core Michael Hill brand down, we
are encouraged by our performance against the broader jewellery sector.
"Clearly margin was under pressure from both input costs and promotional activity, and inflationary forces saw elevated costs
across many aspects of the business, which together impacted EBIT for the half. As a result, the company has taken direct
actions to reduce operating costs, including the exit of a number of senior management roles.
“Even though consumers continue to monitor their discretionary spend, our multi-brand strategy puts us in a strong position
to continue taking market share from our competitors as we expand the Bevilles network and elevate the Michael Hill brand.”


$m $m
Revenue for retail operations for FY24H1:

Last Year This Year % Var to


(26 wks) (26 wks)
Last Year
Segment figures in local currency



Australia segment AUD
183.6 202.4 10.2%
New Zealand segment NZD
72.9 65.4 (10.3%)
Canada segment CAD
87.8 88.3 0.6%


Total sales AUD
348.5 362.8 4.1%




Exchange rates used for FY24H1:

New Zealand 1.09 1.08

Canada 0.89 0.88



The above figures are prior to final accounting adjustment s and are unaudite d. Revenue/Sales figures state d above include t he PCP re venue
recognised duri ng the period and sales through our store and online channels. The PCP i ncome recognition pattern is based on existi ng
estimates and is s ubject to ongoing management review and adjusted at half-year/year-end as required.

All last year sales/revenue numbe rs are on a comparable 26-week basis. Group and Australian segment sales include Bevilles sales in FY24.
Comparable EBIT is unaudited, pre-AASB16, pre-IFRIC SaaS-related adjustments, and wit h normalisations.

Michael Hill International Limited ABN 25 610 937 598
34 Southgate Avenue, Cannon Hill, QLD 4170
For more information, please contact:


Investors:
Andrew Lowe
C FO & C o mp a n y Secret a ry
+61 7 3114 3500
andrew.lowe@michaelhill.com.au


Investors:
Anthea Noble
H ea d o f Investor Relations
+61 438 770 704
anthea.noble@michaelhill.com.au


ABOUT MICHAEL HILL INTERNATIONAL LIMITED

Michael Hill International was founded by Sir Michael Hill in 1979 when he opened his first jewellery store in Whangarei, New
Zealand. The Group currently has 302 stores globally across Australia, New Zealand and Canada. The Group’s global
headquarters, including its wholesale and manufacturing divisions, are located in Brisbane, Australia. The Company is listed
on the ASX (ASX:MHJ) and the NZX (NZX:MHJ).

www.investor.michaelhill.com


Disclaimer

Certain statements in this announcement constitute forward-looking statements. Forward-looking statements are statements (other than
statements of historical fact) relating to future events and the anticipate d or planned financial and operational pe rformance of Michael
Hill International Limited a nd its related bodies corporate (the Company). The words “targets,” “believes,” “expects,” “aims,” “intends,”
“plans,” “seeks,” “will,” “may,” “might,” “anticipates,” “would,” “could,” “should,” “continues,” “estimates” or similar expressions or the
negatives thereof, identify certain of these forward-looking statements. Other forward-looking statements can be identified in the context
in which the statements are made. Forward-looking statements include, among other things, statements addressing matters such as the
Company’s future result s of operations; financial condition; working capital, cash flows and capital expendit ures; and business strategy,
plans and objectives for future operations and events, including t hose relating to ongoing operational and strategic reviews, expansion i nto
new markets, future product launches, points of sale and production facilities.

Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, such forward-looking
statements involve k nown and unk nown risks, uncertainties and othe r important factors that could cause the Company’s actual results,
performance, operations or achievements or industry results, to differ materially from any future results, performance, operations or
achievements expresse d or implied by s uch forward-looking statements.

Such risks, uncertainties and other important factors include, among others: global and local economic conditions; changes in market
trends and e nd-consumer prefere nces; fluctuations in the prices of raw materials, currency exchange rates, and inte rest rates; the
Company’s plans or objectives for future operations or products, includi ng the ability to introduce new jewellery and non-jewellery
products; the ability to expand in existing and new markets and ris ks associated with doing business globally and, in particular, in emerging
markets; competition from local, national and international companies in the markets in w hich the Company operates; the protection and
strengtheni ng of the Company’s intellectual property rights, includi ng patents and trade marks; the future adequacy of the Company’s
current ware housing, logistics and i nformation technology operations; changes in laws and regulations or any interpretation thereof,
applicable to t he Company’s busi ness; i ncreases to the Company’s effective tax rate or other harm to the Company’s busi ness as a result
of governmental review of the Company’s transfer pricing policies, conflicting taxation claims or changes in tax laws; and other factors
referenced to in this prese ntation.

Should one or more of these risks or uncertainties materialise, or should any underlyi ng assumptions prove to be incorrect, the Company’s
actual financial condition, cash flows or results of operations could differ materially from that described he rein as anticipated, believe d,
estimated or expected. Accordingly, you are cautioned not to place undue reliance on any forward-looking statements, particularly in light
of the current economic climate and the significant volatility, uncertainty and disruption caused by the COVID-19 pandemic.

The Company does not i ntend, and do not assume any obligation, to update any forward-looking statements contained herei n, except as
may be requi red by law. All subsequent writte n and oral forward-looking statements attributable to us or to persons acting on the
Company’s behalf are expressly qualified in t heir e ntirety by t he cautionary statements referred to above and contained elsew here i n this
announcement.