FY26H1 Results

A SX AND NZX ANNOUNCEMENT

FY2 6 H1 RESULTS

SALES AND PROFIT GROWTH ACROSS ALL SEGMENTS



27 February 2026

Michael Hill International Limited (ASX/NZX: MHJ) today announced its financial results for the half year ended 28
December 2025.

Release Highlights:
• Comparable EBIT
1
of $31.0m, up +28.6% on prior year.
• Group sales of $371.0m, up +3.0% on prior year.
• Same store sales
2
(SSS) growth of +3.8% on prior year.
- Canada achieved another record sales performance with SSS growth of +6.1% on prior year.
- Australia delivered a strong sales performance with SSS growth of +4.8% on prior year.
- New Zealand reversed previous SSS declines, growing by +1.8% on prior year.
• Gross margin broadly flat at 61.2%, as increases in gold, silver, and other metal input costs were offset by
enhanced overall product mix and focused promotional activity.
• Group inventory levels reduced by $11.3m to $201.9m, a reduction of -5.3% on prior year.
• Group net cash position of $20.7m at the half, a $30.5m improvement on the ($9.8m) net debt position at the
prior year.
• The Board has decided that no interim dividend will be declared for the half year, however the Board intends to
return to dividends at the full year results, subject to current trading conditions continuing and in line with the
Company’s dividend policy.
• For the first eight weeks of FY26H2, Group SSS were up 6.0% on prior year, with growth across all markets, in local
currency with:
- Australian segment +6.5%
- Canadian segment +13.0%, and
- New Zealand segment +7.1%.
• Investor Day to be held at Michael Hill’s Global Head Office in Cannon Hill, Qld on Tuesday 14 April 2026.













Commenting on the Company’s half year results, CEO Jonathan Waecker, said:
“Since joining the business in August, I have spent most of my time in stores and with our teams and customers. The
feedback was consistent, that when we simplify how we operate, stay close to the customer and focus on retail
fundamentals, performance improves.

“Over the half, we acted on that by tightening our product focus, improving our go-to-market, clarifying expectations in
stores, and improving how we communicate across our teams. Momentum built through the Christmas trading period,
and we saw that come through in stronger sales and improved comparable EBIT. This consistent customer-centric focus
has also delivered organic growth across the network, resulting in a broader customer base choosing Michael Hill.
Pleasingly, positive sales performance has continued into the first eight weeks of the second half, with group same store
sales up 6%.

$m unless stated FY26 H1 FY25 H1 Movement
Group revenue 371.0 360.2 ↑ 3.0%
Gross margin (%) 61.2% 61.3% ↓ 10 bps
Comparable EBIT 31.0 24.1 ↑ 28.6%
Statutory NPAT 22.3 16.9 ↑ 32.0%
Interim dividend Nil Nil —

Inventory 201.9 213.2 ↓ 11.3
Net cash / (debt) 20.7 (9.8) ↑ 30.5

Store network (no.) 285 294 ↓ 9

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“Most importantly, this result reflects the work of our teams. Their willingness to adapt, execute consistently and build
on what is working gives me the confidence that we are strengthening the business and creating a more sustainable
platform for growth.”

FY26H1 – Group Business Performance
The Group delivered a materially stronger operating performance in FY26H1, with comparable earnings before interest
and tax increasing 28.6% to $31.0m for the half year ended 28 December 2025. The uplift was primarily driven by higher
sales volumes, which generated an additional $6.3m in gross profit. This outcome reflects renewed go-to-market
initiatives with product and pricing playing a key role to partially offset continued pressure from elevated input costs -
particularly gold. Importantly, disciplined cost management ensured operating expenses were controlled in an
inflationary environment, enhancing operating leverage and contributing to the improvement in earnings.
For the half, the Group delivered revenue of $371.0m, up 3.0%, supported by solid performances in Australia and
Canada and a return to positive sales growth in New Zealand. Group same store sales increased by +3.8% in local
currency, reflecting excellence in execution of product, brand and promotional initiatives.
Gross margin remained broadly in line with the prior year at 61.2%, as record high gold and silver input costs were
effectively offset by enhanced product mix and disciplined pricing execution.
During FY26H1, our product initiatives played a meaningful role in supporting trading performance. The introduction of
new collections including Vermeil, Lume LAB and the Earring Bar - aimed to drive customer interest and maintain brand
freshness, while the continued broadening of our Pendant Bar range further enhanced the instore experience,
supporting customer engagement. At the same time, our focus on showcasing exceptional quality at attainable price
points strengthened our overall value proposition. Complementing these initiatives, the expansion of our curated
Christmas gift sets ensured we met diverse customer needs during peak gifting periods, supporting momentum across
our major markets throughout the half.
A number of working capital initiatives have been undertaken during the half including successful negotiation of new
supplier terms with a key partner and a focus on improving stock efficiency leading to a reduction in inventory holdings
by $11.3m to $201.9m.
During the half, the business advanced its customer experience agenda through the establishment of a new Auckland
Distribution Centre, which began operating in early FY26. This investment improves fulfilment speed and accuracy,
reduces time to customer, and strengthens service levels across channels.
The half saw the successful opening of three MH flagship stores, Rundle Mall, Adelaide (refurbishment), Bondi Junction,
Sydney (new store) and Yorkdale, Toronto (refurbishment), with all stores incorporating our new brand design and a
modernised in -store customer experience. During the half, the store network reduced by a net total of two stores, taking
the network to 285 across all markets (FY25H2: 287). During the calendar year 2025, the store network reduced by a
net total of nine stores (FY25H1: 294).

Retail Segment Performance

Australia (including Bevilles)
Retail segment revenue increased by 2.1% to AU$209.1m for the half, and increased by 4.8% on a same store basis,
underpinned by positive growth in the Michael Hill brand.
Gross margin for the half increased by 20 bps to 60.7%.
During the half, the Australian network opened one and closed one MH store, resulting in 160 stores, including 37
Bevilles stores.
Canada
Retail segment revenue increased by 6.2% to CA$96.3m for the half, and increased by 6.1% on a same store basis.
This strong outcome reflects the continued execution of the Canadian team, delivering another record
performance and demonstrating the business’s ability to consistently gain market share in a competitive
environment.
Gross margin for the half increased by 70 bps to 61.5%.
During the half, there was no change to the Canadian network, remaining at 82 stores.

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New Zealand
Retail segment revenue increased by 2.4% to NZ$62.0m for the half, and increased by 1.8% on a same store sales
basis. This result demonstrates improving momentum in New Zealand, driven by focused go-to-market initiatives
and disciplined retail execution, alongside a gradually strengthening economy.
Gross margin for the half decreased by 60 bps to 58.3%.
During the half, two stores were closed, resulting in 43 stores.
Capital Management
During the half, the business successfully refinanced its existing debt facility on improved margins for an additional two
years, with its long-term banking partner, ANZ and introduced a new lender, CBA. In addition, the business remained
committed to a reduced capital expenditure profile across both technology and stores, reducing the inventory profile
across the business and implementing working capital efficiencies, and finished the half with a positive net cash position
of $20.7m, an improvement of $30.5m on prior year (closing net debt FY25H1: $9.8m).
The Board has decided that no interim dividend will be declared for the half year.
Chair of Michael Hill International Limited, Rob Fyfe said:
“Restoring a consistent and sustainable dividend to shareholders remains a priority for the Board. Reflecting the
continued improvement in the Group’s balance sheet and trading performance, the Board intends to return to dividends
at the full year results, subject to current trading conditions continuing and in line with the Company’s dividend policy.”
Investor Day
With the commencement of our new CEO, Jonathan Waecker, the business is taking the opportunity to revisit and reset
the Group’s strategy, which will be introduced to the market during our Investor Day to be held at its Global Head Office
in Cannon Hill, Qld on Tuesday 14 April 2026.
FY26H2 Trading Update
For the first eight weeks of FY26H2, Group sales were up 4.5%, and Group same store sales were up 6.0% on prior year.
For same store sales (in local currency):
• Australian segment up 6.5%,
• Canadian segment up 13.0% and
• New Zealand segment up 7.1%.

CEO of Michael Hill International Limited, Jonathan Waecker said:
“While we remain mindful of current economic conditions, the first half demonstrates that consistent execution of retail
fundamentals is translating into improved performance for the Group.
“At our Investor Day in April we will provide clarity on how the business will build on its current trading momentum and
deliver sustainable, profitable growth over time.”

Analyst and investor call
An investor briefing on the results is scheduled for 7:30am (AEST) on Monday 2 March 2026.
Please note that the webcast page will not be available until 6:30am (AEST) and it is advised that you join at least 5
minutes before the meeting commences. Participants are encouraged to register online in advance. Once registered
you will be able to download a calendar invite link.

The webcast link for the briefing call on Monday 2 March 2026:
https://meetings.lumiconnect.com/300-712-451-544

If prompted, please enter the meeting ID: 300-712-451-544

The webcast link to the briefing will also be available on the ‘events’ section of the investor centre website at:
https://investor.michaelhill.com

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Important Notes

1
Comparable EBIT is unaudited, excludes the impact of AASB16 Leases and IFRIC SaaS guidance, and with
normalisations. Further information on the reconciliation of comparable to the statutory result is contained in the
Directors’ report and investor presentation.
2
Same store sales reflect sales through store and online channels on a
comparable trading day basis and are unaudited.

This announcement is authorised for release by the Board.
– ENDS –
For more information, please contact:
Investors:
Elodie Guill aumond
Chief Financial Officer
+61 7 3114 3500
elodie.guillaumond@michaelhill.com.au


Investors & Media:
Anthea Noble
General Manager - Investor Relations & Treasury
+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 285 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).

For more information:
investor.michaelhill.com

Disclaimer
Certain statements in this report constitute forward-looking statements. Forward-looking statements are statements (other than
statements of historical fact) relating to future events and the anticipated or planned financial and operational performance of
Michael Hill International Limited and its related bodies corporate (the Group). The words “targets”, “believes”, “expects”, “aims”,
“intends”, “plans”, “seeks”, “will”, “may”, “might”, “anticipates”, “projects”, “assumes”, “forecast”, “likely”, “outlook”, “would”,
“could”, “should”, “continues”, “estimates” or similar expressions or the negatives thereof, generally identify 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 Group’s future results of operations; financial
condition; working capital, cash flows and capital expenditures; and business strategy, plans and objectives for future operations and
events, including those relating to ongoing operational and strategic reviews, sustainability targets, expansion into new markets,
future product launches, points of sale and production facilities.
Although the Group believes that the expectations reflected in these forward-looking statements are reasonable at the time of
publishing, they are not guarantees or predictions of future performance or statements of fact. Such forward-looking statements
involve known and unknown risks, uncertainties and other important factors that could cause the Group’s actual results,
performance, operations or achievements or industry results, to differ materially from any future results, performance, operations
or achievements expressed or implied by such forward-looking statements.
Such risks, uncertainties and other important factors include, among others: global and local economic conditions; changes in market
trends and end-consumer preferences; fluctuations in the prices of raw materials, currency exchange rates, and interest rates; the
Group’s plans or objectives for future operations or products, including the ability to introduce new jewellery and non-jewellery
products; the ability to expand in existing and new markets and risks associated with doing business globally and, in particular, in
emerging markets; competition from local, national and international companies in the markets in which the Group operates; the
protection and strengthening of the Group’s intellectual property rights, including patents and trademarks; the future adequacy of
the Group’s current warehousing, logistics and information technology operations; changes in laws and regulations or any
interpretation thereof, applicable to the Group’s business; increases to the Group’s effective tax rate or other harm to the Group’s
business as a result of governmental review of the Group’s transfer pricing policies, conflicting taxation claims or changes in tax laws;
and other factors referenced to in this report.
Should one or more of these risks or uncertainties materialise, or should any underlying assumptions prove to be incorrect, the
Company’s actual financial condition, cash flows or results of operations could differ materially from that described herein as
anticipated, believed, estimated or expected. Accordingly, you are cautioned not to place undue reliance on any forward-looking
statements, as there can be no assurance the actual outcomes will not differ materially from the forward-looking statements in this
report.

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Except as required by applicable laws or regulations (including the ASX Listing Rules), the Group does not intend, and does not assume
any obligation, to update any forward-looking statements contained herein. All subsequent written and oral forward-looking
statements attributable to us or to persons acting on the Group’s behalf are expressly qualified in their entirety by the cautionary
statements referred to above and contained elsewhere in this report.
Michael Hill International Limited ABN 25 610 937 598
34 Southgate Avenue, Cannon Hill, QLD 4170