• Group revenue down 0.7% to $360.2m, flat on constant currency basis
• Comparable EBIT of $24.1m at upper end of guidance
• Gross margin improved to 61.3%, up from 60.6% in FY24

Michael Hill International Ltd reported its H1 FY25 results, with group revenue down 0.7% to $360.2m but flat on a constant currency basis. Comparable earnings before interest and tax (EBIT) was $24.1m, at the upper end of previous guidance. Gross margin improved to 61.3% for the half, up from 60.6% in FY24, underpinned by product and brand initiatives which offset higher input costs and aggressive retail trading conditions. The group's active inventory management delivered a $6.6m reduction to $213.2m. The closing net debt position was $9.8m, with the business remaining committed to a reduced capital expenditure profile across both technology and stores. Management has deployed targeted initiatives to deliver around $5m of cost reductions in the second half. No interim dividend was declared. Statutory net profit after tax increased to $16.9m from $15.4m in the prior corresponding period.

The group reported comparable EBIT of $24.1m for the half year ended 29 December 2024.

Given challenging broader economic conditions across all markets, the group reported a decline in performance, with comparable EBIT of $24.1m for the half year ended 29 December 2024. Management has deployed targeted initiatives to deliver around $5m of cost reductions in the second half as the group aligns resources to its strategic priorities and trading performance.