• Group revenue down 0.7%, but flat on constant currency basis
• Gross margin improved to 61.3%, underpinned by product and brand initiatives
• Comparable EBIT of $24.1m at upper end of guidance
• Statutory net profit after tax increased to $16.9m
• Inventory reduced by $6.6m, net debt position of $9.8m

Michael Hill International Ltd announced its financial results for the half year ended 29 December 2024. Group revenue was $360.2m, a decrease of 0.7% in the half, but flat on a constant currency basis. Group gross margin improved to 61.3%, underpinned by product and brand initiatives which offset higher input costs and aggressive retail trading conditions. Comparable earnings before interest and tax (EBIT) were $24.1m, at the upper end of previous guidance, while statutory net profit after tax increased to $16.9m. Active inventory management delivered a $6.6m reduction to $213.2m, and the business maintained a closing net debt position of $9.8m. Operationally, Canada delivered another record sales performance with +2.7% growth on a same store sales basis, while Australia was up +0.6%. New Zealand continued to be adversely impacted by challenging economic conditions, with same store sales down -7.8%. Digital sales grew to $30.3m, supported by strong traffic and deployment of Bevilles' omni-initiatives.The company focused on strategic initiatives during the half, including the successful launch of the MH Pendant Bar concept, elevating its sustainable 'LAB.' diamonds, and opening new flagship stores in Australia. The Bevilles brand also expanded its store network to 38 stores.Looking ahead, the company is focused on margin recovery and building a strong foundation for sustainable growth, with priorities including embedding the Michael Hill brand repositioning, improving the New Zealand performance, and reinforcing the Bevilles brand identity and awareness.

For the first seven weeks of FY25H2, Group sales were up 1.7%, and Group same store sales were up 3.2% on prior year. For same store sales (in local currency): Australian segment up 3.8%, Canadian segment up 6.7%, and New Zealand segment down 1.9%.

The company remains committed to its multi-brand Group strategy and the four phases of the Group strategy, the path to 2030, as articulated in February 2024. Over the next 12 months, the Group's primary focus is on margin recovery and building a strong foundation for sustainable growth, underpinned by three key strategic priorities: embedding the repositioning of the Michael Hill brand, improving the performance of the New Zealand segment, and reinforcing the retail fundamentals, brand identity and awareness of the Bevilles brand.