FY25 Full Year Financial Results
| Stock | Michael Hill International Ltd (MHJ.ASX) |
|---|---|
| Release Time | 25 Aug 2025, 9:08 a.m. |
| Price Sensitive | Yes |
Michael Hill Reports FY25 Financial Results
- Group revenue flat at $643.7m, gross margin at 60.5%
- Comparable EBIT of $15.3m, statutory net profit of $2.1m
- Digital sales grew 6% to over $50m
Michael Hill International Limited announced its full year financial results for the 52-week year ended 29 June 2025. Group revenue was $643.7m, broadly flat against the prior year, with group gross margin settling at 60.5%. Comparable earnings before interest and tax (EBIT) were $15.3m, down from $15.9m in the prior year. Statutory net profit after tax improved to $2.1m, up from a $0.5m loss in FY24. This result includes a $7.4m impairment expense of the Bevilles Brand intangible asset, partially offset by a $3.0m favourable litigation outcome. Inventory levels were managed to absorb record gold prices, closing at $199.1m. The group's closing net debt position was $41.9m. No final dividend was declared for FY25. On a same-store sales basis, Canada delivered another record year with +4.4% growth, Australia was up +1.2%, while New Zealand was down -5.5%. In the second half, the group saw an improving same-store sales trend across all segments. Digital sales grew 6% to deliver over $50m for the first time. The group established a new distribution centre in Auckland, New Zealand, and opened two new Michael Hill stores (one each in Canada and New Zealand), while closing 14 stores and converting two Australian stores to Bevilles. The Bevilles brand saw challenging trading conditions, leading to a $7.4m non-cash impairment of the brand's intangible asset. For the first seven weeks of FY26, group sales were up 3.0% and group same-store sales were up 3.2% on the prior year.
The group's primary focus has been on building strong foundations for margin recovery to drive sustainable growth, including initiatives to support improved intake margin, deliver 'uniquely Michael Hill' product newness and mix at higher margins, and disciplined retail execution. The group has also established an AI Centre of Excellence and is trialling a new consignment stock model to provide working capital benefits.