• Comparable EBIT expected to be up 12% to 24% on prior year
• Group sales grew 3.1% with strong same-store sales performance across all markets
• Gross margin broadly flat as higher input costs offset by improved product mix

Michael Hill International Limited (ASX/NZX: MHJ) has provided a trading update for the 26-week period ended 28 December 2025, based on preliminary and unaudited numbers. The company anticipates its FY26H1 Group comparable EBIT to be in the range of $27m to $30m, up 12% to 24% on the prior year (FY25H1: $24.1m). Group sales for the half were $370.3m, delivering growth of 3.1% on the prior year (FY25H1: $359.1m) and 3.8% on a same-store sales basis. The company's Canadian segment achieved another record sales performance with 6.1% same-store sales growth, while Australia delivered a strong 4.8% increase and New Zealand reversed previous declines with 1.8% growth. For the half, the Group's gross margin is expected to be broadly flat to the prior year (FY25H1 61.3%), as record-high gold, silver, and other metal input costs were offset by an enhanced overall product mix and focused promotional activity. Group inventory levels are expected to be around $11m lower than the prior year at approximately $203m (FY25H1: $214m), as part of a deliberate plan to improve working capital efficiency. The company has also successfully refinanced its existing debt facility on improved margins for an additional two years, with its long-term banking partner ANZ and a new lender, CBA. The half finished with a positive net cash position of around $20m, an improvement of $30m on the prior year (closing net debt FY25H1: $10m).