• Comparable EBIT1 of $31.0m, up +28.6% on prior year
• Group sales of $371.0m, up +3.0% on prior year
• Same store sales2 growth of +3.8% on prior year

Michael Hill International Limited (ASX/NZX: MHJ) today announced its financial results for the half year ended 28 December 2025. The Group delivered a materially stronger operating performance in FY26H1, with comparable earnings before interest and tax increasing 28.6% to $31.0m. 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. 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. The business advanced its customer experience agenda through the establishment of a new Auckland Distribution Centre, and successfully opened three MH flagship stores. 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 same store sales were up 6.0% on prior year, with growth across all markets.

The CEO stated that while the company remains mindful of current economic conditions, the first half demonstrates that consistent execution of retail fundamentals is translating into improved performance for the Group. At the upcoming Investor Day, the company will provide clarity on how it will build on its current trading momentum and deliver sustainable, profitable growth over time.