Michael Hill International reported record group revenue of A$655.7 million for FY26, up 4.1% in constant currency terms and 1.9% in Australian dollars, as its turnaround strategy delivered improved profitability and a stronger balance sheet.
Comparable earnings before interest and tax (EBIT) rose 57% to A$24 million, while same-store sales increased 5.2% in constant currency terms. Gross margin remained steady at 60.5% despite higher precious metal costs and pressure on consumer spending. The company’s cost of doing business declined 70 basis points to 57.1% of revenue.
Statutory net profit after tax stood at A$10 million. The company attributed the difference between statutory profit and comparable EBIT partly to A$6.1 million in non-cash write-offs, largely related to the closure of its Medley and TenSevenSeven businesses. Net debt fell A$36.3 million to A$5.5 million, while inventory declined A$9.4 million to A$189.7 million, with inventory productivity improving 13%.
The group ended FY26 with 281 stores, six fewer than a year earlier, following a review of its retail network and investment in selected locations. Trading momentum continued into FY27. For the first 16 weeks, through 18 October 2026, group same-store sales rose 6.6% in constant currency terms and 2.3% in Australian dollars. Sales increased 11.3% in Canada, 4% in Australia and 7.1% in New Zealand, with gross margins holding in line with the previous year.
The company is prioritising digital growth, store productivity, product innovation and customer services. Its product strategy includes expanding laboratory-grown diamond offerings while reinforcing the premium positioning of natural diamonds. Its value-focused Bevilles brand is also showing renewed momentum, with management reporting sales and margin growth as the group enters the key Christmas trading period.