Michael Hill International’s profit turnaround driven by Canadian boom

Jewellery retailer Michael Hill International has turned the tide on its profitability, with an unlikely market leading the way.

With 285 stores across Australia, Canada and New Zealand, Michael Hill saw its half-year revenue reach $370.9 million, up 3 per cent year-on-year.

The company recorded a net profit after tax (NPAT) of $22.3 million for the period, a 32 per cent increase. The company recorded a loss in its 2024 full-year results.

Australian sales led the way at $209 million for the period, followed by Canada with $105.8 million. However, the gap between the two countries narrowed in terms of before-tax profits, with just $9.8 million separating them.

This was driven by a 70-basis-point increase in the Canadian business’ gross profit margin to 61.5 per cent. With 82 stores in its portfolio, same-store sales grew by 6.1 per cent.

In New Zealand, retail revenues reached NZ$62 million, a 2.4 per cent increase. Gross margin fell by 60 basis points to 58.3 per cent.

“Over the half, we acted on that by tightening our product focus, improving our go-to-market, clarifying expectations in stores, and improving how we communicate across our teams,” CEO Jonathan Waecker said.

Waecker began his role in August 2025, following the death of the company’s founder. 

He added: “Most importantly, this result reflects the work of our teams. Their willingness to adapt, execute consistently and build on what is working gives me the confidence that we are strengthening the business and creating a more sustainable platform for growth.”

The company opened three flagship stores in Adelaide, Sydney, and Toronto ahead of the busy Christmas period.

“While we remain mindful of current economic conditions, the first half demonstrates that consistent execution of retail fundamentals is translating into improved performance for the Group,” Waecker said.

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