Michael Hill sees stable results despite changing market conditions

Image of necklace from Michael Hill. — The company’s digital sales rose 6 per cent to deliver over $50 million for the first time. (Source: Facebook)

By Darshana Gupta August 25, 2025

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Overshadowed by the deaths of both its founder and its CEO, jeweller Michael Hill has released trading results showing a slight decline in revenue.

Reported in Australian dollars, groupwide sales eased by 0.2 per cent for the year to $644 million in the current financial year.

The company’s net profit after tax was $2.1 million, up $2.6 million from the same period last year, which included a $7.4 million impairment expense for the Bevilles Brand, which was partially offset by a $3 million favourable litigation.

The brand’s gross profit dropped 0.4 per cent to $389 million, its gross margin fell from 60.6 per cent to 60.5 per cent, and its comparable EBIT fell 3.5 per cent to $15.3 million.

The company’s digital sales rose 6 per cent to deliver over $50 million, reported at $50.9 million, for the first time.

On a same-store sales basis, Canada saw a record sales year, up 4.4 per cent, while Australia sales rose 1.2 per cent, and New Zealand sales fell 5.5 per cent.

Sales for the first seven weeks of the new financial year are encouraging, the company reported.

Same-store sales were up 3.2 per cent year on year, in Australia by 3.4 per cent, and in Canada by 6.8 per cent. New Zealand sales were down 3.2 per cent. Total group sales were up 3 per cent.

”FY25 saw a continuation of the challenging trading conditions experienced in FY24, with the added overlay of volatile gold and diamond prices, combined with the looming threat of US tariffs,” said chair Rob Fyfe.

“Despite this backdrop, and the tragic loss of our CEO Daniel Bracken in February, the business has continued to pursue our agreed strategy and made hard decisions to ensure we are well-placed to benefit from any improvement in economic and trading conditions,” Fyfe continued.

”It is with great sadness that I also acknowledge the passing of our inspirational founder Sir Michael Hill in July.

“His vision and ambition will continue to motivate the Michael Hill team for many years to come, and I couldn’t be prouder of the resilience, dedication and commitment shown by every team member within the Michael Hill Group.”