Michael Hill shareholders raise share price concerns despite sales growth
Michael Hill International has reported strong sales growth for the start of its financial year, but shareholders at its annual general meeting today voiced concern about the jeweller’s share price.
For the first 16 weeks of the 2027 financial year, group same-store sales were up 6.6% year-on-year on a constant currency basis, and up 2.3% in Australian dollars, driven by strong performance across all segments.
Michael Hill’s Canadian segment led the way, with same-store sales in Canadian dollars up 9.8% for the first eight weeks and 11.3% for the first 16 weeks.
The New Zealand segment was the next best performer, with same-store sales in New Zealand dollars up 3.3% for the first eight weeks and 7.1% for the first 16 weeks.
The Australia segment had more modest growth, with same-store sales in Australian dollars up 1.7% for the first eight weeks and 4% for the first 16 weeks.
Gross margin held in line with the prior year, supported by disciplined pricing and retail execution, with refreshed go-to-market campaigns.
Chief executive Jonathan Waecker said he was encouraged by the momentum building across the group despite an uncertain macroeconomic environment.
“Our product offer is stronger, our go-to-market campaigns are resonating, our teams are energised, and we’re executing with greater consistency,” Waecker said.
“Christmas is our most important trading period, and despite the uncertain economic environment, we’re optimistic about the opportunity ahead. Our focus from here is simple: execute our plan well and deliver a fantastic Christmas for our customers.”
Michael Hill is targeting several product categories for the Christmas season, with newness across colour, diamond fashion, tennis, bridal, men’s, own-brand watches and silver.
The company confirmed it would offer more than 500 new products in the second quarter compared with the same period last year, including a jewellery advent calendar, waterproof jewellery, and refreshed men’s and religious ranges.
Michael Hill expects to open two new stores before the end of the calendar year, with one in Perth, Australia, and another opening in Richmond, Christchurch, in November.
The group plans to refit five of its top six stores in Canada, while actively exploring new sites.
The group will also reset marketing and go-to-market activity, supported by increased investment in productive inventory across the group.
This includes more investment in the group’s online channel and customer experience, with expanded buy online, pick up in-store capability.
Waecker spoke to “capturing the full diamond opportunity” and said laboratory-grown diamonds would support growth, with natural diamonds reinforcing the business’ premium positioning.
Expanded personalisation is also on the cards, alongside custom and bespoke experiences.
Fyfe and shareholders
Thursday’s annual general meeting was also the last for long-running chairman Rob Fyfe, who is stepping down from the role.
Fyfe initially planned to end his tenure in mid-2025, however, he stayed on to ensure continuity after the sudden deaths of former chief executive Daniel Bracken and company founder Sir Michael Hill.
Speaking directly to shareholders, Fyfe said it had been a privilege to represent them and work alongside the Hill family, his fellow directors, management teams and the thousands of people in the business.
He will be succeeded as chair by Claudia Batten, who assumes the position on November 28.
“We have worked closely together over the last 18 months in preparation for this handover, and I am genuinely excited with the leadership partnership that Claudia and Jonathan [Waecker] have formed. Michael Hill is in great hands,” Fyfe said.
After the company’s presentation, shareholders voiced an equal measure of support for the company’s recent positive performance, alongside criticism of Michael Hill’s low share price.
Michael Hill’s share price rose 2c to 43c today but is only up 3c over the past year.
Fyfe and Waecker directly addressed concerns, noting that delivering meaningful share price gains was a priority, but acknowledged it was dependent on the market continuing to see improved performance.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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