Michael Hill is increasing its investment in Canada after the country emerged as the jewellery retailer’s fastest-growing market, with stronger sales, rising profitability and a significant store modernization program planned for the year ahead.
Canadian revenue increased 7.3% to CAD $174.2 million in fiscal 2026, while same-store sales rose 7.0%. Comparable EBIT increased 16.3% to CAD $21.9 million, and gross margin improved by 20 basis points to 60.3%. Michael Hill described Canada as its fastest-growing market by sales and its clearest growth opportunity.
Momentum has continued into fiscal 2027. During the first eight weeks of the new financial year, Canadian same-store sales increased 9.8%, compared with gains of 1.7% in Australia and 3.3% in New Zealand. Michael Hill is responding with additional investment in Canadian marketing and inventory, plans to modernize five of its six highest-volume stores and a continued search for new locations.
Canadian Sales and Profitability Reach New Highs
Michael Hill attributed its record Canadian year in part to a market-specific approach to products, promotions and marketing. Canadian online sales increased 22% during fiscal 2026, significantly ahead of the 10% increase across Michael Hill’s global online business.
Bridal was another major contributor. The Canadian segment recorded particularly strong bridal growth, while improved performance in diamond fashion and coloured stones helped support gross margin. Stronger bridal sales also lifted average transaction values and brought higher-value customers into the business.
Chief Executive Officer Jonathan Waecker told analysts that Michael Hill continues to see considerable room for growth in Canada, citing the resilience of the market and the retailer’s relatively modest market share.
“In Canada, we are just facing into a market with an incredible amount of opportunity,” Waecker said during the results presentation. He also pointed to the 22% increase in Canadian online sales as evidence of the opportunity across stores and e-commerce.
The Canadian business posted the stronger results despite higher security expenses following a series of robberies and other security incidents. Michael Hill said those incidents have since slowed.
Michael Hill Targets an 85-to-90-Store Canadian Network
Michael Hill ended fiscal 2026 with 81 stores in Canada and continues to target what it describes as an optimal footprint of between 85 and 90 locations. The retailer says it currently operates Canada’s second-largest fine-jewellery store network.
The expansion target follows several years of network consolidation. Michael Hill operated 86 Canadian stores at the end of fiscal 2023, 85 in fiscal 2024 and 82 in fiscal 2025 before finishing fiscal 2026 with 81. In the latest year, one Canadian store opened and two closed.
Sales have moved in the opposite direction. Canadian revenue reached successive records even as the store count declined, including CAD $157.1 million in fiscal 2024, CAD $162.4 million in fiscal 2025 and CAD $174.2 million in fiscal 2026.
The history helps explain Michael Hill’s current approach. New stores remain part of the plan, while capital is increasingly being directed toward productive existing locations, higher-value products and improvements to the customer experience.
Peoples Jewellers describes itself as Canada’s largest fine-jewellery retailer, with more than 90 locations from the Maritimes to British Columbia. Michael Hill’s stated target of 85 to 90 stores would keep its physical network close in scale to the country’s largest national fine-jewellery chain.
Five Major Canadian Stores to Be Modernized
Michael Hill plans to modernize five of its six highest-performing Canadian stores in fiscal 2027, extending its refreshed network across Toronto, Vancouver, Calgary and Edmonton. The company has not publicly identified the five locations.
The program follows major investments in Toronto and Vancouver. Michael Hill relaunched its Yorkdale Shopping Centre store as a Canadian flagship on November 1, 2025, incorporating the retailer’s updated brand design, consultation areas, personalized jewellery offerings and expanded customer experiences.
In April 2026, Michael Hill opened a new flagship at CF Pacific Centre in downtown Vancouver. The location became the retailer’s second new-concept flagship in Canada, following Yorkdale, and forms part of its broader move toward a more premium and experience-focused retail environment.
Michael Hill says the economics of its refitted stores are encouraging. Across the broader network, refreshed locations are recording improvements in average transaction values, margins and conversion rates above the network average.
Bridal and Bespoke Jewellery Drive Higher-Value Sales
Bridal is taking on a larger role in Michael Hill’s Canadian business. Strong bridal sales contributed to gross profit growth during fiscal 2026, increasing average transaction values while attracting customers the retailer believes can generate greater lifetime value.
The company has also expanded its bespoke jewellery service to more than 40 stores across Australia and Canada. Average bridal transaction values through the bespoke program are running well above Michael Hill’s overall bridal average.
Personalization is gaining ground elsewhere in the business. Made For You personalized and custom products now account for more than 15% of Michael Hill sales, while the company has identified men’s jewellery, core categories, bridal and watches among its areas for further development. Its diamond strategy includes premium lab-grown diamonds alongside natural diamonds.
The newer Canadian flagships provide a physical setting for that strategy, with greater emphasis on consultations, personalization, bridal appointments and service.
Online Sales Surge 22% in Canada
Michael Hill’s Canadian growth is increasingly coming through digital channels as well as stores. Online sales increased 22% during fiscal 2026, and the retailer plans further investment in its online customer experience, including expanded buy-online-pickup-in-store capabilities and clienteling tools for frontline employees.
The online increase substantially exceeded Michael Hill’s overall e-commerce growth of 10% for the year. As the company considers additional Canadian stores, it is also generating greater sales through a digital channel that management describes as the largest store in the business.
A More Disciplined Approach to Canadian Expansion
Michael Hill first expanded into Canada in 2002 and has spent more than two decades building its presence across the country. Its first Canadian store was opened and operated by Emma Hill, daughter of founders Sir Michael Hill and Christine Hill.
The latest strategy places greater weight on the economics of that network. Across the group, gross profit per store increased 4% in fiscal 2026 while inventory productivity improved 13%, giving Michael Hill greater confidence to reinvest selectively in productive inventory and stronger locations.
Capital spending has also shifted toward physical retail after several years of heavier technology investment. Michael Hill built or refreshed 14 stores globally during fiscal 2026, including four flagships, and expects capital expenditure and SaaS-related spending to increase to about AUD $25 million in fiscal 2027 as further store upgrades and an AI-enabled inventory planning project proceed.
In Canada, the strategy combines a modest increase in potential store count with heavier investment in important locations, inventory, bridal and bespoke services, digital capabilities and marketing.
Canada Takes a Larger Role in Michael Hill’s Turnaround
The Canadian investment comes as Michael Hill simplifies its global business and directs resources toward its strongest opportunities. The company has reduced its portfolio to two core brands: Michael Hill as its international business and Bevilles as its Australian value jewellery banner.
Michael Hill has set a medium-term goal of reaching an EBIT margin of at least 10%, with stronger store productivity, sustainable sales growth, gross margin improvement and operating leverage identified as the four principal drivers.
Fiscal 2026 marked considerable progress. Group revenue reached a record AUD $655.7 million, same-store sales increased 5.2% in constant currency and comparable EBIT rose 57% to AUD $24 million. Net debt fell to AUD $5.5 million from AUD $41.9 million a year earlier, strengthening the balance sheet ahead of further investment.
Canada now has a prominent role in that strategy. Sales growth is running ahead of Michael Hill’s other markets, e-commerce increased 22% in fiscal 2026, five major stores are scheduled for modernization and additional locations remain under consideration.
The shift is particularly notable given the recent contraction in the Canadian network. Michael Hill is generating record sales from fewer stores and is now preparing to grow the footprint again selectively, with an eventual target of 85 to 90 locations. The next stage of its Canadian expansion will be measured as much by what those stores produce as by how many stores the retailer operates.
